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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 with the fallout from the government shutdown. The Trump administration is planning to use it to fire federal workers this week. Bloomberg's Amy Morris is in Washington with the latest.
White House Budget Director Russell Vote is planning to swiftly dismiss federal workers, assigned that Republicans are leaning into hardball tactics to pressure Democrats to cave to end the shutdown, sources tell Bloomberg. Vote told House lawmakers some federal agencies will start terminating workers this week. Vice President JD. Vance at the White House.
If this thing drags on for another few days, or god forbid, another few weeks, we are going to have to lay people off. We're going to have to save money in some places so the essential services don't get turned off in other places.
Van says the administration isn't targeting agies based on politics. In Washington, Amy Morris Bloomberg Radio.
All right, Amy, thank you. Meanwhile, the Trump administration has also halted eighteen billion dollars in federal funding for infrastructure projects in New York City. Budget Director Vote cited concerns over diversity and equity policies, but President Trump had warned he would use the shutdown to target quote Democrat Things.
Nathan that could include projects in the energy space. Vote also said he will cancel eight billion dollars earmarked for renewable energy projects in more than a dozen states that voted for Kamala Harris in the twenty twenty four presidential election, including hydrogen projects in California and the Pacific Northwest.
And with the government shutdown, Karen the Bureau of Labor Statistics won't be releasing key economic data that the FED keeps a close si on that includes tomorrow's September jobs report. Chicago Fed President Austin Golesby, speaking to American public media, says a lack of official government data makes it harder for central bankers to interpret at the economy.
I consider the Bureau of Labor Statistics job data to be the absolutely best data source on jobs and statistics in the entire world. If we aren't going to have those, it's problematic.
Chicago Fed President Austin goles We also reiterated concerns about a recent pickup in services inflation.
Well, Nathan, the Supreme Court is refusing to allow President Trump to immediately fire Federal Reserve Governor Lisa Cook. It means Cook can remain in her position until at least January, when judges are due to hear arguments in her case. Bloomberg's Michael McKee says the delay marks a long postponent by the court.
One reason maybe that they are taking up the case of the FTC commissioner that the President is trying to fire, whom the Court allowed to be fired. But they're going to hear arguments in that case in December. And because some of these previous cases have involved the Federal Reserve and the Court has suggested their maybe some slack given to the Fed that isn't given to these other agencies.
And Bloomer's Michael McKee no said the Supreme Court decision means Cook will continue to vote on interest rate decisions. White House Press Secretary Caroline Levitt says President Trump was well within his legal authority to fire Cook.
Certain to Tech News Now, Karen open Ai has completed a share sale that makes it the most valuable startup in the world, surpassing Elon Musk's space X. Sources tell Bloomberg that current and former employees of open Ai sold roughly six point six billion dollars worth of shares to a group of investors at a record five hundred billion dollar valuation. Peter Elstrom is Bloomberg's executive editor for Global Tech.
That is a big accomplishment for a startup that has, you know, still still is losing lots of money, still has to prove that it has a business model behind this. But it's a big step up, especially because the valuation is going up to five hundred billion dollars from three hundred billion dollars just earlier this year when Soft Bank led around financing in the company.
Bloomberg's Peter Elstrom reports open Ai is locked in an increasingly bitter fight for top AI engineers, and the share sale is seen as one way to offer an incentive for them who stay well.
To geopolitics now Nathan, President Trump says he will be meeting with Chinese President she in a month and that soybeans will be a major topic of discussion. Bloomberg Steven Engels says the President's using social media to accuse China of hurting American soybean farmers.
Trump is becoming increasingly concerned by the unrest, if you will, by US farmers, because keep in mind, you know, traditionally in the past decade or so, anywhere between twenty eight to upwards of sixty percent of US soybean crops, which is underway, by the way, the harvest is underway right now, go to China.
Bloomer Stephen Engle as that the President announced he plans to use a small portion of tariff revenue to help farmers.
