Senate Advances Plan to End Shutdown; Trump Teases $2000 Tariff Dividend

On today's podcast:
1) Democrats entered the shutdown seeking to renew tax credits to stave off insurance premium price hikes and to show voters they have the stomach for hardball negotiations in President Trump’s Washington. As the record-long shutdown neared its end more than a month later, they failed to achieve either. A group of eight Democrats on Sunday broke with the rest of their party — including Senate Minority Leader Chuck Schumer — to vote with Republicans to advance a bill to re-open the government on the impasse’s 40th day. That plan doesn’t include the extension of the Affordable Care Act subsidies that Democrats staked their shutdown fight on. They did get a pledge for a separate vote on the health-care tax credits in the coming weeks, but the prospects of Democrats landing a win from that endeavor are far from certain.
2) More than 10,000 flights in the US were delayed or canceled on Sunday as snowy weather in Chicago added to the stress for airlines coping with a third day of US government-mandated restrictions on air travel. The bottlenecks were worst at New York’s airports, where federal officials imposed ground stops and ground delays to meter traffic. At LaGuardia Airport, more than half of departures were delayed, compared with 36% at Newark Liberty International Airport and 32% at John F. Kennedy International Airport, according to FlightAware. By late afternoon, 8,100 flights were delayed and 2,300 were canceled nationwide. Chicago’s O’Hare International Airport also faced hundreds of delays and cancellations as a winter storm threatened the airport, a major hub for United Airlines Inc. and American Airlines. About 190 flights were canceled at Delta Air Lines Inc.’s home base at Atlanta’s Hartsfield-Jackson International Airport.
3) Treasury Secretary Scott Bessent said President Trump’s suggestion that Americans may receive a tariff “dividend” of at least $2,000 could come via the tax cuts passed in his signature economic policy bill earlier this year. Bessent was asked on ABC’s This Week about a social media post by Trump earlier Sunday that derided people who oppose tariffs and said a “dividend of at least $2000 a person (not including high income people!) will be paid to everyone.” Trump has been stepping up his defense of his tariffs regime since the Supreme Court on Nov. 5 heard arguments for a suit to get them thrown out. Several justices seemed skeptical, raising the possibility many of the levies could be overturned, forcing more than $100 billion in refunds and taking away a centerpiece of his second term.

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Episode Transcript

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, The lift in futures this morning comes on signs that,
after forty one days, the longest government shutdown in US
history may be close to coming to an end.

Speaker 4 (00:25):
Like we're getting very close on the shutdown. We'll never
agreed to give any substantial money or any money too
really prisoners illegals to come into our country. Can I
think the Democrats understand that?

Speaker 2 (00:39):
That was President Trump speaking before the Senate voted sixty
to forty last night to advance a bill that would
fund most of the government through January thirtieth, while providing
full year funding for agriculture, veterans Affairs, and Congress. Eight
moderate Democrats broke with their party leaders to break the filibuster,
including Independent Angus King, who caucuses with Democrats. He says,
we're publicans weren't willing to budge on Democrats demand for

(01:02):
a deal on expiring health insurance subsidies.

Speaker 5 (01:05):
The question before us is how's the best way to
get there? And it was our judgment after six weeks
going on seven weeks of this shutdown that that path
wasn't working.

Speaker 2 (01:17):
It was Independent Senator Angus King of Maine. We get
more from Bloomberg's Jill Deesis.

Speaker 6 (01:22):
The moderate Democrats that the Republicans were able to sway
over to achieve this sixty forty vote say that they
were promised basically another vote on some Obamacare tax provisions
that was ultimately at the heart of the shutdown, So
that could come some time in December if that's what
was ultimately achieved here.

Speaker 2 (01:39):
Bloomberg's Jill Deesis reports it's still not clear how quickly
the shutdown will end. Even after this procedural step. The
Senate needs consent from all its members to end the
shutdown quickly. Any one of them could force days of delays.

