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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 begin on day seven of the federal government shutdown. The Senate has voted for a fifth time on a stopgap spending bill that would reopen the government until November twenty first, but would not include the healthcare subsidies that Democrats are demanding. That bill has failed for a fifth time, but now President Trump is signaling he's willing to negotiate.
We have a negotiation going on right now with the Democrats that could lead to very good things.
And I'm talking about good things with regard to healthcare.
The President Trump did not say specifically which Democrats he's negotiating with. House Minoriti Leader Hakim Jeffrey says it's not him.
Either Leader Schumer or myself have heard a word from the administration about resolving this issue, making clear to us that the White House wanted to shut the government down.
That's House Minoriti Leader Hakim Jeffries. Later, President Trump posted on truth Social that he'd be willing to work with Democrats, but only after they allowed the government to reopen. He's also suggested layoffs of federal workers could be triggered if the shutdown continues much longer. Those workers will begin to miss paychecks this Friday, and the military will start going without pay on October fifteenth unless the government reopens well Nathan.
President Trump is facing more pushback over his efforts to send the National Guard to counter immigration protesters in major cities. The state of Illinois is suing over the President's plan to deploy the Guard to Chicago, but a federal judge is declining to rule right away on the state's request for a two week haul to the deployment. Illinois Governor J. B. Prisker says the President's moves are entirely political.
The Trump administration is following a playbook. Cause chaos, create fear and confusion, make it seem like peaceful protesters are a mob by fire, uring gas pellets and tear gas canisters at them, why to create the pretext for invoking the Insurrection Act.
Illinois Governor JB. Pritzker denies the White House's claims that a local police are not doing enough to protect immigration and customs enforcement. US Sister Judge April Perry is not ruling immediately on the state's request for a temporary restraining order, but she says she's troubled by a lack of clarity on where troops should be mobilizing and what they'd be doing. She asked the Trump administration to delay its plans until she holds a hearing on Thursday.
Karen, we turned out to the political crisis in France. President Dmanuel McCraw is giving his outgoing Prime Minister Sebastian Lecorneo until tomorrow night to negotiate a last ditch deal to salvage his government. The decision buys mccrawl a little more time to decide his next steps, and we get the latest in Paris from Bloomberg Daybreak. Euro banker Stephen Carroll.
What of twenty four hours at spainber we heard, you know, a cobnist only announced on Sunday night, for the prime minister to resign yesterday morning, only to be told no way, go back and try again. You get an extra forty eight hours to try and negotiate some sort of compromise that might eventually lead to a budget Bloomberg.
Stephen Carroll says President mccorum's options include appointing a new prime minister, calling a new parliamentary election, or resigning. Opposition groups are clamoring for a fresh legislative vote.
Well n than today March, two years since the October seventh, the checks on Israel Hamas in Israel are continuing. Indirect negotiations for a second day in Egypt be the very latest from Bloomberg Middle East correspondent Jumana Burccci.
There is a degree of optimism that perhaps this is the diplomatic breakthrough that the families of those hostages have been waiting for, that Palestinians have been striving for. President Trump says, I really think we're going to have a deal.
He's personally invested in this, and you can question his motivations, but what is very clear is the US right now the administration is very focused on getting a deal across the line because President jomp seems to think that he's the only world leader capable of getting two piece in Gaza. So there is a lot of stake right now. There's
a lot of focus from the international community. Many people are saying that this is perhaps the last real efforts and last attempt to get to some form of resolution, so cautious optim is imprevailing.
And Bloomberg Middle East correspondent j Mona Brissecci there twelve hundred people were killed in another two hundred and fifty were abducted. On the attack on Israel two years ago. More than sixty seven thousand Palestinians have been killed in the conflict, according to the AMAS run Health Ministry in the territory.
Turning to Wall Street, now Karen futures are lower a day after stocks closed, it yet another record high. The S and P five hundred is now gained for seven straight sessions for its longest winning streak since early May. Leslie Marx is chief investment Officer for Equities at Mackenzie Investments.
When you look at the factors that are driving equities, it's been primarily, of course, price momentum. The things that are going higher are what people want, of course, but also earnings momentum has been a top factor, and earnings momentum is a very strong fundamental that we can really anchor ourselves on and say that actually, with these companies reporting strong earnings, we can build comfortable with the higher valuations that they're trading at today.
It's Leslie Marcus at mackenzie Investments. The SMP five hundred rows four tenths of one percent yesterday.
