October 6, 2025 • 21 mins
On today's podcast:
1) French Prime Minister Sebastien Lecornu resigned Monday just a day after President Emmanuel Macron named a new cabinet, deepening the country’s political crisis. The premier quit less than 24 hours after Macron announced a government that retained most senior members from previous cabinets. That irked opposition parties looking for change, but in a surprising twist, the reappointed interior minister, Bruno Retailleau — who leads the center-right Republicans — also slammed the choice of ministers as failing to “break” with the past.
2) President Trump is pressing Israel and Hamas to seal a settlement to the two-year conflict that’s devastated Gaza and destabilized the Middle East, with the warring sides set to begin mediated talks on Monday. A key sign of progress in the negotiations, taking place in the Egyptian Red Sea resort of Sharm El-Sheikh, will be whether Hamas frees all the roughly 20 of its live hostages — plus the remains of those who are dead — in return for Israel releasing about 2,000 Palestinian prisoners.
3) Unions representing hundreds of thousands of federal workers asked a US judge to immediately block any mass firings by the Trump administration during the government shutdown while they press a legal challenge.The emergency request Saturday night to US District Judge Vince Chhabria in San Francisco follows what the unions contend are a series of statements from President Donald Trump and other senior officials signaling that agencies could take action on layoff plans as early as Monday. Kevin Hassett, Trump’s top economic adviser in the White House, said the administration is holding off on layoffs at least until Monday, when a divided Senate is due to vote for the fifth time on a stopgap bill to keep government open through November 21st.
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:09):
Good morning.
Speaker 3 (00:10):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Speaker 4 (00:15):
Karen, we begin with politics in Europe and a ramped
up political crisis in France. The country's Prime Minister, Sebastian
Lecorneo has resigned, just a day after President Emmanuel mccrowe
named a new government that was broadly criticized. We get
more from Bloomberg Jehan Dalbard in Paris.
Speaker 5 (00:32):
It is still a serious situation, but it is only
a political crisis yet and it doesn't look like a
fiscal non economic crisis. It will be for pro MACNC
to decigned a resignation. We think it's pretty unlikely, so
either he appoints a new prime minister or it called
for a new election, new general elections, But we don't
(00:55):
think it will solve the situation, because the political situation
is so fragmented in France that evening you general elections
once solved the problem.
Speaker 4 (01:03):
It's Bloomberg, Jean Delbarta. We are seeing an impact in
the markets this morning. Stocks in France are down one
point seven percent.
Speaker 3 (01:10):
Well, Nathan, we turned out to the latest developments to
end the war in the Middle East. Israel and Hamas
are preparing for indirect negotiations in Egypt, as hopes are
rising for a possible ceasefire in Gaza began more with
the Bloomberg's Dan Williams in Jerusalem.
Speaker 6 (01:24):
Well, we have delegations converging on Egypt the Red Sea
result of Charmoche. There will be more proximity talks. Abbas
will never engage directly with Israel, so there'll be mediation
by the Egyptians by a Katari technical team, which is
also expected in Kato. You remember, along with Egypt, those
were the two Arab powers that have mediated previous cease files.
(01:48):
But now what's being discussed is a peace plan put
forward by President Trump last week. Peace meaning that this
will not just be a self interested, time bound, cessational
suspension of hostilities, but an end to the war and
according to the plan, an end to Hamas institutionally in
(02:09):
the Gaza strip.
Speaker 3 (02:10):
And Bloombergs D and Williams in Jerusalem says a swap
of Israeli hostages and Palestinian prisoners would happen immediately upon
securing an agreement. While Hamas's disarmament would come in a
second stage.
Speaker 4 (02:22):
Turning back to the US now, Karen, it is the
sixth day of the federal government shutdown, and the White
House is signaling the first rounds of federal layoffs could
begin as soon as today. Government worker unions have found
an emergency request with a federal judge in San Francisco
to try to keep that from happening. President Trump was
asked about his job cut plans on his way back
from a Navy celebration in Virginia.
Speaker 7 (02:43):
Tek, you place right now, and it's all because of
the Democrats. The Democrats are causing the loss of a
lot of jobs with their it's a shutdown. It's there shutdown,
not our shutdown. It's there shutdown.
Speaker 4 (02:55):
Well, despite President Trump's comments, it's not immediately clear if
layoffs have taken place. Meantime, the Senate is set to
vote again today on a stopgap spending bill that has
failed four times before. Senate Minority Leader Chuck Schumer says
House Speaker Mike Johnson's refused to negotiate with Democrats on
extending healthcare subsidies.
Speaker 8 (03:13):
We've tried forty five days, and forty five days and
forty five days.
Speaker 2 (03:17):
From March on.
Speaker 8 (03:18):
We asked them to vote on it three times, the
Republicans in the Senate, they voted.
Speaker 2 (03:23):
No three times.
Speaker 4 (03:24):
But Speaker Johnson says there's time to negotiate once the
shutdowns over.
Speaker 9 (03:28):
The funding runs out in December thirty first. The month
of October is a critical time for us to get
to this, but we can't when Chuck Schumer keeps voting
to shut the government down for political reasons.
