October 3, 2025 • 15 mins
On today's podcast:
1) The Senate is expected to hold another vote today on a stopgap spending bill to reopen the government into mid-November. It comes as President Trump threatens to slash jobs. The US government shutdown adds uncertainty for investors seeking signals on the Federal Reserve's monetary-easing path. It will delay Friday's government payroll report, making investors reliant on private data for clues about the economic outlook.
2) Treasury Secretary Scott Bessent predicted a “pretty big breakthrough” in the next round of trade talks with China. China has stopped buying US soybeans, with Beijing using the import ban as a bargaining chip in trade talks with the US. The US and China are set to hold talks before the scheduled November 10 expiration of a truce on the highest tariff levels from earlier this year.
3) Boeing's 777X is slated to fly commercially for the first time in early 2027, a fresh setback to the US planemaker. The delay could result in potentially billions of dollars in accounting charges, with analysts estimating the non-cash accounting charge could run from $2.5 billion to as much as $4 billion. Boeing executives are set to discuss the extent and cost of the latest schedule slip for the jet when Boeing reports earnings on Oct. 29.
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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, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
Karen, we are headed into day three of the government
shutdown in Washington. The Senate is expected to hold another
vote today on a stopgap spending bill to reopen the
government into mid November. Democrats are holding firm on demands
to extend healthcare subsidies that expire at the end of
the year, and now President Trump is threatening to slash
jobs at what he calls Democrat agencies that don't align
(00:38):
with his agenda. White House spokeswoman Caroline Levitt was asked
how deep the cuts could go.
Speaker 2 (00:44):
It's likely going to be in the thousands.
Speaker 1 (00:45):
It's a very good question, and that's something that the
Office of Management and Budget and the entire team at
the White House here again is unfortunately having to work
on today.
Speaker 3 (00:53):
Press Secretary Caroline Levitt at the White House. Now, some
budget experts of question whether it's legal to conduct permanent
lay off during a show down. House Minority Leader Hakim
Jeffrey says Republicans have refused to negotiate.
Speaker 4 (01:04):
This is the first week of this shutdown, But we've
had months of chaos and cruelty unleashed on the American people,
and the American people are paying close attention.
Speaker 3 (01:15):
House Democratic Leader Hakim Jeffreys. A Washington Post poll finds
more voters blamed President Trump and Republicans for the shutdown
than Democrats by a seventeen point margin. If the Senate
does vote today, Majority leader John Thune says he is
unlikely to hold further votes into the weekend. The House
doesn't return from its recess until Tuesday.
Speaker 2 (01:33):
Well, Nathan, if it weren't for the governments shutdown, investors
would be looking forward to the jobs report. That data
comes out the first Friday of every month, and Bloomberg's
Michael McKee tells us what we could have expected.
Speaker 5 (01:45):
It's not exactly Sherlock Holmes dog that didn't bark. But
the government shutdown means no jobs report today, so no
warning or reassurance on the state of the economy. Alternate
data ADP employment and ism manufacturing suggesting high remained weak
in September that, in theory, could keep the Fed on
track to cut rates at the end of the month.
(02:06):
The hope, of course, is the folks in Washington can
settle their little feud and get the payroll data out
before that and before we miss any other key indicators.
Michael McKee, Bloomberg Radio.
Speaker 3 (02:18):
All right, Mike, thanks, So the shutdown is got gold
on track for its seventh consecutive week of gains. Bully,
it has sorted more than forty five percent this year.
The price is now on track for the biggest annual
gain since nineteen seventy nine, and stocks enter today's session
at all time highs. Walter Todd is chief investment officer
at Greenwood Capital.
Speaker 6 (02:38):
We think the market's a little bit over at skis
is kind of I hurt someone say the today price
for perfection in a very imperfect world. I think that's
a good description of where we are right now. So
we do see the opportunity for some broader volatility, even
though individual name volatility has been significant.
Speaker 3 (02:55):
Greenwood Capitals Walter Todd stock futures are higher this morning,
setting the S and p F five hundred up for
a sixth straight gain. That would be its longest winning
streak since July.
Speaker 2 (03:05):
Now, the latest on the trade war, Nathan Treasury Secretary
Scott Besson predicts, quote a pretty big big breakthrough in
the next round of talks with China, even as the
Trump administration takes steps to support American farmers heard by
a decline in Chinese purchases of soybeans. Besson spoke on CNBC.
Speaker 7 (03:24):
As I leave the trade negotiations for the US with
my counterpart on the Chinese side, the Vice Premier. What
gives us a great comfort is the respect that the
two leaders have for each other. So it'll be very
helpful for them to be able to speak in person
(03:45):
and set the framework for trade going forward.