Speaker 3 (01:51):
Nathan Mother shutdown continues. Millions of Americans are still facing
flight delays and uncertainty over government food aid. Now. A
federal speals court is ruled against the Trump administration and
it's bid to only partially fund a snap benefits while
it challenges a lower course order to fund the program
at one hundred percent. The Department of Agriculture and other
agencies have argued fully funding November snap benefits during the

(02:14):
shutdown would limit funds for other programs, but the appeals
court ruled that doesn't outweigh the harm of leaving tens
of millions of Americans without food as winter approaches.

Speaker 2 (02:24):
Now, the government shutdown is added to headaches for travelers
across the country. US airlines canceled more than twenty seven
hundred flights yesterday, mostly because of the shutdown and the
Federal Aviation Administration's order to reduce air traffic, but compounding
the problem was frigid weather, delaying thousands more flights. Bloomberg
meteorologist Craig Allen is tracking the latest weather pattern.

Speaker 7 (02:46):
The core of this unseasonably cold outbreak is plunging south
and east this morning, and it's going to bring subfreezing
temperatures to about three dozen states from the planes to
the East coast, and rather than rise, the mercury may
tumble all day, as much as twenty to thirty degrees
from highs on Sunday, so tonight's lows will be in
the twenties and thirties. It'll be felt from the Canadian
border all the way down to the Gulf Coast, with

(03:08):
numerous record lows expected in Texas, Louisiana, Mississippi, Alabama, even Florida,
and Lake Effect snow will also be a big problem
downwind of all the Great Lakes, but most notably running
down the entire length of Lake Michigan. It's going to
result in near treacherous to near impossible travel conditions, especially
in Chicago and its suburbs.

Speaker 2 (03:29):
That's Sploomberg meteorologist Craig Allen. Chicago's O'Hare International Airport is
a major hub for United and American airlines Nathan.

Speaker 3 (03:37):
President Trump suggested tariff revenue could be used to fund
payments of at least two thousand dollars to most Americans.
In a post on Truth's Social President Trump said that
the government would soon begin paying down the country's debt.
Treasury Secretary of Scott Besson says Trump's suggestion could come
through the tax cuts passed in the Economic Policy Bill
earlier this year.

Speaker 8 (03:57):
It could be just the tax decrease is that we
are seeing on the President's agenda. You know, no tax
on tips, no tax on overtime, no text and social
Security deductibility of auto loans. So you know, those are
substantial deductions that are being financed in the tax bill.

Speaker 3 (04:15):
Treasury Secretary Scott Besson made the comments on ABC's This Week,
and you can catch the program Sunday afternoons on Bloomberg.

Speaker 2 (04:21):
Radio and Karen. President Trump has reportedly pardoned Rudy Giuliani,
along with other people allegedly involved in attempts to overturn
the twenty twenty presidential election. Justice Department pardon attorney Ed
Martin posted a list on x of prominent Trump allies
who've gotten reprieves. It also includes attorney's Sidney Powell, Boris Epstein,
John Eastman, and former White House Chief of Staff Mark Meadows,

(04:42):
along with seventy two others. It does not include President Trump.
The pardon document states that explicitly.

Speaker 3 (04:48):
Well Nathan, there are Morris signs. Tensions between the US
and China continue to ease. China has added more than
a does in fentanyl precursors to a list of controlled
exports to the US, Mexico and Canada. The mos there's
a step and fulfilling Chain's pledged to combat the flow
of synthetic opioid ingredients to the US. Meanwhile, the Trump
administration has suspended a probe and to China's shipbuilding industry

(05:09):
for one year.

Speaker 2 (05:10):
Turning to the markets now, Karen, as we mentioned, futures
are higher on optimism the government shutdown is coming to
an end. SMP futures right now are up one percent,
Nasdaq futures up one and a half. Valerie Titel tracks
the markets for Bloomberg.

Speaker 9 (05:23):
Well, look, I think for many weeks we thought there
was really limited progress on the shutdown. We finally get
a breakthrough, and we're seeing a very positive reaction from
the equity market.

Speaker 10 (05:31):
Now, this all started on Friday.

Speaker 9 (05:33):
There was a steep reversal in the US equity market
into the close, and with futures following through this morning,
we've now essentially erased half of the drawdown in the
S and P five hundred. Last week was a really
bad week for the equity market. The Nasdaq had its
worst week since early April. The S and P five
hundred had a five percent draw down from all time

(05:53):
highs at the end of October.

