October 1, 2025 • 15 mins
On today's podcast:
1) Congress blew past a midnight funding deadline, triggering the US government’s first shutdown in nearly seven years — and the third under President Trump. The White House’s budget office ordered agencies to begin executing their plans for a funding lapse, shuttering the government aside from essential duties, disrupting the jobs of hundreds of thousands of Americans and upending many public services.
2) The Congressional Budget Office estimates that about 750,000 employees will be furloughed at a cost per day of $400 million in lost compensation. President Trump has also threatened to use the shutdown to fire federal workers, but agency plans for the lapse in funding didn’t specify any measures for terminations. With key economic reports on hold, traders fear the loss of visibility will leave markets in the dark on the outlook for monetary policy. The immediate reports at risk are Thursday’s weekly jobless claims and the October 3rd release of September’s nonfarm payrolls.
3) The White House pulled the nomination of EJ Antoni to lead the Bureau of Labor Statistics, throwing the leadership of the critical data agency into further disarray after President Trump fired the former commissioner. A White House official said that the administration looked forward to nominating a new candidate soon. Antoni was slated to appear before a Senate committee for a confirmation hearing for the BLS commissioner role, which is the only political appointee in an agency of roughly 2,000 people.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
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 2 (00:15):
Karen, we begin with deadlock in DC. Congress has blown
past a midnight funding deadline to trigger the first government
shutdown in nearly seven years. Democrats and Republicans remain in
a spending standoff. The Democrats want to attach healthcare and
other policy changes to a stopgap spending bill. Senate Minority
Leader Chuck Schumer is blaming the majority party.
Speaker 4 (00:38):
Republicans once again rejected democrats proposals to avoid a shutdown,
fixed healthcare premiums and spare Americans the calamity of skyrocketing
through the roof healthcare costs.
Speaker 2 (00:51):
Senate Minority Leader Chuck Schumer says unless Congress act Obamacare,
tax credits will expire at the end of the year,
in premiums will spike. Majority Leader John Thune says Democrats
are to blame.
Speaker 5 (01:02):
Democrats may have chosen to shut down the government tonight,
but we can reopen it tomorrow. All it takes is
a handful of Democrats to join Republicans to pass the clean,
non partisan funding bill that in front.
Speaker 2 (01:14):
Of US Senate Majority Leader John Thune and his fellow
Republicans needed at least eight Democrats to support the funding bill.
Only three voted, with all but one Republican in favor
of it last night.
Speaker 3 (01:25):
Nathan, the government shutdown means key services for Americans and
pay for federal workers are suspended. President Trump is tying
the healthcare funding stand off to immigration.
Speaker 6 (01:36):
They wanted to be able to take care of people
that have come into our country illegally, and no system
can handle that. And so we're totally opposed on that.
But we can't take care.
Speaker 7 (01:46):
We just can't do it.
Speaker 6 (01:46):
I'd love to do everybody, I'd love to do.
Speaker 8 (01:48):
The whole world, but.
Speaker 6 (01:49):
Our country can't handle people that come into our country illegally.
Speaker 3 (01:53):
President Trump spoke to reporters from the White House a lawn.
He's suggesting his administration will use this shutdown to conduct
mass lay offs of federal workers beyond temporary furloughs. The
Congressional Budget Office estimates about seven hundred and fifty thousand
federal employees will be sidelined each day the government is
shut down.
Speaker 2 (02:10):
And Karen Bloomberg Economics estimates the shutdown could send the
unemployment rate from four point three to four point seven percent.
That's if it lasts for three weeks, and those furloughed
workers count as temporarily unemployed. Historically, much of the economic
impact from shutdowns has been recouped after it ends, but
during the last one, the Congressional Budget Office estimated the
US economy failed to recover three billion of the eleven
(02:32):
billion dollars at lost in overall output.
Speaker 3 (02:35):
Well Nathan us Dock Index futures are slipping with the
start of the first government shutdown in nearly seven years.
