Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
First, lawmakers in Washington may be inching closer to a deal to help avoid a government shutdown at the end of this week. We get the latest from Bloomberg's Amy Morris in the nation's capital.
Sources tell Bloomberg the bipartisan Senate bill would extend funding for four to six weeks, shorter than what Democrats wanted, but could get it through the House. Once it passes the Senate, it goes to the House, where Speaker Kevin McCarthy will face a tough choice on whether to hold a vote at all. So far, McCarthy has not been able to muster enough Republican votes for a rival stopgap measure that would cut spending by twenty seven percent and
change border policies. Now, if McCarthy does put this Senate bill up for a vote, Conservatives have threatened to try to oust him in Washington. I'm Amy Morris, Bloomberg Radio.
All right, Amy, thanks Will. In addition to negotiations over a possible government shutdown, the autoworkers' strike is also making headlines this morning. President by and is stepping further into the dispute and a highly unusual move. And Bloomberg's Ed Baxter has the story.
Biden travels to the Detroit area today to join workers on the UAW picket line. White House Folks Women Karine Jean Pierre he is.
The most pro union president in modern.
Times and says the message is clear.
This is the president that's made very clear that he believes that corporate profits should lead to record UAWA record UAW contract.
Now, Donald Trump visits Michigan on Wednesday as a two battle for the blue collar vote. I'm Ed Baxter, Bloomberg Radio.
Okay, Ed, thank you. President Biden's decision to stand alongside United Auto Workers on the twelfth day of their strike appears to be historic. More on that from Bloomberg Auto reporter Oliver Crook.
The question I think is does this help the union workers more or does this help Biden more?
So?
This is the first time over one hundred years that are sitting president hasn't done anything like this and really breaking with a historical president. And it comes at a time when the US are really showing the highest support for unions in about twenty five years. So politically for Biden, this is certainly an attractive thing. The risk for Biden is that if this goes on longer and longer and longer the economy starts to suffer, that this is going to be used as ammunition against him.
Whom Bergato reporter Oliver Crook says the Biden administration has no formal role in the negotiations between the UAW and the automakers.
Well, turning to the markets now, Nathan, the CEOs of two of Wall Street's biggest banks have been weighing in on growth and rates. Goldman SAX boss David Sulomon said he expects the FED to hike further and the economy to cool. Here's what he told the American Energy Security Summit.
I think it's going to be hard to get inflation back to the target, and that probably means if inflation is sticky, we will see additional interest rate increases, and ultimately that probably does lead to a little bit more
of a slowdown in the economy. Whether that's a recession or it's just a slow down, you know, it's hard to say, but it would be unprecedented to go through this type of a tightening cycle and not see us get to a little bit of slower economic growth and what we're seen right now.
And the comments from solom Income as JP Morgan CEO Jamie diamond says he's not sure if the world is prepared for seven percent rates. Speaking to the Times of India, Diamonds said that going to that level would be much more painful than getting to five percent.
On top FED officials. Also speaking about interest rates, Karen Minneapolis FED President Neil Kashkari says he expects the Central Bank will need to raise rates one more time this year.
So the economy has continued to exceed expectations in its underlying resilience. So if the economy is fundamentally much stronger than we realized on a margin, that would tell me rate probably have to go a little bit higher and then be held higher for longer to cool things off.
Minneapolis Fed President Neil Kashkari made those comments yesterday at the University of Pennsylvania's Wharton School.
Well turning to Asia and Nathan the troubled that Chinese property developer Evergrand says its mainland unit has defaulted on a five hundred and forty seven million dollars on shore bond the default comes is reported to emerge that former executives have been detained by Chinese authorities. Bloomberg's Leretti Chen as more from Hong Kong.
The local media ties Sing, which is a reputable media and mail in China, reported last night that the EXCFO and CEO of Evergrand Group were detained by police. And these are the people who used to be right hand men of Qui ka Yin, the founder of Evergrant. So this is quite significant in terms of the destiny of this company.
You know, whether it's.
Going to finish all these unfinished projects while its chief executives are detained.
Bloomberg's Loretta Chen says the detentions had another layer of uncertainty to Evergrant's to debt restructuring plan.
