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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we are headed into day three of the government shutdown in Washington. The Senate is expected to hold another vote today on a stopgap spending bill to reopen the government into mid November. Democrats are holding firm on demands to extend healthcare subsidies that expire at the end of the year, and now President Trump is threatening to slash jobs at what he calls Democrat agencies that don't align
with his agenda. White House spokeswoman Caroline Levitt was asked how deep the cuts could go.
It's likely going to be in the thousands.
It's a very good question, and that's something that the Office of Management and Budget and the entire team at the White House here again is unfortunately having to work on today.
Press Secretary Caroline Levitt at the White House. Now, some budget experts of question whether it's legal to conduct permanent lay off during a show down. House Minority Leader Hakim Jeffrey says Republicans have refused to negotiate.
This is the first week of this shutdown, But we've had months of chaos and cruelty unleashed on the American people, and the American people are paying close attention.
House Democratic Leader Hakim Jeffreys. A Washington Post poll finds more voters blamed President Trump and Republicans for the shutdown than Democrats by a seventeen point margin. If the Senate does vote today, Majority leader John Thune says he is unlikely to hold further votes into the weekend. The House doesn't return from its recess until Tuesday.
Well, Nathan, if it weren't for the governments shutdown, investors would be looking forward to the jobs report. That data comes out the first Friday of every month, and Bloomberg's Michael McKee tells us what we could have expected.
It's not exactly Sherlock Holmes dog that didn't bark. But the government shutdown means no jobs report today, so no warning or reassurance on the state of the economy. Alternate data ADP employment and ism manufacturing suggesting high remained weak in September that, in theory, could keep the Fed on track to cut rates at the end of the month.
The hope, of course, is the folks in Washington can settle their little feud and get the payroll data out before that and before we miss any other key indicators. Michael McKee, Bloomberg Radio.
All right, Mike, thanks, So the shutdown is got gold on track for its seventh consecutive week of gains. Bully, it has sorted more than forty five percent this year. The price is now on track for the biggest annual gain since nineteen seventy nine, and stocks enter today's session at all time highs. Walter Todd is chief investment officer at Greenwood Capital.
We think the market's a little bit over at skis is kind of I hurt someone say the today price for perfection in a very imperfect world. I think that's a good description of where we are right now. So we do see the opportunity for some broader volatility, even though individual name volatility has been significant.
Greenwood Capitals Walter Todd stock futures are higher this morning, setting the S and p F five hundred up for a sixth straight gain. That would be its longest winning streak since July.
Now, the latest on the trade war, Nathan Treasury Secretary Scott Besson predicts, quote a pretty big big breakthrough in the next round of talks with China, even as the Trump administration takes steps to support American farmers heard by a decline in Chinese purchases of soybeans. Besson spoke on CNBC.
As I leave the trade negotiations for the US with my counterpart on the Chinese side, the Vice Premier. What gives us a great comfort is the respect that the two leaders have for each other. So it'll be very helpful for them to be able to speak in person and set the framework for trade going forward.
Treasury Secretary Scott Besson says the upcoming negotiations will occur before the scheduled November tenth truce expiration date. Besson also says news on support for American farmers and the soy sector in particular is expected to be announced next Tuesday.
Turning the company news now, Karen, we're watching shares of Applied Materials in the pre market. They are down more than three percent. The largest US maker of machinery used to manufacture semiconductors says an expansion of rules that restrict the export of its products to China will take another chunk out of its revenue. Applied Materials expects it to cost six hundred million dollars in fiscal twenty twenty six, which runs through next October.
We have a setback for Boeing. Nathan Bloomberg News has learned the company's seven seventy seven X is slated to fly commercially for the first time in early twenty twenty seven instead of next year. The delay could result in potentially billions of dollars in accounting charges, with analysts estimating the non cash accounting charge could run from two and a half billion to as much as four billion dollars.
Boeing executives are set to discuss the extent and cost of the latest schedules slip for the jet when Boeing reports earnings on October twenty.
Well Karena was a rough session for credit companies TransUnion and Equifax. Their drop came after fair Isaac announced a new program that gives mortgage lenders a way to get its credit scores without buying them from those companies or experience. Shares of fair Isaac, which goes by the name Fiico, surged eighteen percent.
And there may be a big AI deal in the works. Nathan Bloomberg News has learned Global Infrastructure Partners As in advanced talks to acquire mcquarie backed Aligned Data Centers. Sources Aligned could be valued at about forty billion dollars in a transaction. A deal with Mark the latest in a series of deals as investors buy for exposure to the leaders of the AI technology. At forty billion dollars, GP's deal for Aligned would rank among the world's five biggest
transactions this year, according to data compiled by Bloomberg. Time now for look at some of the other stories making news in New York and around the world world, and for that we're joined by Bloomberg's John Tucker. John, Good morning, Yeah, and good morning Karen.
Police in the UK say they've identified the man who killed two at a Manchester synagogue where worshippers were gathering for Yom Kippor, and Bloomberg's James Wilcock has.
More Jahad al Shami, a thirty five year old Britcisen of Syrian descent. Investigations are still ongoing, and the Home Section this morning says two things. Firstly, we don't yet know if this is a terrorist cell, and secondly that the perpetrate was not known to authority. So it's worth saying Al Chami is Arabic for the Syrian and it is a sort of a known non deguere for Jahadis to take a name, so that may not yet be relevant to the investigation.