We get more with Bloomberg's John Tucker John Good Morning, Hey.
Speaker 9 (02:44):
Good morning, Karen.
Speaker 10 (02:45):
Traders say if the shutdown stretches from days to weeks
and could intensify concern over an economic slowdown and drive
treasury yields and stocks lower. Well, the shutdown also means
that key economic reports they're on hold, that includes Friday's
critical jobs report, and traders fear that the loss of
visibilities is going to lead markets in the dark and
the outlook for monetary policy from the Fed. Daniel Polliot
(03:07):
oh Tree Capital Management sees it this way.
Speaker 11 (03:10):
In the past, shutdowns have had a limited effect on
bonds and stocks, but with valuations so stretched in equities today,
this time potentially could be different.
Speaker 10 (03:22):
Well, non essential fedal workers will be furlough. The Trump
administration has said they're looking to make some of those
cuts permanent, and that could create a shock, just as
FED policy makers are focusing on the labor market in
New York, John Tucker, Bloomberg.
Speaker 2 (03:36):
Radio, Okay, John, thank you, speaking of the labor market.
The White House has withdrawn the nomination of EJ. And
Tony to lead the Bureau of Labor Statistics. His nomination
was seen as an attempt by the President to gain
control over the agency responsible for that key economic data,
including the monthly jobs report and the Consumer Price indexis
is used to measure inflation. Bloomberg's Miles Miller has more
(03:59):
on the surprise reversal.
Speaker 5 (04:00):
E j.
Speaker 12 (04:00):
Antonio was just to partisan from the Heritage Foundation, which
has a lot of connections to the current Trump White House,
and surely that he was just to partisan, and in
addition to that that they did not feel he would
have a smooth sailing on Capitol Hill.
Speaker 2 (04:20):
Bloomberg's Miles Miller ads the Senate had not yet set
a date for a confirmation hearing.
Speaker 3 (04:25):
Nathan as traders remain in the dark with economic data.
Should the shut down carry on, they may rely more
heavily on fed's speak. And we heard from Chicago Fed
President Austin Goulsby yesterday discussing the impact of tariffs on
interest rates.
Speaker 13 (04:39):
I thought rates are going to come down in that environment,
and I was saying I thought they had a fair
bit of ways to go when they announced the tariffs
at those kind of rates, especially in manufacturing, also in agriculture.
It was the hair on fire kind of moment where
(05:01):
a lot of folks in the in various manufacturing industries
were saying, we can't if these are the rates, we're
not going to survive. We're going to see a real
closing out.
Speaker 3 (05:11):
Austin Golesby spoke at an agricultural conference hosted by the
Chicago Fed. He also expressed concern about some government official
supporting the idea of giving the Trump administration the power
to influence interest rates.
Speaker 2 (05:23):
While the standoff continues on Capitol Hill, Karen, President Trump
says his administration is close to ending a standoff with
Harvard and finalizing a five hundred million dollar deal. Speaking
in the Oval Office, alongside Education Secretary Linda McMahon. The
President explained what Harvard plans to do once that agreement
is reached.
Speaker 6 (05:42):
Well in the process of getting very close, and Linda's
finishing up the final details, and they'd be paying about
five hundred million dollars and they'll be operating trade schools.
They're going to be teaching people how to do AI
and lots of other things.
Speaker 2 (05:56):
President Trump's deal with Harvard would end one of his
highest profile class with American universities. It's not clear if
the settlement would include an independent monitor at something Columbia
University accepted in its own agreement.
Speaker 3 (06:08):
And finally, Nathan and Company news Pfizer has agreed to
cut some prices by up to eighty five percent and
sell directly to the public in the US. The move
allows Pfizer to avoid tariffs on the pharmaceutical industry for
three years and addresses President Trump's argument that Americans are
paying more for medicines and remarks heard here on Bloomberg.
Swiser CEO Albert Borla talked about the deal at the
(06:30):
White House.
