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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, The lift in futures this morning comes on signs that, after forty one days, the longest government shutdown in US history may be close to coming to an end.
Like we're getting very close on the shutdown. We'll never agreed to give any substantial money or any money too really prisoners illegals to come into our country. Can I think the Democrats understand that?
That was President Trump speaking before the Senate voted sixty to forty last night to advance a bill that would fund most of the government through January thirtieth, while providing full year funding for agriculture, veterans Affairs, and Congress. Eight moderate Democrats broke with their party leaders to break the filibuster,
including Independent Angus King, who caucuses with Democrats. He says, we're publicans weren't willing to budge on Democrats demand for a deal on expiring health insurance subsidies.
The question before us is how's the best way to get there? And it was our judgment after six weeks going on seven weeks of this shutdown that that path wasn't working.
It was Independent Senator Angus King of Maine. We get more from Bloomberg's Jill Deesis.
The moderate Democrats that the Republicans were able to sway over to achieve this sixty forty vote say that they were promised basically another vote on some Obamacare tax provisions that was ultimately at the heart of the shutdown, So that could come some time in December if that's what was ultimately achieved here.
Bloomberg's Jill Deesis reports it's still not clear how quickly the shutdown will end. Even after this procedural step. The Senate needs consent from all its members to end the shutdown quickly. Any one of them could force days of delays.
Nathan Mother shutdown continues. Millions of Americans are still facing flight delays and uncertainty over government food aid. Now. A federal speals court is ruled against the Trump administration and it's bid to only partially fund a snap benefits while it challenges a lower course order to fund the program
at one hundred percent. The Department of Agriculture and other agencies have argued fully funding November snap benefits during the shutdown would limit funds for other programs, but the appeals court ruled that doesn't outweigh the harm of leaving tens of millions of Americans without food as winter approaches.
Now, the government shutdown is added to headaches for travelers across the country. US airlines canceled more than twenty seven hundred flights yesterday, mostly because of the shutdown and the Federal Aviation Administration's order to reduce air traffic, but compounding the problem was frigid weather, delaying thousands more flights. Bloomberg meteorologist Craig Allen is tracking the latest weather pattern.
The core of this unseasonably cold outbreak is plunging south and east this morning, and it's going to bring subfreezing temperatures to about three dozen states from the planes to the East coast, and rather than rise, the mercury may tumble all day, as much as twenty to thirty degrees from highs on Sunday, so tonight's lows will be in
the twenties and thirties. It'll be felt from the Canadian border all the way down to the Gulf Coast, with numerous record lows expected in Texas, Louisiana, Mississippi, Alabama, even Florida, and Lake Effect snow will also be a big problem downwind of all the Great Lakes, but most notably running down the entire length of Lake Michigan. It's going to result in near treacherous to near impossible travel conditions, especially in Chicago and its suburbs.
That's Sploomberg meteorologist Craig Allen. Chicago's O'Hare International Airport is a major hub for United and American airlines Nathan.
President Trump suggested tariff revenue could be used to fund payments of at least two thousand dollars to most Americans. In a post on Truth's Social President Trump said that the government would soon begin paying down the country's debt. Treasury Secretary of Scott Besson says Trump's suggestion could come through the tax cuts passed in the Economic Policy Bill earlier this year.
It could be just the tax decrease is that we are seeing on the President's agenda. You know, no tax on tips, no tax on overtime, no text and social Security deductibility of auto loans. So you know, those are substantial deductions that are being financed in the tax bill.
Treasury Secretary Scott Besson made the comments on ABC's This Week, and you can catch the program Sunday afternoons on Bloomberg.
Radio and Karen. President Trump has reportedly pardoned Rudy Giuliani, along with other people allegedly involved in attempts to overturn the twenty twenty presidential election. Justice Department pardon attorney Ed Martin posted a list on x of prominent Trump allies who've gotten reprieves. It also includes attorney's Sidney Powell, Boris Epstein, John Eastman, and former White House Chief of Staff Mark Meadows, along with seventy two others. It does not include President Trump.