Speaker 2 (05:56):
Bloomberg's Valerie Ttel says the S and P five hundred
had risen for three straight weeks weeks before last week's losses.

Speaker 3 (06:02):
Well, Nathan, several stock strategists say solid earnings will fuel
a market rally next year. Morgan Stanley's Michael Wilson says
there were clear signs that an Ernie's recovery was underway.
UBS strategists forecast the S and P five hundred will
hit a record five hundred points by the end of
twenty twenty six, and that's about an eleven percent gain

(06:22):
from current levels. And Oppenheimer's John Stoltzfuss says it's too
early to give up on ship makers and the outlook
for AI the.

Speaker 2 (06:30):
In company news, Karen Pfizer has won the bidding war
for the weight loss drug startup Met Sarah, securing the
ten billion dollar deal after Danish drug maker Nova Nordisks
said it did not plan to increase its offer. Met
Sarah cited a call from the Federal Trade Commission regarding
potential risks from proceeding with the proposed Novo deal structure.

Speaker 3 (06:49):
And there's a new boss at Diagio Nathan, the British
drinks giant has named Dave Lewis as the new CEO.
The former head of Tesco and Sheriff hally On is
set to take up the role at the start of
next year. The announcement comes just days after the British
Strange Giant lowered its full year outlook for sales and profit,
setting weak demand in China and the US and Diaggio

(07:09):
shares They are up about seven and a half percent
this morning. Time now for a look at some of
the other stories making news in New York and around
the world. And for that we're joined by Bloomber's Monica Ricks. Monica,
good morning, Good morning, Karen.

Speaker 11 (07:23):
President Trump wants a Justice Department now to investigate meat
packing companies. We get the details from Bloomberg's Amy Morris.

Speaker 10 (07:30):
In Washington, President Trump is accusing foreign owned meat packers
of driving up the price of beef in the US.
He asked the Department of Justice to open an investigation.
The president posted on social media that he wants a
probe into whether companies are driving up the price of
beef through quote collusion, price fixing, and price manipulation. Trump
announced the move days after his party suffered losses in

(07:53):
key elections in which the winning Democratic candidates focused on
the public's concerns about the cost of living in Washington.
Amy Morris, Bloomberg Radio.

Speaker 11 (08:02):
Later today, President Trump will hold a historic meeting at
the White House and welcome the new president of Syria.
Akmed al Sharah was once a leader of Al Qaida
in Iraq, but he severed ties with the terror organization
and later overthrew Syrian President Bashar Ala Sade. Edward Derejon
is a former US ambassador to Syria and Israel.

Speaker 4 (08:22):
If it's a question of national security interests, what happens
in Syria doesn't only affect the region itself.

Speaker 11 (08:29):
He says, it could affect relations with Israel and the
entire Middle East. President Trump became the first sitting president
to attend a regular season NFL game yesterday in half
a century, not since Carter in nineteen seventy eight. He
watched the Washington Commanders lose to the visiting Detroit Lyons.
And Blue Origin postponed a planned second flight of its

(08:49):
new Glen rocket yesterday in Florida due to weather conditions
and unspecified ground equipment issues. The company says it's now
reviewing opportunities for a new launch date and will eventually
and two probes to Mars to find out why it
lost its atmosphere. 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.

Speaker 3 (09:11):
Thanks Monica. Time now for our Bloomberg Sports update, and
for that we bring in John Stashauer.

Speaker 12 (09:16):
Thanks Karen. On an NFL Sunday, came the news of
the death of Paul Tagliabu at the age of eighty four.
He was the NFL commissioner from nineteen eighty nine to
two thousand and six. First Game of the Day, the
best game of the day, five league changes. In the
first game ever played in Berlin, Germany, the Colts beat
the Falcons in overtimes. Jonathan Taylor rush for two hundred
and forty four yards scored three touchdowns. Also passing away

(09:38):
Sunday was Lenny Wilkins, who's in the Basketball Hall of
Fame as both a player and coach. He was eighty eight.
That's your Bloomberg Sports update.

Speaker 3 (09:47):
Stay with us. More from Bloomberg day Break coming up
after this.