Speaker 14 (06:31):
For years, other rich nations refused to pay the first
serve for the medical innovation, and as a result, Americans
had to assume this proportional cost on their soldiers. This
situation we all knew is not sustainable.
Speaker 3 (06:47):
Heiser CEO Albert Borlow is speaking alongside President Trump. Other
major drug makers are expected to follow the move. 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 Modica Rigs Monica, Good morning, Hey.
Speaker 9 (07:05):
Good morning, Karen.
Speaker 15 (07:05):
A federal judge says the Trump administration unconstitutionally targeted non
citizens for deportation over pro Palestinian protests. Bloomberg's Amy Morris
has that story from Washington.
Speaker 16 (07:17):
A federal judge in Boston ruled a US policy that
targets international students for removal on idiological grounds is unconstitutional,
violating the First Amendment. The judge says the policy was
arbitrary and capricious, and accused Homeland Security Secretary Christy Nome
and Secretary of State Marco Rubio of misusing their powers.
(07:37):
US District Judge William Young also ruled the administration violated
the Administrative Procedure Act, so a hearing on that is
to be scheduled later in Washington. Amy Morris Bloomberg Radio.
Speaker 15 (07:48):
President Trump says Hamas has a few days to accept
a peace proposal.
Speaker 9 (07:52):
He says, Israel's already agreed to.
Speaker 6 (07:55):
We're going to do about three or four days.
Speaker 11 (07:56):
We'll see how it is.
Speaker 6 (07:58):
All of the Arab country signed up, the Muslim country
is all signed up, zeels all signed up. We're just
waiting for Amas, and Amas is either going to be
doing it or not. And if it's not, it's going
to be a very set and.
Speaker 15 (08:12):
He says the deal would include the release of Palestinian
prisoners in exchange for hostages. Rescuers are scrambling now to
find survivors after a powerful magnitude six point nine earthquake
at the Philippines last night.
Speaker 9 (08:24):
At least sixty nine people have died.
Speaker 15 (08:27):
Meantime, forecasters watching two big storms in the Atlantic. Here's
Bloomberg's meteorologist Craig Allen.
Speaker 17 (08:34):
Hurricane Umberto is still in the Atlantic, a category one
with eighty mile per hour winds less than three hundred
miles away from Bermuda, but will ride up and over
Bermuda and stay away from the island except for the
rough surf and dangerous speech erosion and rip currents. Meanwhile,
Hurricane of Melda has become the more important storm with
eighty five mile per hour winds and is on a
(08:55):
track right now to directly hit the island of Bermuda
with winds that could exceed one hundred miles per hour.
May very well be a Category two.
Speaker 15 (09:03):
Global news twenty four hours a day and whenever you
want it with Bloomberg News.
Speaker 5 (09:06):
Now.
Speaker 9 (09:07):
I'm Monica Rix, and this is Bloomberg Karen Nathan, Thanks Monica.
Speaker 3 (09:11):
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
Speaker 9 (09:16):
Thanks Karon.
Speaker 8 (09:16):
The start of the baseball postseason three low scoring games,
and then the Dodgers beat the Reds ten to five
in LA. They hit five home runs, two by show
Heo Tony. The Red Sox beat the Yankees three to one.
Garrett Crochet at one point retired seventeen banners in a
row Detroit one two one in Cleveland, Derek scugelstruck at fourteen.
That comes with back to back home runs in the
fifth inning, beat San Diego three to one. The Angels,
(09:39):
another team that will need a new manager next season.
Ron Washington will not return. He didn't manage the second
half this past season after heart surgery. That's your Bloomberg
Sports update.
Speaker 3 (09:48):
Stay with us more from Bloomberg day Break coming up
after this.
Speaker 1 (09:56):
Coast to coast on Bloomberg Radio nationwide, on and around
the world on Bloomberg dot Com and the Bloomberg Business Appum.
Speaker 9 (10:05):
This is Bloomberg Daybreak.