Well, Nathan, the biggest winner was the Nasdaq one hundred index, which rose another eight tenths of a percent, leading the way Advanced micro Devices, which soared almost twenty four percent after inking a deal with open Ai. AMD will build out AI infrastructure and a pack that chip maker said could generate tens of billions of dollars in new revenue. And we spoke with AMD CEO Lisa Sue.
Together now we're embarking on a massive buildout of six gigawatts of AI compute and it's a big deal for us, for our shareholders, for our teams, and you know the partnership and the overall AI ecosystem.
And get the full conversation with AMD CEO Lisa Sue and Open Ai president Greg Brockman on the Bloomberg Podcast channel on Youtubell Karen.
We've also been speaking with Citadel's Ken Griffin. He says investors are starting to see gold is safer than the dollar. He says that's something people should be worried about. The billionaire says it is clear many are now reassessing the greenback.
As you see sovereigns around the world, the central banks around the world, as you see individual investors around the world go, you know what, I now view gold as a safe harbor asset in a way that the dollar used to be viewed. That's that's what's really concerning to me.
Ken Griffin made those comments in an interview with Bloomberg's Fancy Lacua at the Citadel Securities Conference. That conversation is also on the Bloomberg Podcast channel on YouTube.
In company news, Nathan Bloomberg News has learned Tesla plans to unveil a cheaper version of the Model Y later today. Sources say the cheaper vehicle will lack certain features and use less premium materials to offset the loss of the up to seventy five hundred dollars federal tax credit that the US stopped offering this month.
Karen Tesla CEO. Elon Musk has reportedly named a former Morgan Stanley executive the chief financial officer of his artificial intelligence startup XAI. The Financial Times is reporting that Anthony Armstrong will help finance both Xai and Musk's social media platform x The paper says Armstrong helped Musk complete the forty four billion dollar acquisition of the former Twitter.
Time.
Now for look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Mahr.
Michael, good morning, Good morning Karen.
It's the homestretch for the three remaining New York City mayoral candidates. Front Runner Democratic nominee Zoron Mumdani proposes city owned grocery stores, fair free buses, free childcare, and a freeze on rent stabilized apartments. He spoke to ABC seven about how it will be funded.
By increasing taxes on the top one percent of New Yorkers by two percent.
It is by increasing the state's top corporate tax rate to match that of New Jersey.
Meanwhile, former New York Governor Andrew Cuomo, running as an independent, says if Mamdani wins the election in November, it would be a gift to President Trump.
He said, if they elect this person, then I Donald Trump, I'm going to have to step in take over New York to protect the good people of New York.
Cuomo spoke yesterday on ABC's The View Mamdani leads the field in the polls over Cuomo and Republican Curtis Sliwa on Bloomberg's Leewa says the polls had been wrong several times.
Two munch into the Democratic primary, they were preparing the coronation of Andrew Cuomo as on next MAYA forty points ahead is Johann Mandani. He lust by thirteen points. I look at my mentor in this rate, George Bataki on November second of nineteen ninety four against the better Cuomo Mario. They had him down by twelve points. He won by three points.
Current Mayor Eric Adams dropped out of the race about a week ago. Former Mayor Michael Bloomberg, founder and majority owner of Bloomberg News parent Bloomberg Lp, endorsed Cuomo in the primary and has contributed to a pack supporting his candidacy. Sean Diddycomb's lawyers want the hip hop mogul sent to a low security federal prison in New Jersey to serve his four year prison sentence. They were told a judge Monday that the facility's drug treatment program will help him
stay clean. The Supreme Court has rejected an appeal from Glaine Maxwell, the imprisoned ex girlfriend of Jeffrey Epstein. The Justices declined to take up a case that would have renewed attention on the Epstein's sexual abuse saget. Lawyers from Maxwell argued she never should have been tried or convicted for a role in luring teenage girls be sexually abused
by Epstein. Global News twenty four hours, a date and whenever you want it with the Bloomberg News Now now Michael Barrn, this is Bloomberg Karen.