Speaker 4 (03:39):
Speaker Johnson and Leader Schumer appeared on CBS's Face to
the Nation heard Sundays on Bloomberg Radio.
Speaker 3 (03:44):
Well Nathan, a federal judge, has temporarily blocked the Trump
administration from deploying any National Guard troops to Oregon during
protests against an immigration crackdown. US District Judge Karen Immergut,
at Trump appointee, issued a temporary order late Sunday that
will launch at least fourteen days holding the administration's plan
to deploye hundreds of troops from California and Texas to Portland.
Speaker 2 (04:07):
Back to the markets now Karen.
Speaker 4 (04:09):
Stocks in Japan surge to an all time high as
Sanai Takaichi, a pro stimulus conservative, is poised to become
Japan's first female prime minister. While equity investors embraced the news,
bond markets did not longer dated Japanese bonds slid, and
we get more from Bloomberg's sharing on in Tokyo.
Speaker 10 (04:29):
We know that Sanaa Takaichi is a nationalist. We know
that she's a fan of Margaret Thatcher, a fan of
heavy metal music as well. But it's really the pro
growth policies that Santata Kaichi has talked about that is
really the focus for investors. She's talked about the bojspezy
monetary policy toned down her rhetoric during this election campaign,
(04:49):
but we know that she wants to continue expanding fiscal policy.
She's promised cash handel's tax rebates, hinting at raising the
tax free income allowance as well.
Speaker 4 (04:59):
Bloomberg sherry On in Tokyo, Japan's Nike index surged four
and three quarters percent.
Speaker 6 (05:04):
Nathan.
Speaker 3 (05:05):
Here in the US, futures are higher as who begin
a new trading week. The S and P five hundred
sits at an all time high, coming off six straight
days of gains. Amy Wu Silverman is head of Derivative
Strategy for RBC.
Speaker 11 (05:16):
Here we are with overall, with markets at all time
highs SKEW is relatively low. You know, all the hedges
that had been placed were not monetized because the markets
kept going up. And when I talked to investors, they say,
this just feels like the most reluctant rally.
Speaker 3 (05:32):
And RBC's Amy wu Silverman the S and P five
hundred is that more than fourteen percent so far this year.
Speaker 4 (05:38):
And this morning Karen Bloomberg Economics is out with its
latest outlook for global interest rates, and we get the
details on that from Bloomberg's John Tucker.
Speaker 12 (05:46):
Good morning, John and Nathan. The forecast highlights a significant difference.
The US will be cutting rates and much of Europe
will stay put. According to Bloomberg Economics, the Fed's going
to follow up it's cut last month with two more
by year end, and continue with quarterly cuts in the
first nine months of twenty twenty six. By contrast, Western
European central banks are forecast to be on hold. I
(06:08):
Fed officials next to gather at the end of the month.
The FOMC is in something of a bind if they
cut rates too fast. The long predicted acceleration in inflation
from tariffs could materialize. By not cutting fast enough, the
labor market could quickly go south. Meantime, the European Central
Bank officials have made it clear they're comfortable with rates
where they are at present, concluding that inflation won't stray
(06:31):
too far from their two percent target. In New York,
on John Tucker Bloomberg Radio, All.
Speaker 3 (06:36):
Right, John, thank you. In company news, Boeing may soon
be increasing its manufacturing output. Bloomberg News has learned Boeing,
as guiding suppliers at seven thirty seven max output could
reach a forty two jet monthly tempo as early as October.
To reach the first step in returning seven thirty seven
output to pre COVID levels, Boeing must still convince the
FAA that its factories and suppliers can keep pace while
(06:59):
maintaining qualities. 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.
Speaker 13 (07:08):
Michael, good morning, Good morning, Karen. The Supreme Court's termed
agends today. The High Court we'll hear a number of
cases this year, some on its emergency docket concerning the
limits on executive authority of the president in situations involving
the firing of agency heads and imposing tariffs without congressional approval.
Last term, the Supreme Court addressed the scope of nationwide
(07:31):
injunctions as applied to the Birthright Citizenship Order. Now, the
justices potentially could be taking up whether that is constitutional.
Two men accused of setting a Boston police cruiser on
fire are scheduled to be in court today. It comes
after a group looking to race on the city streets
over the weekend. Cops arrived to break up the crowd
(07:52):
of more than one hundred people on Massachusetts Avenue in
Tremont Street. Several vehicles were blocking the intersections. They were
ready to race and broke it up, and that's when
the violence began. Someone smashed the back windshield. Officers came
out of the vehicle, fireworks were thrown inside, and the
crewiser burst into flames. Two people from Rhode Island were arrested,
(08:13):
but Boston Police Commissioner Michael Cox expects there will be more.
Speaker 3 (08:17):
We will get every video and every piece of evidence
we can to find every individual that was involved.
Speaker 13 (08:22):
The officers were not injured. At least five people were
killed after Russia launched drones, missiles, and guided aerial bombs
at Ukraine overnight in a major attack that officials there
said target at civilian infrastructure. Ukrainian President Vladimir Zelenski says
Moscow sent over fifty ballistic missiles and about five hundred
(08:42):
drones into nine regions. It's Breast cancer Awareness Month and
time to remind people about the importance of early detection,
starting with the very first breast exam. Doctor Darien Sutton
says men can get breast cancer as well if you have.