Speaker 2 (10:06):
Good morning, I'm Nathan Hageren. For the first time in
nearly seven years, a government shutdown is underway in Washington.
But even before the funds lapsed just after midnight, the
finger pointing had been well underway in the Senate.
Speaker 5 (10:20):
The Democrat caucus here in town in the Senate has
chosen to shut down the government over a clean, non
partisan funding bill.
Speaker 4 (10:28):
Republicans are plunging America into a shutdown, rejecting by partisan talks,
pushing a partisan bill and risking America's healthcare.
Speaker 2 (10:39):
And that was Senate Majority Leader John Thune and Minority
Leader Chuck Schumer hours before this latest shutdown took effect.
Joining us this morning, Terry Haynes, the founder of Pangaea Policy. Terry,
good morning. This is the first shutdown in nearly seven years,
but certainly not the first government shutdown ever. Will this
one be any different.
Speaker 7 (10:59):
Good morning, Hi, Good morning, Nathan. I think it will
not be a lot different in the sense that it
won't be very long, and in two weeks everybody will
have forgotten what the fight was about, and there was
very unlikely to be much economic impact. One major bank
(11:19):
came out with a very good study that showed that
of the fourteen shutdowns that happened since Reagan became president
so forty five years ago, in ten of them, the
S and P was up from the time that the
shutdowns started to the time it ended. So I think
it's unlikely to have any lasting economic impact or markets impact,
(11:40):
that's for sure.
Speaker 2 (11:40):
Well, how do you see this playing out, because in
the moments leading up to this, both sides seemed pretty
dug in, particularly the Democrats when it comes to their
demands for healthcare spending in a stopgap.
Speaker 7 (11:53):
I think a couple of things. I think that firstly,
you know I've said to you before. I think both
alreadys want to shut down for political reasons and for
different political reasons. Democrats need to show some fight and
some resistance to the bad Orange Man, so they're doing that.
I also think it's not going to be a long
one for a couple of reasons. One is that, uh,
(12:15):
you know, all all Democrats need. Democrats are the ones
doing the asking, so I'm not being partisan here. They
have the more complicated position. Republicans just want to keep
things open. Democrats want stuff. They say they want the
healthcare stuff. All they need to do is to declare
victory is get negotiations with the Republicans. Republicans have already
indicated they're interested in doing that, just not on this bill.
(12:38):
So that's a fairly easy win. Beyond that, you know,
you can already see the cracks in Schumer's side. You
had three defections yesterday Fetterman, Cortes, Mastow, and King, who's
independent but caucuses with Democrats. And the longer this goes on,
the more pressure there will be from public employee unions,
(13:05):
who are big supporters of Democrats to want to bring
those folks back. So there's going to be a lot
of pressure on the Maryland and Virginia senators who represent
hundreds of thousands of those folks, and they'll be pushing
for some sort of resolution. After that, you only need
one more vote in order to keep the government open.
So you know, I think the tide goes out pretty
quickly on Senator shum Or, unless unless he tries to
(13:28):
declare victory here.
Speaker 2 (13:29):
You mentioned the Maryland and Republican senators obviously constituents of
a large number of federal employees there. Do you think
this indication from President Trump that he could use this
shutdown to enact mass federal layoffs could lead to some
cracks here? Is that what you're getting at?
Speaker 3 (13:47):
Oh?
Speaker 7 (13:47):
Oh, exactly? So, yes, I mean there is a threat
to government employees, you know, employment status that hasn't existed before.
So far, the administration has not kind of pulled the
ultimate trigger on this, instead talking about furloughing people instead
of riffing or you know, completely getting rid of positions.
(14:09):
But you know, that's a distinction without much difference to
people who are very concerned about their jobs. You know,
I don't anticipate that there's you're going to have a
situation where the four Democratic senators from those two states
are going to you know, publicly break with Schumer or
anything like that. But there's going to be an awful
lot of pressure brought to bear to try to figure
(14:31):
out something that helps and improves the status of those
those public workers.