The attacker drove his vehicle into worshippers and was shot dead by police. Three others remain in the hospital. It's sentencing day for Sean Ditty Colms in his prostitution related convictions in New York. Prosecutors argue the music mogul deserves at least eleven years in prison. Has the defense pushers for time served. A fire broke out a Chevron oil refinery just outside Los Angeles last night. It's in towering flames into the year that were visible for miles. Officials
and El Segundo urged people to stay indoors. Nobody was hurt, and Munich Airport temporarily shut down late yesterday after a string of drone sightings in the area. It's the latest mysterious drone over flights in the airspace of European Union member countries. And Taylor Swift's twelfth studio album, The Life of the Showgirl, is coming out today. She posted this message on.
X Hey, it's Taylor.
Check out my new album The Life of a Showgirl now on YouTube and YouTube music and baby, that's show business for you.
Well. Swift is now worth two point one billion dollars. That's up a billion dollars from two years ago when the Bloomberg Billionaires Index first outed her as a member of the Three Commas Club. Global news twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm John Tucker. This is Bloomberg.
Karen Nanks sean time now for our Bloomberg Sports Update, and for that we bring in John stash Hour.
Thanks Darren.
There were three decisive game threes the Baseball Wildcard Playoffs, starting with Detroit six to three win at Cleveland. The Tigers move on to place Seattle that comes beat San Diego three to one. Next out for them as Milwaukee and the Yankees will now play Toronto. They shut out the Red Sox four and up. In rookie pitcher Cam Schlitler went eight and is allowed no runs, struck out twelve over time. In the NFC West, the forty nine ers stopped the Rams on a fourth down int San
Francisco won twenty six, twenty three. That's your Bloomberg Sports Update.
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Good morning, I'm Nathan Hager. On day three of the government shutdown in Washington, DC, both Republicans and Democrats appeared dug in, and now the White House is warning the first federal layoffs from the funding lamps could come as soon as today. House Speaker Mike Johnson says, the Democrats are in a needless fight with President Trump.
How important is it to appeal to the radical left of your base and hurt Americans because if they drag this on through the weekend, more and more people will be hurt.
It's how Speaker Mike Johnson speaking on Capitol Hill this morning. We are joined by Terry Haynes, the founder of Pangea Policy. Terry, good morning, How deep could the pain go? How seriously do you take this idea from the White House that we could actually see layoffs come out of this shutdown?
Good morning, Nathan. I take very seriously the possibility that what the White House might do is institute these kinds of layoffs, riffs, furloughs, firings, you know, whatever they want to call it, whatever they want to do. You know, frankly, it's a signal from among other things, it's a signal
for travel or the direction of travel. Here you get a situation where, uh, you know, I if this ramps up in this particular way, among other things, Trump will have much less ability or much less desire to want to end the shutdown, because then Congress has a much greater likelihood of being able to overturn those firings.
There's a question, isn't there about whether it's legal to use a shutdown to conduct reductions in force. There are federal government protections for jobs that would need to be overturned in some way.
When they're oh yeah, absolutely, you know, I think the administration wants kind of two practical fights. One wants to be seen is going up against public unions, which the which they think are are illegal and and a bad thing anyway. Number one, anything that limits the executive's ability to oversee the executive branch is a bad thing I
think that way. Secondly, back to my earlier point, it's that, you know, once a shutdown is over, Congress has the a great ability to actually remedy a lot of this stuff through the annual appropriations bills, and of course Democrats have a lot of leverage there, and they'll of course want to take that leverage and do something with it
to reinstate a lot of those jobs. So, you know, the gun that's being held, the metaphorical gun that's being held to public employees heads, I think is quite real and quite large.
That raises a question about, you know, whether some of those jobs could be rescinded through recisions that the White House Budget Director has carried out in the past. But that's probably an argument for another day. In the meantime, I think we're expecting another vote in the Senate on the clean continuing resolution that Republicans have put out there. What are we expecting when it comes to how this fight over the spending bill that's on the floor will continue.
There's a lot of different trip wires that happened today. I don't think anything gets resolved today. Let me just say that first, but you'll have a Thune Johnson press event at eleven o'clock. The Senate Democrats have a lunch at noon. Thuon I think announced the Senate Today's Senate vote at one thirty. And let's remember that's not just on the temporary spending bills, but it's also on more
Trump nominees. So the signal that Schumer and Democrats give on those nominees I think also plays into this a little bit, since Republicans have been upset about what they
think of a Schumer obstructionism. There After that, I think nothing probably happens differently, But the question will be whether or not more Democrats peel off from the three that already have, and I think the answer to that today is no. But what I think happens is a lot of pressure behind the scenes, to say, from particularly from Maryland and Virginia senators, to say, look, you know, we you know the the problem with the public employees is so large that you know, we can't deal with us
that much longer. Why don't we just declare victory by announcing negotiations with Republicans on this, on the healthcare matter, and and be done with it for now?
Just thirty seconds left, Terry. But is there a risk that Republicans go too far with this pressure campaign, this idea of carrying out mass government layoffs.
Oh absolutely, yeah, you know, it's rebably. What's interesting about this from a from a kind of a political tactical perspective is Republicans have judged the moment very well. And I'm not taking their side on any of this by saying so, I'm just saying the judged it very well. And uh, and you've got a situation where, uh, you know where you know, but if they start pressing it too much, and there's always a temptation for that, uh,
you know, they they risk making the problem worse. And you know, for as I say, frankly, may the prospects for a full year spending and you know, on things like defense and other things that much more unattainable.
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