The pardon document states that explicitly.
Well Nathan, there are Morris signs. Tensions between the US and China continue to ease. China has added more than a does in fentanyl precursors to a list of controlled exports to the US, Mexico and Canada. The mos there's a step and fulfilling Chain's pledged to combat the flow of synthetic opioid ingredients to the US. Meanwhile, the Trump administration has suspended a probe and to China's shipbuilding industry for one year.
Turning to the markets now, Karen, as we mentioned, futures are higher on optimism the government shutdown is coming to an end. SMP futures right now are up one percent, Nasdaq futures up one and a half. Valerie Titel tracks the markets for Bloomberg.
Well, look, I think for many weeks we thought there was really limited progress on the shutdown. We finally get a breakthrough, and we're seeing a very positive reaction from the equity market.
Now, this all started on Friday.
There was a steep reversal in the US equity market into the close, and with futures following through this morning, we've now essentially erased half of the drawdown in the S and P five hundred. Last week was a really bad week for the equity market. The Nasdaq had its worst week since early April. The S and P five hundred had a five percent draw down from all time highs at the end of October.
Bloomberg's Valerie Ttel says the S and P five hundred had risen for three straight weeks weeks before last week's losses.
Well, Nathan, several stock strategists say solid earnings will fuel a market rally next year. Morgan Stanley's Michael Wilson says there were clear signs that an Ernie's recovery was underway. UBS strategists forecast the S and P five hundred will hit a record five hundred points by the end of twenty twenty six, and that's about an eleven percent gain from current levels. And Oppenheimer's John Stoltzfuss says it's too early to give up on ship makers and the outlook for AI the.
In company news, Karen Pfizer has won the bidding war for the weight loss drug startup Met Sarah, securing the ten billion dollar deal after Danish drug maker Nova Nordisks said it did not plan to increase its offer. Met Sarah cited a call from the Federal Trade Commission regarding potential risks from proceeding with the proposed Novo deal structure.
And there's a new boss at Diagio Nathan, the British drinks giant has named Dave Lewis as the new CEO. The former head of Tesco and Sheriff hally On is set to take up the role at the start of next year. The announcement comes just days after the British Strange Giant lowered its full year outlook for sales and profit, setting weak demand in China and the US and Diaggio shares They are up about seven and a half percent
this morning. Time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomber's Monica Ricks. Monica, good morning, Good morning, Karen.
President Trump wants a Justice Department now to investigate meat packing companies. We get the details from Bloomberg's Amy Morris.
In Washington, President Trump is accusing foreign owned meat packers of driving up the price of beef in the US. He asked the Department of Justice to open an investigation. The president posted on social media that he wants a probe into whether companies are driving up the price of
beef through quote collusion, price fixing, and price manipulation. Trump announced the move days after his party suffered losses in key elections in which the winning Democratic candidates focused on the public's concerns about the cost of living in Washington. Amy Morris, Bloomberg Radio.
Later today, President Trump will hold a historic meeting at the White House and welcome the new president of Syria. Akmed al Sharah was once a leader of Al Qaida in Iraq, but he severed ties with the terror organization and later overthrew Syrian President Bashar Ala Sade. Edward Derejon is a former US ambassador to Syria and Israel.
If it's a question of national security interests, what happens in Syria doesn't only affect the region itself.
He says, it could affect relations with Israel and the entire Middle East. President Trump became the first sitting president to attend a regular season NFL game yesterday in half a century, not since Carter in nineteen seventy eight. He watched the Washington Commanders lose to the visiting Detroit Lyons. And Blue Origin postponed a planned second flight of its new Glen rocket yesterday in Florida due to weather conditions
and unspecified ground equipment issues. The company says it's now reviewing opportunities for a new launch date and will eventually and two probes to Mars to find out why it lost its atmosphere. Global News twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm Monica Rix and this is Bloomberg Karen.