Speaker 3 (14:38):
This is Bloomberg Daybreak, your morning podcast and the stories
making news from Wall Street to Washington and beyond.
Speaker 2 (14:45):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 3 (14:51):
You can also listen live each morning starting at five
am Wall Street Time on Bloomberg eleven three to zero
in New York, Bloomberg in ninety nine to one in Washington,
Berg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Speaker 2 (15:05):
Plus listen coast to coast on the Bloomberg Business app
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Speaker 3 (15:11):
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 and your favorite podcast
platform to stay informed all day long. I'm Karen Moscow.
Speaker 2 (15:24):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg day Break
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 2 (00:15):
Karen, we begin with deadlock in DC. Congress has blown
past a midnight funding deadline to trigger the first government
shutdown in nearly seven years. Democrats and Republicans remain in
a spending standoff. The Democrats want to attach healthcare and
other policy changes to a stopgap spending bill. Senate Minority
Leader Chuck Schumer is blaming the majority party.
Speaker 4 (00:38):
Republicans once again rejected democrats proposals to avoid a shutdown,
fixed healthcare premiums and spare Americans the calamity of skyrocketing
through the roof healthcare costs.
Speaker 2 (00:51):
Senate Minority Leader Chuck Schumer says unless Congress act Obamacare,
tax credits will expire at the end of the year,
in premiums will spike. Majority Leader John Thune says Democrats
are to blame.
Speaker 5 (01:02):
Democrats may have chosen to shut down the government tonight,
but we can reopen it tomorrow. All it takes is
a handful of Democrats to join Republicans to pass the clean,
non partisan funding bill that in front.
Speaker 2 (01:14):
Of US Senate Majority Leader John Thune and his fellow
Republicans needed at least eight Democrats to support the funding bill.
Only three voted, with all but one Republican in favor
of it last night.
Speaker 3 (01:25):
Nathan, the government shutdown means key services for Americans and
pay for federal workers are suspended. President Trump is tying
the healthcare funding stand off to immigration.
Speaker 6 (01:36):
They wanted to be able to take care of people
that have come into our country illegally, and no system
can handle that. And so we're totally opposed on that.
But we can't take care.
Speaker 7 (01:46):
We just can't do it.
Speaker 6 (01:46):
I'd love to do everybody, I'd love to do.
Speaker 8 (01:48):
The whole world, but.
Speaker 6 (01:49):
Our country can't handle people that come into our country illegally.
Speaker 3 (01:53):
President Trump spoke to reporters from the White House a lawn.
He's suggesting his administration will use this shutdown to conduct
mass lay offs of federal workers beyond temporary furloughs. The
Congressional Budget Office estimates about seven hundred and fifty thousand
federal employees will be sidelined each day the government is
shut down.
Speaker 2 (02:10):
And Karen Bloomberg Economics estimates the shutdown could send the
unemployment rate from four point three to four point seven percent.
That's if it lasts for three weeks, and those furloughed
workers count as temporarily unemployed. Historically, much of the economic
impact from shutdowns has been recouped after it ends, but
during the last one, the Congressional Budget Office estimated the
US economy failed to recover three billion of the eleven
(02:32):
billion dollars at lost in overall output.
Speaker 3 (02:35):
Well Nathan us Dock Index futures are slipping with the
start of the first government shutdown in nearly seven years.
We get more with Bloomberg's John Tucker John Good Morning, Hey.
Speaker 9 (02:44):
Good morning, Karen.
Speaker 10 (02:45):
Traders say if the shutdown stretches from days to weeks
and could intensify concern over an economic slowdown and drive
treasury yields and stocks lower. Well, the shutdown also means
that key economic reports they're on hold, that includes Friday's
critical jobs report, and traders fear that the loss of
visibilities is going to lead markets in the dark and
the outlook for monetary policy from the Fed. Daniel Polliot
(03:07):
oh Tree Capital Management sees it this way.