We've got some legal news to get you caught up on this morning. Karen, a top Apple executive, is set to testify in Washington today at the Justice Department's antitrust trial against Google. Eddie Q, Apple's services chief, plans to defend the lucrative deal that made Google search Engine the default option on the iPhone. Sources say Q plans to say he's always believed Google makes the best search engine, and that's why Apple uses it as the go to
option across its major devices. The government accuses Google of using its dominance in search to hinder competition, and.
Nathan Bloomberg News has learned the Federal Communications Commission will announce plans today to reinstate so called net neutrality rules governing broadband providers. Rules barring broadband providers from unfairly interfering with Internet traffic were gutted by the FCC under Republican leadership during the Trump presidency. President Biden said he would recommit the United States to the principles of an open Internet, including net neutrality, and it's time now for a check
is some other stories makeing news around the world. For that, we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good.
Morning, Karen. President Biden calling on Congress to pass legislation to fund the government and avoid a shut down by the end of this week.
Funding the governments one of those basic fundamental response boers for Congress and the Republic is in the House.
No start them on the job, just top collect.
Following a meeting with the President's Board of Advisors on HBCUs, President Biden called on House Republicans to abide by the bipartisan funding agreement that he negotiated with House Speaker Kevin McCarthy back in May. House Republicans are preparing for a hearing this week that would focus on President Biden and legal questions about the involvement in his son Hunter's business affairs. Bloomberg's Nancy Lyons has that story.
A spokesman for the House Oversight Committee says Thursday's hearing will focus on quote the president's involvement in corruption and abuse of public office end quote. Morning Consults Eli Yoakley tells Bloomberg Sound On Democrats seem resigned to what they call a political stunt.
A good number of Democrats think it's okay to open this investigation. I think some of that might be just do it to clear the air.
President Biden's team has tapped a bench of Democratic veterans of Donald Trump's impeachments to expose what they say is political disarray in the Republican Party in Washington. Nancy Lyons Bloomberg.
Radio Writers Guild of America leadership is set to vote today on whether to approve a tentative deal to end the writer's strike. Its negotiating committee reached the agreement with Hollywood's Toop Studios over the weekend, suspending all picketing. If the deal is agreed upon, it would then go to the roughly eleven thousand WGA members for approval. The writers walk out started more than one hundred and forty days ago,
bringing the film and TV industry to a halt. Louisiana Governor John Bell Edwards is requesting a federal emergency declaration from the Biden administration regarding as salt water intrusion at the Lower Mississippi River. No officials are worried this would impact the water supply in that region. The Army Corps of Engineers is beginning work on a project this week that they say will help, but they have to work quickly.
It is estimated that Gulf water could be making its way into New Orleans water treatment plants by next month. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I Mamy Morris Bloomberg, Karen.
Great Amy, thank you, and we bring you news throughout the day here on Bloomberg radio. But now you can get the latest news on demand whenever you want it. 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. And it's time now for the Bloomberg Sports Update, and for that we bring in John stash Hour John Kem.
The Philadelphia Eagles began last season eight no ended up playing in.
The Super Bowl.
They're off to a three and oh start this season. Played Monday Night football at Tampa Bay.
Hurts of the Gun's time he steps up, he's looking still looking, has time? Lets it go at it as complete touchdown. I'll love kills you give Jaalen Hurts enough time, Za Killa, Scott Open and Jalen two a thirty four yards.
Click WIP Radio in Philly the call. The Eagles beat the Bucks twenty five to eleven. Hertz did have two interceptions, but he had that touchdown pass plus a Seenie run despite playing with flu like symptoms. The Bengals needed to win they were zero and two, like they were last year when they ended up in the ANC Championship game. They avoid the zero to three start. They beat the
Rams in Cincinnati nineteen to sixteen. Injury news, Chargers receiver Mike Williams out for the year, torn ACL Saints quarterback Derek Carr week to week with a shoulder injury. They have not ruled him out for playing this Sunday. The Raiders quarterback Jimmy Garoppolo in concussion. Proto call Baseball Pennant Race is a big win for the Astros five to one at Seattle behind Justin Berlerander when eight in's allowed, only three had struck out.
Eight.