Speaker 14 (08:59):
A family history, if you have a genetic risk. It's
not just for women, it's for all humans. If you
have that BRCA gen you need to talk to your
doctor about additional screening.
Speaker 2 (09:07):
But knowing the symptoms.
Speaker 14 (09:08):
If there is a change in your chest, if you
have a new lump, if there's a change in your nipple,
or there's any concerning signs, you need to talk to
your doctor to get evaluated.
Speaker 13 (09:17):
Doctor Sutton spoke to ABC Global News twenty four hours
a day and whatever you want it with Bloomberg News
now not Michael Barr and this is Bloomberg here.
Speaker 2 (09:25):
Thanks Michael all the time.
Speaker 3 (09:26):
Now for our Bloomberg Sports Update, and for that we
bring in John Stashauer.
Speaker 2 (09:31):
Thanks Darren.
Speaker 8 (09:31):
The Toronto Blue Jays after winning Game one of the
Alds ten to one, one Game two over the Yankees
thirteen to seven, so Toronto will take a two to
nothing series lead to New York. Seattle beat Detroit three
to two. That series is tied at one and upset.
In Sunday night football at Buffalo, New England won twenty
three to twenty. Philadelphia blew a two touchdown lead and
lost at home to Denver twenty one to seventeen. So
(09:54):
there are no undefeated teams left in the NFL. Is
only one winless team, that's the Jets. That's for Bloomberg's
What's It's Update.
Speaker 3 (10:02):
Stay with us more from Bloomberg Daybreak coming up after this.
Speaker 1 (10:10):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 2 (10:18):
This is Bloomberg Daybreak.
Speaker 4 (10:20):
Good morning, I'm Nathan Hager. The political crisis in France
has hit a whole new level. The country's Prime Minister,
Sebastian Lecornow, has resigned less than twenty four hours after
President Emanuel McCrone named a new cabinet that drew criticism
from seemingly all sides, including from some within it. For
the very Latest were joined by Bloomberg Daybreak, euro banker
(10:40):
Stephen Carroll, Stephen, good Morning. I'm honestly losing track of
how many prime ministers France has had in just this year.
Speaker 2 (10:47):
What did lecornew in Good Morning.
Speaker 15 (10:51):
Good Morning, Karen and Nathan look, they says the now
the shores is tenure for a prime minister. That's a
record that it has only been held since last a seven,
when you might remember Michelle Barnu went, but Sebastian Lecornu
has gone after twenty seven days in the job and
just fourteen hours after he unveiled his new cabinet, which
is also the shortest in history as well. This is
(11:13):
the same problem that has bedeviled every French prime minister
since the National Assembly snap elections last summer. This is
a question around being unable to form a majority in parliament.
Sebastian Leconnu has been the third prime minister since that
fractured parliament was returned to try to build a coalition.
He's been speaking in the past hour outside his office
(11:34):
in Paris, talking about how he negotiated as well as
he could behind the scenes, he couldn't see signs that
he would be able to build a sufficient coalition to
pass a budget through parliament or indeed address many of
the other key political issues that France is facing. He
had promised not to use the constitutional override mechanism that
(11:56):
he has available to him to force the budget through parliament.
He'd told the other part he wanted to build a
compromise with them, but he says the other parties weren't
willing to agree, even though they had made some signs
in private that they were willing to soften on some
of their positions. There was no consensus to be built,
and that's why he decided to resign now. One of
the key difficulties he had was after unveiling his range
(12:18):
of ministers yesterday, is that one of his most important
partners in his very minority government, the center right Republicans Party,
They had already said they weren't happy with the lineup
of ministers that were announced, despite the fact that their
leader Brunovottayo kept his job as Interior Minister in the
reshuffle there, so they weren't unhappy partners. They were due
(12:39):
to hold a meeting around now to try and discuss
their position in a government, a government that no longer exists.
Speaker 4 (12:46):
So now that the corn New's out, it raises the
question once again about whether anybody is going to be
able to get a budget through this National Assembly, whether
anyone can be prime minister. We've had so many at
this point, so what are the options going forward to you.
Speaker 15 (13:02):
It's the same three options that we had a month ago,
that we had at the end of last year, and
that we had in September of last year. When prime
Minister or President Emanuel Macron has been picking prime ministers,
he can try again. He can pick somebody else from
his own political family or from a different political family
within the Parliament. We've talked many times over the past
few months about the key role the center left Socialist
(13:25):
Party played and whether or not they could be tempted
into government. The last time around, they set out a
very clear agenda of measures that weren't palatable to the
center or the center right. So that presents the same
problem even if you did let them lead a government,
as to how you would build a coalition for a budget.
So that's one choice, go back to find another prime
minister and try again. You can call elections to the
(13:47):
National Assembly, what Emmanuel Macron did in June of last year,
but the polls don't indicate that you would end up
with in any greater consensus in Parliament now than you
did before. Although arguably French people are as sick of
this political turmoil as the markets appear to be. The
third option very unlikely. Emmanuel Macro himself has ruled it out,
would be that he would resign and call an early
(14:09):
presidential election.
Speaker 2 (14:11):
Those are the options.