Speaker 2 (03:49):
Treasury Secretary Scott Besson says the upcoming negotiations will occur
before the scheduled November tenth truce expiration date. Besson also
says news on support for American farmers and the soy
sector in particular is expected to be announced next Tuesday.
Speaker 3 (04:04):
Turning the company news now, Karen, we're watching shares of
Applied Materials in the pre market. They are down more
than three percent. The largest US maker of machinery used
to manufacture semiconductors says an expansion of rules that restrict
the export of its products to China will take another
chunk out of its revenue. Applied Materials expects it to
cost six hundred million dollars in fiscal twenty twenty six,
(04:27):
which runs through next October.
Speaker 2 (04:29):
We have a setback for Boeing. Nathan Bloomberg News has
learned the company's seven seventy seven X is slated to
fly commercially for the first time in early twenty twenty
seven instead of next year. The delay could result in
potentially billions of dollars in accounting charges, with analysts estimating
the non cash accounting charge could run from two and
a half billion to as much as four billion dollars.
(04:52):
Boeing executives are set to discuss the extent and cost
of the latest schedules slip for the jet when Boeing
reports earnings on October twenty.
Speaker 3 (05:00):
Well Karena was a rough session for credit companies TransUnion
and Equifax. Their drop came after fair Isaac announced a
new program that gives mortgage lenders a way to get
its credit scores without buying them from those companies or experience.
Shares of fair Isaac, which goes by the name Fiico,
surged eighteen percent.
Speaker 2 (05:21):
And there may be a big AI deal in the works.
Nathan Bloomberg News has learned Global Infrastructure Partners As in
advanced talks to acquire mcquarie backed Aligned Data Centers. Sources
Aligned could be valued at about forty billion dollars in
a transaction. A deal with Mark the latest in a
series of deals as investors buy for exposure to the
(05:41):
leaders of the AI technology. At forty billion dollars, GP's
deal for Aligned would rank among the world's five biggest
transactions this year, according to data compiled by Bloomberg. Time
now for look at some of the other stories making
news in New York and around the world world, and
for that we're joined by Bloomberg's John Tucker. John, Good morning, Yeah,
(06:03):
and good morning Karen.
Speaker 8 (06:04):
Police in the UK say they've identified the man who
killed two at a Manchester synagogue where worshippers were gathering
for Yom Kippor, and Bloomberg's James Wilcock has.
Speaker 9 (06:13):
More Jahad al Shami, a thirty five year old Britcisen
of Syrian descent. Investigations are still ongoing, and the Home
Section this morning says two things. Firstly, we don't yet
know if this is a terrorist cell, and secondly that
the perpetrate was not known to authority. So it's worth
saying Al Chami is Arabic for the Syrian and it
is a sort of a known non deguere for Jahadis
(06:35):
to take a name, so that may not yet be
relevant to the investigation.
Speaker 8 (06:39):
The attacker drove his vehicle into worshippers and was shot
dead by police. Three others remain in the hospital. It's
sentencing day for Sean Ditty Colms in his prostitution related
convictions in New York. Prosecutors argue the music mogul deserves
at least eleven years in prison. Has the defense pushers
for time served. A fire broke out a Chevron oil
(06:59):
refinery just outside Los Angeles last night. It's in towering
flames into the year that were visible for miles. Officials
and El Segundo urged people to stay indoors. Nobody was hurt,
and Munich Airport temporarily shut down late yesterday after a
string of drone sightings in the area. It's the latest
mysterious drone over flights in the airspace of European Union
(07:20):
member countries. And Taylor Swift's twelfth studio album, The Life
of the Showgirl, is coming out today. She posted this
message on.
Speaker 5 (07:30):
X Hey, it's Taylor.
Speaker 1 (07:32):
Check out my new album The Life of a Showgirl
now on YouTube and YouTube music and baby, that's show
business for you.
Speaker 8 (07:38):
Well. Swift is now worth two point one billion dollars.
That's up a billion dollars from two years ago when
the Bloomberg Billionaires Index first outed her as a member
of the Three Commas Club. Global news twenty four hours
a day and whenever you want it with Bloomberg News. Now,
I'm John Tucker. This is Bloomberg.
Speaker 2 (07:56):
Karen Nanks sean time now for our Bloomberg Sports Update,
and for that we bring in John stash Hour.
Speaker 5 (08:02):
Thanks Darren.
Speaker 10 (08:03):
There were three decisive game threes the Baseball Wildcard Playoffs,
starting with Detroit six to three win at Cleveland. The
Tigers move on to place Seattle that comes beat San
Diego three to one. Next out for them as Milwaukee
and the Yankees will now play Toronto. They shut out
the Red Sox four and up. In rookie pitcher Cam
Schlitler went eight and is allowed no runs, struck out
twelve over time. In the NFC West, the forty nine
(08:24):
ers stopped the Rams on a fourth down int San
Francisco won twenty six, twenty three. That's your Bloomberg Sports Update.