Speaker 1 (09:55):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and the world on Bloomberg dot Com and the Bloomberg
Business app. This is Bloomberg Daybreak.

Speaker 8 (10:05):
Good morning.

Speaker 2 (10:06):
I'm Nathan Hager. Now more than forty days into the
longest government shut down in US history, the Senate has
taken a major step to bring it to an end,
advancing a bill to reopen the government without the health
subsidy extension that Democrats had demanded. New Hampshire Senator Jean
Shaheen is one of the eight Democrats who broke ranks.

Speaker 13 (10:24):
I understand that not all of my Democratic colleagues are
satisfied with this agreement, but waiting another week or another
month wouldn't deliver a better outcome.

Speaker 2 (10:34):
It's New Hampshire Democrat Jean Shaheen, following the sixty forty
vote to advance this legislation in the Senate and for more.
We are joined by Bloomberg's Jill Desis. Jill good Morning,
walk us through the deal that was made between Democrats
and Republicans and what ultimately got these eight Democrats to crack.

Speaker 14 (10:53):
Good morning, Yes, Good morning, Nathan. So what ultimately happened
here was this deal only goes so far as funding
part of the government primarily Congress itself plus the Department
of Veterans Affairs, Department of Agriculture for the next year,
and then it funds the rest of the government agencies
through January thirtieth, just you know, kind of implying that,

(11:15):
you know, it's not going to be too much longer
until we're kind of back here again. But it does
you know, reach a deal at least then to fund
the government through that time. Also, there's some agreements here
about repaying for load workers, et cetera. So that's really
where we stand in terms of, you know, the crux
of the issue here, the issue that Democrats really kind
of had at the heart of why they were, you know,

(11:36):
with they were trying to double down on that idea
of extending those healthcare tax credits. What they've really only
gotten from the Republicans here is a pledge that there
will be a vote on that issue, on a bill
on that issue in December. So nothing in terms of
sort of like a long term sort of fulsome commitment there.
You really just have the opportunity for a vote sometime

(11:57):
next month. I mean, whether that actually ultimately lays out
in democrats favor, I think, but that's what you have
to see here. But you know, clearly, I mean the
fact that they did get these eight moderate Democrats on
board with them, I'm not sure that the rest of
the party is going to be too happy about that
kind of agreement. So that's kind of where we stand now.
They'll go in for another vote in the morning, but
that's and then you know the kind of page the

(12:18):
way for a House vote there. But that's kind of
where we stand.

Speaker 2 (12:21):
Yeah, that's I think that Senator Shaheen seemed to allude
to in that comment just there, with the fact that
the Democrats had sort of held out against this idea
of going forward with a promise of a vote on
the subsidies, what does that say about where this could
where this bill could go in the House.

Speaker 14 (12:41):
Yeah, I mean, look, it's a good question. So I
think in terms of, you know, where we ultimately end
up in the shutdown, I mean, I guess, you know,
the big difference here in the House is that I mean,
you know, the Republicans have a majority there. Maybe you know,
you ultimately don't see as much blowback, but I think,
you know, it really does raise a lot of questions about,
you know, some of these issues that the Democrats have

(13:02):
really been fighting for here, right. I mean, I think
that the fact that they've even reached the deal here
it does kind of demonstrate how difficult it is for
Democrats to use any kind of leverage they have in
a Republican controlled Washington to push back on Trump's agenda.
I mean, this is something that you know, a deal
they were trying to reach just kind of on healthcare
tax credits, you know, more meaningfully. They were trying to

(13:22):
reach this for weeks. But you know now, I mean
we're in the midst of the you have the longest
government shutdown ever. Clearly they weren't able to you know,
sort of make any breakthrough here. So we'll have to
see kind of where that vote ultimately materializes in terms of,
you know, a future vote on health care tax credits
in December and whether the Democrats are able to actually

(13:42):
take that and move it forward into any meaningful progress
to accomplish anything on their agenda.

Speaker 3 (13:48):
This is Bloomberry Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.

Speaker 2 (13:55):
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Speaker 3 (14:01):
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Speaker 2 (14:16):
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Speaker 2 (14:35):
And I'm Nathan Hager. Join us again tomorrow morning for
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