Speaker 15 (14:12):
They don't get any easier, and it's difficult to see
the path forward.
Speaker 4 (14:16):
Now, given the fact that President mccron appointed a cabinet
that didn't include too many changes. It does appear likely,
doesn't it that the President would try to stick it out.
But is he feeling any pressure at this point to
make some changes here?
Speaker 15 (14:33):
Ultimately yes, but the changes that he can make are
only going to produce it would appear limited results. Whether
he'll attempt again to go back to some of those
parties and build a coalition or which is what we
thought he was doing the last time around, build a
consensus around some sort of budget proposals before putting a
government into place as a question, but we need to
keep an eye on the markets and all of this
(14:54):
as well. We've had French stocks selling off, particularly French banks,
but those government bond yields part of the problem in
France's difficult budget calculus rising again and the spread between
French and German yields what we use as a gauge
of risk in Europe when it comes to how investors
are viewing French debth. That's widened to the widest since
last December, two political crises ago, if you're counting, and
(15:17):
that is an issue that will weigh on Emmanuel Macron's
mind because he knows there are a series of deadlines
approaching for a budget. One has to be sent to
Brussels to the European Commission for approval within the next
couple of weeks, and an effort to try and put
that together and to stop a position where we're going
to end up with a rollover budget at the end
of the year, with the pain that would inflict on
(15:38):
both French taxpayers and on the state, is one that
he'll be sure to try to avoid. But as they
say at this point there are no easy paths out
of this crisis.
Speaker 4 (15:47):
And to that point, Stephen, is you say the cat
comparis is down one point seven percent, So yeah, there
is pain in the market this morning as well. Thank
you for this, Stephen, for the update. That's Sploomberg day Break.
Europe banker Steve Carol with us this morning, Karen Nathan.
Speaker 3 (16:02):
We're coming up on two years since the Hamas attack
on Israel that sparked a devastating war in Gaza. President
Trump isserving both sides to seal the deal on his
plan and the conflict. Indirect talks are said to begin
today in Egypt Israelly Prime Minister Benjamin et Yah, who
says he thinks peace is possible.
Speaker 16 (16:19):
I hope it will happen, but I can't guarantee that
will happen, and so if it doesn't happen, what President
Trump has said is that he will back as will
completely in acting forcefully against Almas.
Speaker 3 (16:31):
And that was Israeli Prime Minister Benjamin Att Yeah, who
went an interview with year own News and joining us
this morning from Jerusalem as Bloomberg News reporter Dan Williams. Dan,
good morning, what do you make right away of those
comments from Netan Yahoo, is that any sign that peace
can be reached here.
Speaker 6 (16:48):
Well, it's either all. It's the President of the United
States Trump who described this deal, this proposal, as one
that would bring peace. He says peace off to three
thousand years of conflict. So he definitely sees an epical
opportunity here. Whether all that will be achieved maybe in doubt,
because right now what we have is a partial Hamas
(17:10):
agreement following a full embrace of the proposal buying it
now a partial Hamas agreement to enter into it, meaning
Hamas has said it's open to releasing.
Speaker 17 (17:21):
The releasing the remaining forty eight hostages, and yeah, the
remaining forty eight hostages, and then discussing the other clauses
of the proposal.
Speaker 6 (17:32):
Hamas's misgivings are over the demand that it relinquish its weaponry,
that it fully relinquished power. Effectively, this proposal would see
Hamas ousted from the Gaza Strip and end of Hamas
institutionally in exchange for the physical survival of the remaining
Hamas members, who would presumably be offered an amnesty. So
(17:53):
it would appear that all parties are getting together, they
don't want to miss up an opportunity for that hostage release.
But making quite clear, and he does have vocal support
for Trump on this, that if Hamas doesn't get with
a program for what remains of the plan, Israel is
ready to redouble its attacks in the Gaza strip, where
it already controls something between seventy and eighty percent of
(18:16):
the territory, a territory that's really been laid ruined by
this two year old war that the Israel is prepared
to go in and it is words finish the job
by effectively crushing Hamas militarily and seeing an end to
that regime.
Speaker 3 (18:31):
Yeah, and their talks are going on today. Who is
taking part in these talks today specifically.
Speaker 6 (18:37):
Well, we already have the Hamas delegation there. It's led
by the de facto leader of outside Gaza, a man
who was actually out of public site for a number
of weeks because he was among the leaders of Hamas
that were targeted in a failed Israeli assassination strike in Cutter.
Though the capital of cut Cutter, like Egypt, has been
(18:59):
mediating which being Hamas in Israel during this war. So
he has now led this delegation to Egypt, specifically the
Red Sea resort of Charamelschet in the coming hours. We're
expecting in an Israeli delegation, a working delegation to be
out there. Basically, what we're waiting for here, all these
relies are waiting for is a sign that Hamas really
(19:21):
is on board with and able to deliver those forty
eight hostages, at which point Nathaniel's top advisor, Strategic Affairs,
Minister Rondermer, would join the Israeli delegation. We're also expecting
Jared Kushner and Steve Whitkoff, some two main envoys on
this in shamashef It's unclear if they've arrived or when
they would be arriving, but would appear that they, like
(19:45):
Minister Durhma of Israel, may be waiting to ensure that
there's no backsliding, reneging, time buying on the part of Hamas. Trump,
for his part, has said that he won't be patient
beyond a few days, so did Secretary Rubio. Everyon I
think would like to see this concluded, at least the
hostage stage concluded in the coming days, within this week.