Thanks Michael, time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
Thanks Staring. A pair of NLDS game twos. The Dodgers, with four runs in the seventh inning, held on on the bottom of the ninth and beat the Phillies four to three, and they go back to LA with the two games to none lead. The Brewers hit three home runs, two of them were three run shots, a seven to three win over the Cubs. Milwaukee leads the series two zip. Mother Night football in Jacksonville, Kansas City had a two touchdown lead, then trailed retook the lead with less than
two minutes ago. Trevor Lawrence slipped and fell getting a snap, but scored a one yard run with twenty three seconds lap. The Jags won thirty one twenty 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 Serious XM, and around the world world on Bloomberg dot Com and the Bloomberg Business Appum. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. Forty eight hours. That is the window that French President Emanuel mccron has given his newest Prime Minister, Sebastian Lecornu to salvage his government and keep their country from going even deeper into a political crisis that had Lecornu announcing his resignation only yesterday. Joining us from Paris for the very latest his Bloomberg Daybreak,
Europe Banker Stephen Carroll, Stephen, good morning. It took Prime Minister Lecorno less than twenty four hours to hand in his walking papers. Will another forty eight make a difference? Good morning, Good morning, Nathany.
I mean, that's the question that everyone in Paris here is wondering about, and indeed across France, because we are looking at a situation where the the first of those meetings that Sebastian Lecorneo was due to hold with the center right political parties has just finished in the past few minutes. No news of what was discussed just yet, but they were trying essentially to rebuild the coalition they had before it all fell apart yesterday morning and Sebastian
and the Coornu resigned. So that's the first goal they have to try and get back to where they started from. But that still doesn't leave them with a sufficient number of parliamentarians to pass a budget, which is of course the broader goal. A question that we'll have to try and answer between now and tomorrow night is whether or not there's any hope for the original alliance or indeed an expanded alliance that might actually be able to make
progress on this key point. The optimism is fairly thin at the moment. I think it's fair to say the markets so have cammed down a little. We're still looking at that spread between French and German bonds at over eighty basis points. That's our critical measure of risk that we're watching in markets. Markets certainly got a fright when Sebastian the Coornu resigned yesterday. But things are at least in a holding pattern for now.
So what are the options for Lacornu with this clock ticking down now?
Well, look, he has to try and make sure, first of all, the original partners are on board, and we're talking mostly about the center right Republicans Party led by the outgoing interim Interior Minister, whatever term he'd like to apply at the moment, Bruno Rataio. He's not taken part in that meeting this morning at the Prime Minister's office, although he has spoken directly to Sebas General Kornu. If he comes back on board, at least there's some hope
of that coalition holding together. The issue is and was, whether or not you can convince the center left Socialist Party to get on board and to help put together a budget plan, which is what they're all trying to work towards. If that doesn't happen by tomorrow evening, Emmanuel Macron has used this expression he will take his responsibilities now.
Plenty of interpretation as to what that might mean, but it's seen as a sort of veiled threat to these parties, to that he will hold fresh parliamentary elections if there isn't an agreement reached. And those centrist parties, according to the polls, are those that are likely to suffer. From the center left to the center right, those are the parties likely to lose out. Voters seem more likely to go to the extremes, the far left and the far right.
So that is the threat whether if you don't manage to put together a deal and agree to something now, is that you could end up in a worse off position afterwards.
And it sounds Stephen like that's the kind of threat that could hurt President Macron himself politically. I mean, we've talked before about how he's resisted all this time the idea of resigning himself. But what are the options for President Macron if there if it comes to the point that they could be calling a new election.
Well, look, the same three options are on the table for him now that have been every time that he's found himself in this situation, and it's been fairly frequent over the past two years. He can find a new Prime Minister or even reappoints abas General Kornu, by the way, that's still on the table, he can call those parliamentary elections we talked about, or he could go as far
as resigning. One key development in the conversations this morning has been the commentary from one of Macron's closest allies, Eduar Philippoho's's first prime minister when he was elected in twenty seventeen. Now they've had somewhat of a political separation since, but have remained close allies. And Edward Philippe said this morning that Emmanuel Macron should call early presidential elections once he has passed this budget. That is a big departure
from Edward Philippe's position. It's an indication of how even Macron's close allies are a bit fed up with them. The leader of Macron's own party on television last night, by the way, admitted he didn't understand the decisions that Emmanuel Macron was making any more. Now you have to think about this in a broader political context. All of these political figures and political parties are thinking about the
next presidential election, currently scheduled for twenty twenty seven. They might want to put a bit of clear blue water between themselves and Emmanuel Macron to make things easier for them and to increase their own prospects of election. From the Elise's point of view, no sign or sound that Emmanuel Macron's even considering resigning for now. That's been ruled out by everyone that we've heard of, and the last time we heard from Emmanuel Macron himself, he's also ruled
it out. But a lot can happen, as we know in French politics, in a short period of time, and we're still about thirty six hours away from that deadline set tomorrow evening.
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