In the Middle East, Karen Arab and Muslim leaders are pushing Kamas to accept the twenty point he's planned for Gaza, the President Trump announced this week. One senior official told Bloomberg it's important to focus on what he called wins in the plan, including an end to the displacement of Gazans. The source also says the aim of a full Israeli withdrawal is a significant achievement. Katar's Foreign ministry says Hamas is preparing its response to the plan.
We go to developments now in the war in Ukraine, Nathan. Multiple reports say the US will provide Ukraine with intelligence for a long range missile strikes on Russia's energy infrastructure, and that the Trump administration is considering sending Kiev.
More powerful weapons.
Ukrainian President Vladimir Zelenski spoke this morning about the request for a long range Tomahawk missiles from the US.
We're thankful to President Trump.
This Dalak.
Last time we had very good meeting, very productive Dalak, and we spoke about a long French missiles pass on.
His Ukraine's President Vladimir Zelanski was speaking in Copenhagen to take part in the European Political Community Summit.
On Wall Street, Karen stocks climbed to a record on the first day of fourth quarter trading. The Dow, SNP and Nasdaq all hit record highs. As equities rally, so does gold. Goldman Sachs strategists are saying this morning there's room for bully and to rally even more. The firm says interest from private investors presents large upside risk. Thereforecast of forty three hundred dollars an ounce by the end
of twenty twenty six. This morning, Kobec's gold is trading at thirty eight ninety nine thirty oh.
We have a note in big tech this morning as well. Nathan. Apple pausing a planned overhaul of its Vision pro headset to focus on developing smart glasses that can rival metas products. It's working on at least two types of smart glasses, including one that will pair with an iPhone and another with a display that could challenge Meta's ray band display. Apple's glasses will rely heavily on voice interaction and artificial intelligence.
The City Group is now the main home of President Trump's money after years of getting shunned by major banks. Bloomberg News has learned the relationship began after CEO Jane Fraser congratulated the president on his second term win. The President's wealth has surged in recent years, driving up potential revenue for his bankers. Financial firms are previously unwilling to take on the President's wealth after past failures to repay loans tied to troubled business dealings.
Time now for look at some of the other stories making news in New York and around the world, and from that we're joined by Bloomberg's Monica Rix.
Monica, Good morning, Hey, Good morning, Karen. The United Nations says it's now closely monitoring a global flotilla that was intercepted by the Israeli Navy yesterday as it was sailing to deliver some much needed aid to Palestinians in Gaza. You, and spokesperson Stefan Jujarek.
We're obviously following the flotilla very closely. We just we do not want anyone to get hurt, and we want people's rights to be respected.
That flotilla included nearly fifty boats and five hundred activists, including Greta Tumberg and Nelson Mandela's grandson. Meantime, Israel's Defense minister has ordered all remaining Palestinians to leave Gaza City immediately, saying anyone who stays will be considered a militant supporter and face the full force of Israel's latest offensive. The call coming as Hamas ways a potential peace deal from President Trump to end the war and return remaining hostages.
Officials expect the death toll to keep rising in the Philippines as rescuers there use backcoes and sniffer dogs to sift through rubble of collapse buildings for survivors of a powerful earthquake. At least seventy two people have died so far, and destruction and rain is hampering rescue efforts. Two Delta planes clipped each other overnight at New York's LaGuardia Airport.
You guys sit cliffs correct, Yeah, we did their.
Right wing CLI our notes that sound courtesy of Live air Traffic Control dot Net. One of the planes had just landed, the other was preparing for departure, and one of the plane's wings hit the other's nose. One person was hurt, a flight attendant who apparently suffered a knee injury. TSA's warning your travel plans could be impacted by the government shutdown with more delays and cancelations amid staffing shortages. This traveler is worried about service in Ohio.
You can only ask people to do so much genuinely.
Even if a service is very important, people are only going to do things out of the goodness of their heart.
For so long, passport processing remains mostly unaffected. And renowned conservationists Jane Goodaald has died. She was known for her groundbreaking chimpanzee field research and globe spanning environmental advocacy. She was ninety one 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 Nathan.