Speaker 2 (08:32):
Stay with us. More from Bloomberg day Break coming up
after this.
Speaker 1 (08:40):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business Oppum. This is Bloomberg Daybreak.
Speaker 3 (08:51):
Good morning, I'm Nathan Hager. On day three of the
government shutdown in Washington, DC, both Republicans and Democrats appeared
dug in, and now the White House is warning the
first federal layoffs from the funding lamps could come as
soon as today. House Speaker Mike Johnson says, the Democrats
are in a needless fight with President Trump.
Speaker 8 (09:09):
How important is it to appeal to the radical left
of your base and hurt Americans because if they drag
this on through the weekend, more and more people will
be hurt.
Speaker 3 (09:19):
It's how Speaker Mike Johnson speaking on Capitol Hill this morning.
We are joined by Terry Haynes, the founder of Pangea Policy. Terry,
good morning, How deep could the pain go? How seriously
do you take this idea from the White House that
we could actually see layoffs come out of this shutdown?
Speaker 11 (09:36):
Good morning, Nathan. I take very seriously the possibility that
what the White House might do is institute these kinds
of layoffs, riffs, furloughs, firings, you know, whatever they want
to call it, whatever they want to do. You know, frankly,
it's a signal from among other things, it's a signal
(09:58):
for travel or the direction of travel. Here you get
a situation where, uh, you know, I if this ramps
up in this particular way, among other things, Trump will
have much less ability or much less desire to want
to end the shutdown, because then Congress has a much
greater likelihood of being able to overturn those firings.
Speaker 3 (10:21):
There's a question, isn't there about whether it's legal to
use a shutdown to conduct reductions in force. There are
federal government protections for jobs that would need to be
overturned in some way.
Speaker 11 (10:37):
When they're oh yeah, absolutely, you know, I think the
administration wants kind of two practical fights. One wants to
be seen is going up against public unions, which the
which they think are are illegal and and a bad
thing anyway. Number one, anything that limits the executive's ability
to oversee the executive branch is a bad thing I
(10:59):
think that way. Secondly, back to my earlier point, it's that,
you know, once a shutdown is over, Congress has the
a great ability to actually remedy a lot of this
stuff through the annual appropriations bills, and of course Democrats
have a lot of leverage there, and they'll of course
want to take that leverage and do something with it
(11:22):
to reinstate a lot of those jobs. So, you know,
the gun that's being held, the metaphorical gun that's being
held to public employees heads, I think is quite real
and quite large.
Speaker 3 (11:32):
That raises a question about, you know, whether some of
those jobs could be rescinded through recisions that the White
House Budget Director has carried out in the past. But
that's probably an argument for another day. In the meantime,
I think we're expecting another vote in the Senate on
the clean continuing resolution that Republicans have put out there.
(11:54):
What are we expecting when it comes to how this
fight over the spending bill that's on the floor will continue.
Speaker 11 (12:04):
There's a lot of different trip wires that happened today.
I don't think anything gets resolved today. Let me just
say that first, but you'll have a Thune Johnson press
event at eleven o'clock. The Senate Democrats have a lunch
at noon. Thuon I think announced the Senate Today's Senate
vote at one thirty. And let's remember that's not just
(12:26):
on the temporary spending bills, but it's also on more
Trump nominees. So the signal that Schumer and Democrats give
on those nominees I think also plays into this a
little bit, since Republicans have been upset about what they
think of a Schumer obstructionism. There After that, I think
(12:46):
nothing probably happens differently, But the question will be whether
or not more Democrats peel off from the three that
already have, and I think the answer to that today
is no. But what I think happens is a lot
of pressure behind the scenes, to say, from particularly from
Maryland and Virginia senators, to say, look, you know, we
you know the the problem with the public employees is
(13:08):
so large that you know, we can't deal with us
that much longer. Why don't we just declare victory by
announcing negotiations with Republicans on this, on the healthcare matter,
and and be done with it for now?
Speaker 3 (13:22):
Just thirty seconds left, Terry. But is there a risk
that Republicans go too far with this pressure campaign, this
idea of carrying out mass government layoffs.
Speaker 11 (13:31):
Oh absolutely, yeah, you know, it's rebably. What's interesting about
this from a from a kind of a political tactical
perspective is Republicans have judged the moment very well. And
I'm not taking their side on any of this by
saying so, I'm just saying the judged it very well.