Thanks Monica. Time now for our Bloomberg Sports update, and for that we bring in John Stashauer.
Thanks Karen. On an NFL Sunday, came the news of the death of Paul Tagliabu at the age of eighty four. He was the NFL commissioner from nineteen eighty nine to two thousand and six. First Game of the Day, the best game of the day, five league changes. In the first game ever played in Berlin, Germany, the Colts beat the Falcons in overtimes. Jonathan Taylor rush for two hundred
and forty four yards scored three touchdowns. Also passing away Sunday was Lenny Wilkins, who's in the Basketball Hall of Fame as both a player and coach. He was eighty eight. That's your Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. Now more than forty days into the longest government shut down in US history, the Senate has taken a major step to bring it to an end, advancing a bill to reopen the government without the health subsidy extension that Democrats had demanded. New Hampshire Senator Jean Shaheen is one of the eight Democrats who broke ranks.
I understand that not all of my Democratic colleagues are satisfied with this agreement, but waiting another week or another month wouldn't deliver a better outcome.
It's New Hampshire Democrat Jean Shaheen, following the sixty forty vote to advance this legislation in the Senate and for more. We are joined by Bloomberg's Jill Desis. Jill good Morning, walk us through the deal that was made between Democrats and Republicans and what ultimately got these eight Democrats to crack.
Good morning, Yes, Good morning, Nathan. So what ultimately happened here was this deal only goes so far as funding part of the government primarily Congress itself plus the Department of Veterans Affairs, Department of Agriculture for the next year, and then it funds the rest of the government agencies through January thirtieth, just you know, kind of implying that, you know, it's not going to be too much longer
until we're kind of back here again. But it does you know, reach a deal at least then to fund the government through that time. Also, there's some agreements here about repaying for load workers, et cetera. So that's really where we stand in terms of, you know, the crux of the issue here, the issue that Democrats really kind of had at the heart of why they were, you know, with they were trying to double down on that idea
of extending those healthcare tax credits. What they've really only gotten from the Republicans here is a pledge that there will be a vote on that issue, on a bill on that issue in December. So nothing in terms of sort of like a long term sort of fulsome commitment there. You really just have the opportunity for a vote sometime next month. I mean, whether that actually ultimately lays out in democrats favor, I think, but that's what you have
to see here. But you know, clearly, I mean the fact that they did get these eight moderate Democrats on board with them, I'm not sure that the rest of the party is going to be too happy about that kind of agreement. So that's kind of where we stand now. They'll go in for another vote in the morning, but that's and then you know the kind of page the way for a House vote there. But that's kind of where we stand.
Yeah, that's I think that Senator Shaheen seemed to allude to in that comment just there, with the fact that the Democrats had sort of held out against this idea of going forward with a promise of a vote on the subsidies, what does that say about where this could where this bill could go in the House.
Yeah, I mean, look, it's a good question. So I think in terms of, you know, where we ultimately end up in the shutdown, I mean, I guess, you know, the big difference here in the House is that I mean, you know, the Republicans have a majority there. Maybe you know, you ultimately don't see as much blowback, but I think, you know, it really does raise a lot of questions about, you know, some of these issues that the Democrats have
really been fighting for here, right. I mean, I think that the fact that they've even reached the deal here it does kind of demonstrate how difficult it is for Democrats to use any kind of leverage they have in a Republican controlled Washington to push back on Trump's agenda. I mean, this is something that you know, a deal they were trying to reach just kind of on healthcare tax credits, you know, more meaningfully. They were trying to
reach this for weeks. But you know now, I mean we're in the midst of the you have the longest government shutdown ever. Clearly they weren't able to you know, sort of make any breakthrough here. So we'll have to see kind of where that vote ultimately materializes in terms of, you know, a future vote on health care tax credits in December and whether the Democrats are able to actually take that and move it forward into any meaningful progress to accomplish anything on their agenda.
This is Bloomberry Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day Bray