Speaker 11 (03:10):
In the past, shutdowns have had a limited effect on
bonds and stocks, but with valuations so stretched in equities today,
this time potentially could be different.
Speaker 10 (03:22):
Well, non essential fedal workers will be furlough. The Trump
administration has said they're looking to make some of those
cuts permanent, and that could create a shock, just as
FED policy makers are focusing on the labor market in
New York, John Tucker, Bloomberg.
Speaker 2 (03:36):
Radio, Okay, John, thank you, speaking of the labor market.
The White House has withdrawn the nomination of EJ. And
Tony to lead the Bureau of Labor Statistics. His nomination
was seen as an attempt by the President to gain
control over the agency responsible for that key economic data,
including the monthly jobs report and the Consumer Price indexis
is used to measure inflation. Bloomberg's Miles Miller has more
(03:59):
on the surprise reversal.
Speaker 5 (04:00):
E j.
Speaker 12 (04:00):
Antonio was just to partisan from the Heritage Foundation, which
has a lot of connections to the current Trump White House,
and surely that he was just to partisan, and in
addition to that that they did not feel he would
have a smooth sailing on Capitol Hill.
Speaker 2 (04:20):
Bloomberg's Miles Miller ads the Senate had not yet set
a date for a confirmation hearing.
Speaker 3 (04:25):
Nathan as traders remain in the dark with economic data.
Should the shut down carry on, they may rely more
heavily on fed's speak. And we heard from Chicago Fed
President Austin Goulsby yesterday discussing the impact of tariffs on
interest rates.
Speaker 13 (04:39):
I thought rates are going to come down in that environment,
and I was saying I thought they had a fair
bit of ways to go when they announced the tariffs
at those kind of rates, especially in manufacturing, also in agriculture.
It was the hair on fire kind of moment where
(05:01):
a lot of folks in the in various manufacturing industries
were saying, we can't if these are the rates, we're
not going to survive. We're going to see a real
closing out.
Speaker 3 (05:11):
Austin Golesby spoke at an agricultural conference hosted by the
Chicago Fed. He also expressed concern about some government official
supporting the idea of giving the Trump administration the power
to influence interest rates.
Speaker 2 (05:23):
While the standoff continues on Capitol Hill, Karen, President Trump
says his administration is close to ending a standoff with
Harvard and finalizing a five hundred million dollar deal. Speaking
in the Oval Office, alongside Education Secretary Linda McMahon. The
President explained what Harvard plans to do once that agreement
is reached.
Speaker 6 (05:42):
Well in the process of getting very close, and Linda's
finishing up the final details, and they'd be paying about
five hundred million dollars and they'll be operating trade schools.
They're going to be teaching people how to do AI
and lots of other things.
Speaker 2 (05:56):
President Trump's deal with Harvard would end one of his
highest profile class with American universities. It's not clear if
the settlement would include an independent monitor at something Columbia
University accepted in its own agreement.
Speaker 3 (06:08):
And finally, Nathan and Company news Pfizer has agreed to
cut some prices by up to eighty five percent and
sell directly to the public in the US. The move
allows Pfizer to avoid tariffs on the pharmaceutical industry for
three years and addresses President Trump's argument that Americans are
paying more for medicines and remarks heard here on Bloomberg.
Swiser CEO Albert Borla talked about the deal at the
(06:30):
White House.
Speaker 14 (06:31):
For years, other rich nations refused to pay the first
serve for the medical innovation, and as a result, Americans
had to assume this proportional cost on their soldiers. This
situation we all knew is not sustainable.
Speaker 3 (06:47):
Heiser CEO Albert Borlow is speaking alongside President Trump. Other
major drug makers are expected to follow the move. 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 Modica Rigs Monica, Good morning, Hey.
Speaker 9 (07:05):
Good morning, Karen.
Speaker 15 (07:05):
A federal judge says the Trump administration unconstitutionally targeted non
citizens for deportation over pro Palestinian protests. Bloomberg's Amy Morris
has that story from Washington.