All right, Monica, thank you, Thanks Monica. Time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
Thanks Karen, to be going to day. In baseball, there are three decisive game threes in the Wildcard playoffs, the Tigers and Guardians in Cleveland, where the state alive, winning six to one, Padres and Cubs at Wrigleyfield, San Diego won Game two, three nothing, Red Sox and the Yankees in New York. The Yanks state alive, winning four to three. One series did end. The Dodgers beat the Reds eight
to four. The Dodgers will now play the Phillies. Brian Snicker will not return as manager of the Atlanta Braves, a job he had the past decade. He'll remain as an advisor. 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 around the world on Bloomberg dot Com and the Bloomberg Business opp This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. Now, more than twenty four hours into the federal government's shut down, the White House says the first layoffs could begin in the next one to two days. It may be assigned the Republicans ready to play hardball to get Democrats to cave, but Vice President jd Vance says they'll have little choice if this goes on much longer.
We are going to have to lay some people off if the shutdown continues.
We don't like that, we.
Don't necessarily want to do it, but we're going to do what we have to to keep the American people's essential services continuing to run.
And that was Vice President jd Vance at the White House. For more, we're joined by Bloomberg News editor Alexander Pearson. Alex I mean they do have a choice technically, don't they. I mean, in the past, there have been temporary furloughs of federal workers, So what is the strategy here? Good morning, Good.
Morning, Nathan. Yeah, that's right. Previously, during government shutdowns like this, federal workers would be furloughed, they wouldn't get any payment, and then when the government reopened, they would basically all be taken back and would get back pay, and what the administration's doing here is sort of escalating the shutdown fight by threatening to fire a lot of these non
essential workers. And that's been very much signal in the last few days, and that's where they will head if the Democrats don't crack and try to you know, don't agree to pass they stop measure to reopen the government. So it's definitely an escalation by the White House in terms of this shutdown fight.
Well, they're saying that the layoffs are going to happen in the next day or two. Are we seeing signs in federal agencies that that is already starting to happen, that those preparations are taking place.
So yeah, the Office of Management and Budget sent a memo late last week asking for the agencies to draw up plans for who you know would be fired under this contingency. There's no indication yet that they've actually started to implement any of those plans, and there's still not been any reporting and certainly no announcement of which agencies would be affected, what the scopes of the cuts would be.
At the moment, it's still very much the White House signaling that they're going to go ahead without giving details of what they actually plan to do.
And in the meantime, we've already seen the White House Budget Director talk about cutting billions of dollars in New York City infrastructure spending as well as green energy projects and other states led by Democrats. Is this all part of the pressure campaign as well?
That's certainly how it's being read, you know, in amongst
those journalists and also by the Democrats. It's interesting to note that these sort of attacks on in terms of suspending infrastructure funds in New York and also counseling hydrogen projects on the West Coast, they're very much targeting, you know, Democrat leading states, states that voted for Kamala Harris in twenty twenty four, and so naturally the reaction by the Democrats in those states has been to call it out as political payback as a way of pressuring the Democrats
to fold in this shutdown fight. Although it's interesting to note that the White House itself has not made that link. They are claiming that, you know, that these funds are not necessarily being used correctly and that they're probring you know, whether there is compliance there, but it's certainly being read as a way of putting Democrats under pressure.
So in our last thirty seconds, Alex, are we seeing that any signs that that pressure is being ought to bear on Democrats, that they could be wavering in their determination to push these healthcare cuts.
Among leadership. No, they've at least publicly remained very steadfast in the opposition to agree to any kind of deal to reopen the government without that concession, without their demands being met. But there are some moderate Democrats who in the Senate who have been talking with moderate Republicans about maybe some sort of deal that they could get through to from the government for a very short amount of
time while they negotiate on Democrat demands. But it's not really clear at this point of whether they're going to get anywhere with that. Like I said, it's certain moderate Democrats and the wider party seems to be steadfast in subposition.
This is Bloomberry Daybreak, your morning podcast and the stories making news from Wall Street to Washington and beyond.
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