Speaker 3 (20:07):
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making news from Wall Street to Washington and beyond.
Speaker 4 (20:14):
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Speaker 3 (20:20):
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Speaker 4 (20:35):
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Speaker 2 (20:52):
I'm Karen Moscow and I'm Nathan Hager.
Speaker 4 (20:55):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Day
Brea
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:09):
Good morning.
Speaker 3 (00:10):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Speaker 4 (00:15):
Karen, we begin with politics in Europe and a ramped
up political crisis in France. The country's Prime Minister, Sebastian
Lecorneo has resigned, just a day after President Emmanuel mccrowe
named a new government that was broadly criticized. We get
more from Bloomberg Jehan Dalbard in Paris.
Speaker 5 (00:32):
It is still a serious situation, but it is only
a political crisis yet and it doesn't look like a
fiscal non economic crisis. It will be for pro MACNC
to decigned a resignation. We think it's pretty unlikely, so
either he appoints a new prime minister or it called
for a new election, new general elections, But we don't
(00:55):
think it will solve the situation, because the political situation
is so fragmented in France that evening you general elections
once solved the problem.
Speaker 4 (01:03):
It's Bloomberg, Jean Delbarta. We are seeing an impact in
the markets this morning. Stocks in France are down one
point seven percent.
Speaker 3 (01:10):
Well, Nathan, we turned out to the latest developments to
end the war in the Middle East. Israel and Hamas
are preparing for indirect negotiations in Egypt, as hopes are
rising for a possible ceasefire in Gaza began more with
the Bloomberg's Dan Williams in Jerusalem.
Speaker 6 (01:24):
Well, we have delegations converging on Egypt the Red Sea
result of Charmoche. There will be more proximity talks. Abbas
will never engage directly with Israel, so there'll be mediation
by the Egyptians by a Katari technical team, which is
also expected in Kato. You remember, along with Egypt, those
were the two Arab powers that have mediated previous cease files.
(01:48):
But now what's being discussed is a peace plan put
forward by President Trump last week. Peace meaning that this
will not just be a self interested, time bound, cessational
suspension of hostilities, but an end to the war and
according to the plan, an end to Hamas institutionally in
(02:09):
the Gaza strip.
Speaker 3 (02:10):
And Bloombergs D and Williams in Jerusalem says a swap
of Israeli hostages and Palestinian prisoners would happen immediately upon
securing an agreement. While Hamas's disarmament would come in a
second stage.
Speaker 4 (02:22):
Turning back to the US now, Karen, it is the
sixth day of the federal government shutdown, and the White
House is signaling the first rounds of federal layoffs could
begin as soon as today. Government worker unions have found
an emergency request with a federal judge in San Francisco
to try to keep that from happening. President Trump was
asked about his job cut plans on his way back
from a Navy celebration in Virginia.
Speaker 7 (02:43):
Tek, you place right now, and it's all because of
the Democrats. The Democrats are causing the loss of a
lot of jobs with their it's a shutdown. It's there shutdown,
not our shutdown. It's there shutdown.
Speaker 4 (02:55):
Well, despite President Trump's comments, it's not immediately clear if
layoffs have taken place. Meantime, the Senate is set to
vote again today on a stopgap spending bill that has
failed four times before. Senate Minority Leader Chuck Schumer says
House Speaker Mike Johnson's refused to negotiate with Democrats on
extending healthcare subsidies.
Speaker 8 (03:13):
We've tried forty five days, and forty five days and
forty five days.
Speaker 2 (03:17):
From March on.
Speaker 8 (03:18):
We asked them to vote on it three times, the
Republicans in the Senate, they voted.
Speaker 2 (03:23):
No three times.
Speaker 4 (03:24):
But Speaker Johnson says there's time to negotiate once the
shutdowns over.
Speaker 9 (03:28):
The funding runs out in December thirty first. The month
of October is a critical time for us to get
to this, but we can't when Chuck Schumer keeps voting
to shut the government down for political reasons.
Speaker 4 (03:39):
Speaker Johnson and Leader Schumer appeared on CBS's Face to
the Nation heard Sundays on Bloomberg Radio.
Speaker 3 (03:44):
Well Nathan, a federal judge, has temporarily blocked the Trump
administration from deploying any National Guard troops to Oregon during
protests against an immigration crackdown. US District Judge Karen Immergut,
at Trump appointee, issued a temporary order late Sunday that
will launch at least fourteen days holding the administration's plan
to deploye hundreds of troops from California and Texas to Portland.
Speaker 2 (04:07):
Back to the markets now Karen.
Speaker 4 (04:09):
Stocks in Japan surge to an all time high as
Sanai Takaichi, a pro stimulus conservative, is poised to become
Japan's first female prime minister. While equity investors embraced the news,
bond markets did not longer dated Japanese bonds slid, and
we get more from Bloomberg's sharing on in Tokyo.