Mariners are in that race for a wild card, but they've lost four in a row. Texas right now looking like the team that's gonna win the AL West. Six straight win for the Rangers. They had four home runs in a five to one victory over the U Angels. John Stash I wear Bloomberg Sports.
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Good morning, I'm Nathan Hager with a couple of major political stories to follow this morning. With just five days till a possible government shut down, time is running out for the House to cut a deal, but the Senate may be making some progress of its own.
Meantime.
It is day twelve of the United Auto Workers' strike, and today President Biden plans to make some history, becoming apparently the first sitting president to join a picket line. Let's get more on all these stories. We're joined now by Bloomberg News Senior editor Bill Ferries. Bill, Good morning. Let's start off with the possibility of a government shut down here? What is going on in the Senate? We focused so much on the infighting in the House. Is
their progress to report though? On the other side of Capitol Hill.
Hi, Nathan, Thanks for having me. There is some signs that Republican and Democratic negotiators up on the Senate side are trying to find a way to compromise on a measure that would keep the government open for four to six weeks from that October first deadline. Is still a lot of details to be worked out. We don't know if things like Ukraine spending would be a part of that.
But if that can pass through the Senate, then it puts House Speaker McCarthy in a bit of a bind figuring out whether he holds a vote on that measure with many of his hard right members still not happy with any kind of an agreement that doesn't look at more border funding and that doesn't look at cutting Ukraine funding.
What about Speaker McCarthy's own plan to avoid a government shut down, the idea that he would cut domestic agencies pretty drastically. Is that still on the table.
It doesn't look like that's gotten much traction. He's gotten opposition from a lot of sides on that, and I think, you know, we we also know there's some other efforts in the House to try to find a way to maybe quickly end a shut down if possible. I think as this week progresses, it's you know, they're just the members are just back today. They have you know, five
days heading into Saturday with this deadline. I think it's very possible that every single day this week we're going to hear about new efforts on one side or the other to try to avoid this. As you know, Nathan from covering this for so many years in Washington, these talks will tend to go till the very last minute.
If there's time to use, it gets used. We could very well be talking about a measure that keeps the government open going, you know, getting voted on Friday or Saturday, or talks continuing until that deadline, and then the shutdown begins.
While this talk is going on. We got the warning yesterday from Moodi's, the last credit agency that still has a high, the highest possible credit rating for the US, warning that if there is a shutdown, it would erode confidence in American governance. Is that the kind of thing that gives lawmakers a kick in the pants to try to get some kind of deal done.
You know, I think it's something a lot of lawmakers on both sides would say they know is coming, and it's not a huge surprise. I don't think that's going to factor into the kind of core group of Republicans who are really kind of holding Kevin McCarthy's feet to
the fire on this right now. I don't think that's going to be something that persuades them or that causes a breakthrough in the deal, unless possibly, as I think we saw a little over a decade ago with a shutdown, then you really see the financial markets reacting more strongly.
I think they're gonna I think markets have been taken it a little bit in stride, but I think as we get closer to Saturday, especially Friday, as markets close, we're going to probably see more of a more volatile action in the market.
In the time we have left, Bill, let's talk about President Biden and his plan to join the picket line today. This seems pretty unprecedented, even for a president who's called himself the most pro union president ever.
That's right. I think it is unprecedented. We don't have We've been looking trying to figure out when a sitting president has ever joined a picket line, and I don't think we've found an example of that. You've obviously had very pro union presidents and particularly Democratic presidential candidates are often out there with organized labor. But to have a sitting president sit down really way in on one side of that so strongly, that will be something that we
really haven't seen ever. And of course, on the other hand, you have a former President Trump heading to meet many of those striking auto workers the following day, so there's this real duel for support among the striking autoworkers up in Michigan, of course, a critical battleground state for any candidate in twenty twenty four, in.
Just thirty seconds left interesting to see this happen as well, when up to now the Biden administration has been pretty hands off when it comes to the autoworker negotiations.
That's right, I think, you know, I listen, President Trump has had support in the past with a lot of working class voters in Michigan. I think there's some real concern that his appearance could eat into President's support in a critical state, and I think the President wants to show his bonifides as a big supporter of the labor movement.
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