Speaker 16 (07:17):
A federal judge in Boston ruled a US policy that
targets international students for removal on idiological grounds is unconstitutional,
violating the First Amendment. The judge says the policy was
arbitrary and capricious, and accused Homeland Security Secretary Christy Nome
and Secretary of State Marco Rubio of misusing their powers.
(07:37):
US District Judge William Young also ruled the administration violated
the Administrative Procedure Act, so a hearing on that is
to be scheduled later in Washington. Amy Morris Bloomberg Radio.
Speaker 15 (07:48):
President Trump says Hamas has a few days to accept
a peace proposal.
Speaker 9 (07:52):
He says, Israel's already agreed to.
Speaker 6 (07:55):
We're going to do about three or four days.
Speaker 11 (07:56):
We'll see how it is.
Speaker 6 (07:58):
All of the Arab country signed up, the Muslim country
is all signed up, zeels all signed up. We're just
waiting for Amas, and Amas is either going to be
doing it or not. And if it's not, it's going
to be a very set and.
Speaker 15 (08:12):
He says the deal would include the release of Palestinian
prisoners in exchange for hostages. Rescuers are scrambling now to
find survivors after a powerful magnitude six point nine earthquake
at the Philippines last night.
Speaker 9 (08:24):
At least sixty nine people have died.
Speaker 15 (08:27):
Meantime, forecasters watching two big storms in the Atlantic. Here's
Bloomberg's meteorologist Craig Allen.
Speaker 17 (08:34):
Hurricane Umberto is still in the Atlantic, a category one
with eighty mile per hour winds less than three hundred
miles away from Bermuda, but will ride up and over
Bermuda and stay away from the island except for the
rough surf and dangerous speech erosion and rip currents. Meanwhile,
Hurricane of Melda has become the more important storm with
eighty five mile per hour winds and is on a
(08:55):
track right now to directly hit the island of Bermuda
with winds that could exceed one hundred miles per hour.
May very well be a Category two.
Speaker 15 (09:03):
Global news twenty four hours a day and whenever you
want it with Bloomberg News.
Speaker 5 (09:06):
Now.
Speaker 9 (09:07):
I'm Monica Rix, and this is Bloomberg Karen Nathan, Thanks Monica.
Speaker 3 (09:11):
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
Speaker 9 (09:16):
Thanks Karon.
Speaker 8 (09:16):
The start of the baseball postseason three low scoring games,
and then the Dodgers beat the Reds ten to five
in LA. They hit five home runs, two by show
Heo Tony. The Red Sox beat the Yankees three to one.
Garrett Crochet at one point retired seventeen banners in a
row Detroit one two one in Cleveland, Derek scugelstruck at fourteen.
That comes with back to back home runs in the
fifth inning, beat San Diego three to one. The Angels,
(09:39):
another team that will need a new manager next season.
Ron Washington will not return. He didn't manage the second
half this past season after heart surgery. That's your Bloomberg
Sports update.
Speaker 3 (09:48):
Stay with us more from Bloomberg day Break coming up
after this.
Speaker 1 (09:56):
Coast to coast on Bloomberg Radio nationwide, on and around
the world on Bloomberg dot Com and the Bloomberg Business Appum.
Speaker 9 (10:05):
This is Bloomberg Daybreak.
Speaker 2 (10:06):
Good morning, I'm Nathan Hageren. For the first time in
nearly seven years, a government shutdown is underway in Washington.
But even before the funds lapsed just after midnight, the
finger pointing had been well underway in the Senate.
Speaker 5 (10:20):
The Democrat caucus here in town in the Senate has
chosen to shut down the government over a clean, non
partisan funding bill.
Speaker 4 (10:28):
Republicans are plunging America into a shutdown, rejecting by partisan talks,
pushing a partisan bill and risking America's healthcare.