Speaker 10 (04:29):
We know that Sanaa Takaichi is a nationalist. We know
that she's a fan of Margaret Thatcher, a fan of
heavy metal music as well. But it's really the pro
growth policies that Santata Kaichi has talked about that is
really the focus for investors. She's talked about the bojspezy
monetary policy toned down her rhetoric during this election campaign,
(04:49):
but we know that she wants to continue expanding fiscal policy.
She's promised cash handel's tax rebates, hinting at raising the
tax free income allowance as well.
Speaker 4 (04:59):
Bloomberg sherry On in Tokyo, Japan's Nike index surged four
and three quarters percent.
Speaker 6 (05:04):
Nathan.
Speaker 3 (05:05):
Here in the US, futures are higher as who begin
a new trading week. The S and P five hundred
sits at an all time high, coming off six straight
days of gains. Amy Wu Silverman is head of Derivative
Strategy for RBC.
Speaker 11 (05:16):
Here we are with overall, with markets at all time
highs SKEW is relatively low. You know, all the hedges
that had been placed were not monetized because the markets
kept going up. And when I talked to investors, they say,
this just feels like the most reluctant rally.
Speaker 3 (05:32):
And RBC's Amy wu Silverman the S and P five
hundred is that more than fourteen percent so far this year.
Speaker 4 (05:38):
And this morning Karen Bloomberg Economics is out with its
latest outlook for global interest rates, and we get the
details on that from Bloomberg's John Tucker.
Speaker 12 (05:46):
Good morning, John and Nathan. The forecast highlights a significant difference.
The US will be cutting rates and much of Europe
will stay put. According to Bloomberg Economics, the Fed's going
to follow up it's cut last month with two more
by year end, and continue with quarterly cuts in the
first nine months of twenty twenty six. By contrast, Western
European central banks are forecast to be on hold. I
(06:08):
Fed officials next to gather at the end of the month.
The FOMC is in something of a bind if they
cut rates too fast. The long predicted acceleration in inflation
from tariffs could materialize. By not cutting fast enough, the
labor market could quickly go south. Meantime, the European Central
Bank officials have made it clear they're comfortable with rates
where they are at present, concluding that inflation won't stray
(06:31):
too far from their two percent target. In New York,
on John Tucker Bloomberg Radio, All.
Speaker 3 (06:36):
Right, John, thank you. In company news, Boeing may soon
be increasing its manufacturing output. Bloomberg News has learned Boeing,
as guiding suppliers at seven thirty seven max output could
reach a forty two jet monthly tempo as early as October.
To reach the first step in returning seven thirty seven
output to pre COVID levels, Boeing must still convince the
FAA that its factories and suppliers can keep pace while
(06:59):
maintaining qualities. 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.
Speaker 13 (07:08):
Michael, good morning, Good morning, Karen. The Supreme Court's termed
agends today. The High Court we'll hear a number of
cases this year, some on its emergency docket concerning the
limits on executive authority of the president in situations involving
the firing of agency heads and imposing tariffs without congressional approval.
Last term, the Supreme Court addressed the scope of nationwide
(07:31):
injunctions as applied to the Birthright Citizenship Order. Now, the
justices potentially could be taking up whether that is constitutional.
Two men accused of setting a Boston police cruiser on
fire are scheduled to be in court today. It comes
after a group looking to race on the city streets
over the weekend. Cops arrived to break up the crowd
(07:52):
of more than one hundred people on Massachusetts Avenue in
Tremont Street. Several vehicles were blocking the intersections. They were
ready to race and broke it up, and that's when
the violence began. Someone smashed the back windshield. Officers came
out of the vehicle, fireworks were thrown inside, and the
crewiser burst into flames. Two people from Rhode Island were arrested,
(08:13):
but Boston Police Commissioner Michael Cox expects there will be more.
Speaker 3 (08:17):
We will get every video and every piece of evidence
we can to find every individual that was involved.
Speaker 13 (08:22):
The officers were not injured. At least five people were
killed after Russia launched drones, missiles, and guided aerial bombs
at Ukraine overnight in a major attack that officials there
said target at civilian infrastructure. Ukrainian President Vladimir Zelenski says
Moscow sent over fifty ballistic missiles and about five hundred
(08:42):
drones into nine regions. It's Breast cancer Awareness Month and
time to remind people about the importance of early detection,
starting with the very first breast exam. Doctor Darien Sutton
says men can get breast cancer as well if you have.
Speaker 14 (08:59):
A family history, if you have a genetic risk. It's
not just for women, it's for all humans. If you
have that BRCA gen you need to talk to your
doctor about additional screening.
Speaker 2 (09:07):
But knowing the symptoms.
Speaker 14 (09:08):
If there is a change in your chest, if you
have a new lump, if there's a change in your nipple,
or there's any concerning signs, you need to talk to
your doctor to get evaluated.
Speaker 13 (09:17):
Doctor Sutton spoke to ABC Global News twenty four hours
a day and whatever you want it with Bloomberg News
now not Michael Barr and this is Bloomberg here.
Speaker 2 (09:25):
Thanks Michael all the time.
Speaker 3 (09:26):
Now for our Bloomberg Sports Update, and for that we
bring in John Stashauer.
Speaker 2 (09:31):
Thanks Darren.