Speaker 2 (10:39):
And that was Senate Majority Leader John Thune and Minority
Leader Chuck Schumer hours before this latest shutdown took effect.
Joining us this morning, Terry Haynes, the founder of Pangaea Policy. Terry,
good morning. This is the first shutdown in nearly seven years,
but certainly not the first government shutdown ever. Will this
one be any different.
Speaker 7 (10:59):
Good morning, Hi, Good morning, Nathan. I think it will
not be a lot different in the sense that it
won't be very long, and in two weeks everybody will
have forgotten what the fight was about, and there was
very unlikely to be much economic impact. One major bank
(11:19):
came out with a very good study that showed that
of the fourteen shutdowns that happened since Reagan became president
so forty five years ago, in ten of them, the
S and P was up from the time that the
shutdowns started to the time it ended. So I think
it's unlikely to have any lasting economic impact or markets impact,
(11:40):
that's for sure.
Speaker 2 (11:40):
Well, how do you see this playing out, because in
the moments leading up to this, both sides seemed pretty
dug in, particularly the Democrats when it comes to their
demands for healthcare spending in a stopgap.
Speaker 7 (11:53):
I think a couple of things. I think that firstly,
you know I've said to you before. I think both
alreadys want to shut down for political reasons and for
different political reasons. Democrats need to show some fight and
some resistance to the bad Orange Man, so they're doing that.
I also think it's not going to be a long
one for a couple of reasons. One is that, uh,
(12:15):
you know, all all Democrats need. Democrats are the ones
doing the asking, so I'm not being partisan here. They
have the more complicated position. Republicans just want to keep
things open. Democrats want stuff. They say they want the
healthcare stuff. All they need to do is to declare
victory is get negotiations with the Republicans. Republicans have already
indicated they're interested in doing that, just not on this bill.
(12:38):
So that's a fairly easy win. Beyond that, you know,
you can already see the cracks in Schumer's side. You
had three defections yesterday Fetterman, Cortes, Mastow, and King, who's
independent but caucuses with Democrats. And the longer this goes on,
the more pressure there will be from public employee unions,
(13:05):
who are big supporters of Democrats to want to bring
those folks back. So there's going to be a lot
of pressure on the Maryland and Virginia senators who represent
hundreds of thousands of those folks, and they'll be pushing
for some sort of resolution. After that, you only need
one more vote in order to keep the government open.
So you know, I think the tide goes out pretty
quickly on Senator shum Or, unless unless he tries to
(13:28):
declare victory here.
Speaker 2 (13:29):
You mentioned the Maryland and Republican senators obviously constituents of
a large number of federal employees there. Do you think
this indication from President Trump that he could use this
shutdown to enact mass federal layoffs could lead to some
cracks here? Is that what you're getting at?
Speaker 3 (13:47):
Oh?
Speaker 7 (13:47):
Oh, exactly? So, yes, I mean there is a threat
to government employees, you know, employment status that hasn't existed before.
So far, the administration has not kind of pulled the
ultimate trigger on this, instead talking about furloughing people instead
of riffing or you know, completely getting rid of positions.
(14:09):
But you know, that's a distinction without much difference to
people who are very concerned about their jobs. You know,
I don't anticipate that there's you're going to have a
situation where the four Democratic senators from those two states
are going to you know, publicly break with Schumer or
anything like that. But there's going to be an awful
lot of pressure brought to bear to try to figure
(14:31):
out something that helps and improves the status of those
those public workers.
Speaker 3 (14:38):
This is Bloomberg Daybreak, your morning podcast and the stories
making news from Wall Street to Washington and beyond.
Speaker 2 (14:45):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 3 (14:51):
You can also listen live each morning starting at five
am Wall Street Time on Bloomberg eleven three to zero
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Speaker 2 (15:05):
Plus listen coast to coast on the Bloomberg Business app
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Speaker 3 (15:11):
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 and your favorite podcast
platform to stay informed all day long. I'm Karen Moscow.
Speaker 2 (15:24):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg day Break
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