Speaker 8 (09:31):
The Toronto Blue Jays after winning Game one of the
Alds ten to one, one Game two over the Yankees
thirteen to seven, so Toronto will take a two to
nothing series lead to New York. Seattle beat Detroit three
to two. That series is tied at one and upset.
In Sunday night football at Buffalo, New England won twenty
three to twenty. Philadelphia blew a two touchdown lead and
lost at home to Denver twenty one to seventeen. So
(09:54):
there are no undefeated teams left in the NFL. Is
only one winless team, that's the Jets. That's for Bloomberg's
What's It's Update.
Speaker 3 (10:02):
Stay with us more from Bloomberg Daybreak coming up after this.
Speaker 1 (10:10):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 2 (10:18):
This is Bloomberg Daybreak.
Speaker 4 (10:20):
Good morning, I'm Nathan Hager. The political crisis in France
has hit a whole new level. The country's Prime Minister,
Sebastian Lecornow, has resigned less than twenty four hours after
President Emanuel McCrone named a new cabinet that drew criticism
from seemingly all sides, including from some within it. For
the very Latest were joined by Bloomberg Daybreak, euro banker
(10:40):
Stephen Carroll, Stephen, good Morning. I'm honestly losing track of
how many prime ministers France has had in just this year.
Speaker 2 (10:47):
What did lecornew in Good Morning.
Speaker 15 (10:51):
Good Morning, Karen and Nathan look, they says the now
the shores is tenure for a prime minister. That's a
record that it has only been held since last a seven,
when you might remember Michelle Barnu went, but Sebastian Lecornu
has gone after twenty seven days in the job and
just fourteen hours after he unveiled his new cabinet, which
is also the shortest in history as well. This is
(11:13):
the same problem that has bedeviled every French prime minister
since the National Assembly snap elections last summer. This is
a question around being unable to form a majority in parliament.
Sebastian Leconnu has been the third prime minister since that
fractured parliament was returned to try to build a coalition.
He's been speaking in the past hour outside his office
(11:34):
in Paris, talking about how he negotiated as well as
he could behind the scenes, he couldn't see signs that
he would be able to build a sufficient coalition to
pass a budget through parliament or indeed address many of
the other key political issues that France is facing. He
had promised not to use the constitutional override mechanism that
(11:56):
he has available to him to force the budget through parliament.
He'd told the other part he wanted to build a
compromise with them, but he says the other parties weren't
willing to agree, even though they had made some signs
in private that they were willing to soften on some
of their positions. There was no consensus to be built,
and that's why he decided to resign now. One of
the key difficulties he had was after unveiling his range
(12:18):
of ministers yesterday, is that one of his most important
partners in his very minority government, the center right Republicans Party,
They had already said they weren't happy with the lineup
of ministers that were announced, despite the fact that their
leader Brunovottayo kept his job as Interior Minister in the
reshuffle there, so they weren't unhappy partners. They were due
(12:39):
to hold a meeting around now to try and discuss
their position in a government, a government that no longer exists.
Speaker 4 (12:46):
So now that the corn New's out, it raises the
question once again about whether anybody is going to be
able to get a budget through this National Assembly, whether
anyone can be prime minister. We've had so many at
this point, so what are the options going forward to you.
Speaker 15 (13:02):
It's the same three options that we had a month ago,
that we had at the end of last year, and
that we had in September of last year. When prime
Minister or President Emanuel Macron has been picking prime ministers,
he can try again. He can pick somebody else from
his own political family or from a different political family
within the Parliament. We've talked many times over the past
few months about the key role the center left Socialist
(13:25):
Party played and whether or not they could be tempted
into government. The last time around, they set out a
very clear agenda of measures that weren't palatable to the
center or the center right. So that presents the same
problem even if you did let them lead a government,
as to how you would build a coalition for a budget.
So that's one choice, go back to find another prime
minister and try again. You can call elections to the
(13:47):
National Assembly, what Emmanuel Macron did in June of last year,
but the polls don't indicate that you would end up
with in any greater consensus in Parliament now than you
did before. Although arguably French people are as sick of
this political turmoil as the markets appear to be. The
third option very unlikely. Emmanuel Macro himself has ruled it out,
would be that he would resign and call an early
(14:09):
presidential election.
Speaker 2 (14:11):
Those are the options.
Speaker 15 (14:12):
They don't get any easier, and it's difficult to see
the path forward.
Speaker 4 (14:16):
Now, given the fact that President mccron appointed a cabinet
that didn't include too many changes. It does appear likely,
doesn't it that the President would try to stick it out.
But is he feeling any pressure at this point to
make some changes here?
Speaker 15 (14:33):
Ultimately yes, but the changes that he can make are
only going to produce it would appear limited results. Whether
he'll attempt again to go back to some of those
parties and build a coalition or which is what we
thought he was doing the last time around, build a
consensus around some sort of budget proposals before putting a
government into place as a question, but we need to
keep an eye on the markets and all of this
(14:54):
as well. We've had French stocks selling off, particularly French banks,
but those government bond yields part of the problem in
France's difficult budget calculus rising again and the spread between
French and German yields what we use as a gauge
of risk in Europe when it comes to how investors
are viewing French debth. That's widened to the widest since
last December, two political crises ago, if you're counting, and
(15:17):
that is an issue that will weigh on Emmanuel Macron's
mind because he knows there are a series of deadlines
approaching for a budget. One has to be sent to
Brussels to the European Commission for approval within the next
couple of weeks, and an effort to try and put
that together and to stop a position where we're going
to end up with a rollover budget at the end
of the year, with the pain that would inflict on
(15:38):
both French taxpayers and on the state, is one that
he'll be sure to try to avoid. But as they
say at this point there are no easy paths out
of this crisis.
Speaker 4 (15:47):
And to that point, Stephen, is you say the cat
comparis is down one point seven percent, So yeah, there
is pain in the market this morning as well. Thank
you for this, Stephen, for the update. That's Sploomberg day Break.
Europe banker Steve Carol with us this morning, Karen Nathan.
Speaker 3 (16:02):
We're coming up on two years since the Hamas attack
on Israel that sparked a devastating war in Gaza. President
Trump isserving both sides to seal the deal on his
plan and the conflict. Indirect talks are said to begin
today in Egypt Israelly Prime Minister Benjamin et Yah, who
says he thinks peace is possible.
Speaker 16 (16:19):
I hope it will happen, but I can't guarantee that
will happen, and so if it doesn't happen, what President
Trump has said is that he will back as will
completely in acting forcefully against Almas.
Speaker 3 (16:31):
And that was Israeli Prime Minister Benjamin Att Yeah, who
went an interview with year own News and joining us
this morning from Jerusalem as Bloomberg News reporter Dan Williams. Dan,
good morning, what do you make right away of those
comments from Netan Yahoo, is that any sign that peace
can be reached here.
Speaker 6 (16:48):
Well, it's either all. It's the President of the United
States Trump who described this deal, this proposal, as one
that would bring peace. He says peace off to three
thousand years of conflict. So he definitely sees an epical
opportunity here. Whether all that will be achieved maybe in doubt,
because right now what we have is a partial Hamas
(17:10):
agreement following a full embrace of the proposal buying it
now a partial Hamas agreement to enter into it, meaning
Hamas has said it's open to releasing.
Speaker 17 (17:21):
The releasing the remaining forty eight hostages, and yeah, the
remaining forty eight hostages, and then discussing the other clauses
of the proposal.
Speaker 6 (17:32):
Hamas's misgivings are over the demand that it relinquish its weaponry,
that it fully relinquished power. Effectively, this proposal would see
Hamas ousted from the Gaza Strip and end of Hamas
institutionally in exchange for the physical survival of the remaining
Hamas members, who would presumably be offered an amnesty. So
(17:53):
it would appear that all parties are getting together, they
don't want to miss up an opportunity for that hostage release.
But making quite clear, and he does have vocal support
for Trump on this, that if Hamas doesn't get with
a program for what remains of the plan, Israel is
ready to redouble its attacks in the Gaza strip, where
it already controls something between seventy and eighty percent of
(18:16):
the territory, a territory that's really been laid ruined by
this two year old war that the Israel is prepared
to go in and it is words finish the job
by effectively crushing Hamas militarily and seeing an end to
that regime.
Speaker 3 (18:31):
Yeah, and their talks are going on today. Who is
taking part in these talks today specifically.
Speaker 6 (18:37):
Well, we already have the Hamas delegation there. It's led
by the de facto leader of outside Gaza, a man
who was actually out of public site for a number
of weeks because he was among the leaders of Hamas
that were targeted in a failed Israeli assassination strike in Cutter.
Though the capital of cut Cutter, like Egypt, has been
(18:59):
mediating which being Hamas in Israel during this war. So
he has now led this delegation to Egypt, specifically the
Red Sea resort of Charamelschet in the coming hours. We're
expecting in an Israeli delegation, a working delegation to be
out there. Basically, what we're waiting for here, all these
relies are waiting for is a sign that Hamas really
(19:21):
is on board with and able to deliver those forty
eight hostages, at which point Nathaniel's top advisor, Strategic Affairs,
Minister Rondermer, would join the Israeli delegation. We're also expecting
Jared Kushner and Steve Whitkoff, some two main envoys on
this in shamashef It's unclear if they've arrived or when
they would be arriving, but would appear that they, like
(19:45):
Minister Durhma of Israel, may be waiting to ensure that
there's no backsliding, reneging, time buying on the part of Hamas. Trump,
for his part, has said that he won't be patient
beyond a few days, so did Secretary Rubio. Everyon I
think would like to see this concluded, at least the
hostage stage concluded in the coming days, within this week.
Speaker 3 (20:07):
This is Bloomberg Daybreak, Your Morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 4 (20:14):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 3 (20:20):
You can also listen live each morning starting at five
am Wall Street Time on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Speaker 4 (20:35):
Plus listen coast to coast on the Bloomberg Business app
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Speaker 3 (20:41):
And don't forget to subscribe to Bloomberg News Now. It's
the latest news whenever you want it in five minutes
or less. Search Bloomberg News Now on your favorite podcast
platform to stay informed all day long.
Speaker 2 (20:52):
I'm Karen Moscow and I'm Nathan Hager.
Speaker 4 (20:55):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Day
Brea
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