And uh, and you've got a situation where, uh, you
know where you know, but if they start pressing it
(13:52):
too much, and there's always a temptation for that, uh,
you know, they they risk making the problem worse. And
you know, for as I say, frankly, may the prospects
for a full year spending and you know, on things
like defense and other things that much more unattainable.
Speaker 2 (14:09):
This is Bloomberg day Break, your morning podcast on the
stories making news from Wall Street to Washington and beyond.
Speaker 3 (14:15):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 2 (14:22):
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 4 (14:36):
Plus.
Speaker 3 (14:37):
Listen coast to coast on the Bloomberg Business App now
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Speaker 2 (14:42):
And don't forget to subscribe to Bloomberg News Now. It's
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platform to stay informed all day long. I'm Karen Moscow.
Speaker 3 (14:55):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Dabrael
Bloomberg Audio Studios, podcasts, radio News.
Speaker 2 (00:09):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
Karen, we are headed into day three of the government
shutdown in Washington. The Senate is expected to hold another
vote today on a stopgap spending bill to reopen the
government into mid November. Democrats are holding firm on demands
to extend healthcare subsidies that expire at the end of
the year, and now President Trump is threatening to slash
jobs at what he calls Democrat agencies that don't align
(00:38):
with his agenda. White House spokeswoman Caroline Levitt was asked
how deep the cuts could go.
Speaker 2 (00:44):
It's likely going to be in the thousands.
Speaker 1 (00:45):
It's a very good question, and that's something that the
Office of Management and Budget and the entire team at
the White House here again is unfortunately having to work
on today.
Speaker 3 (00:53):
Press Secretary Caroline Levitt at the White House. Now, some
budget experts of question whether it's legal to conduct permanent
lay off during a show down. House Minority Leader Hakim
Jeffrey says Republicans have refused to negotiate.
Speaker 4 (01:04):
This is the first week of this shutdown, But we've
had months of chaos and cruelty unleashed on the American people,
and the American people are paying close attention.
Speaker 3 (01:15):
House Democratic Leader Hakim Jeffreys. A Washington Post poll finds
more voters blamed President Trump and Republicans for the shutdown
than Democrats by a seventeen point margin. If the Senate
does vote today, Majority leader John Thune says he is
unlikely to hold further votes into the weekend. The House
doesn't return from its recess until Tuesday.
Speaker 2 (01:33):
Well, Nathan, if it weren't for the governments shutdown, investors
would be looking forward to the jobs report. That data
comes out the first Friday of every month, and Bloomberg's
Michael McKee tells us what we could have expected.
Speaker 5 (01:45):
It's not exactly Sherlock Holmes dog that didn't bark. But
the government shutdown means no jobs report today, so no
warning or reassurance on the state of the economy. Alternate
data ADP employment and ism manufacturing suggesting high remained weak
in September that, in theory, could keep the Fed on
track to cut rates at the end of the month.
(02:06):
The hope, of course, is the folks in Washington can
settle their little feud and get the payroll data out
before that and before we miss any other key indicators.
Michael McKee, Bloomberg Radio.
Speaker 3 (02:18):
All right, Mike, thanks, So the shutdown is got gold
on track for its seventh consecutive week of gains. Bully,
it has sorted more than forty five percent this year.
The price is now on track for the biggest annual
gain since nineteen seventy nine, and stocks enter today's session
at all time highs. Walter Todd is chief investment officer
at Greenwood Capital.
Speaker 6 (02:38):
We think the market's a little bit over at skis
is kind of I hurt someone say the today price
for perfection in a very imperfect world. I think that's
a good description of where we are right now. So
we do see the opportunity for some broader volatility, even
though individual name volatility has been significant.
Speaker 3 (02:55):
Greenwood Capitals Walter Todd stock futures are higher this morning,
setting the S and p F five hundred up for
a sixth straight gain. That would be its longest winning
streak since July.
Speaker 2 (03:05):
Now, the latest on the trade war, Nathan Treasury Secretary
Scott Besson predicts, quote a pretty big big breakthrough in
the next round of talks with China, even as the
Trump administration takes steps to support American farmers heard by
a decline in Chinese purchases of soybeans. Besson spoke on CNBC.
Speaker 7 (03:24):
As I leave the trade negotiations for the US with
my counterpart on the Chinese side, the Vice Premier. What
gives us a great comfort is the respect that the
two leaders have for each other. So it'll be very
helpful for them to be able to speak in person
(03:45):
and set the framework for trade going forward.
Speaker 2 (03:49):
Treasury Secretary Scott Besson says the upcoming negotiations will occur
before the scheduled November tenth truce expiration date. Besson also
says news on support for American farmers and the soy
sector in particular is expected to be announced next Tuesday.
Speaker 3 (04:04):
Turning the company news now, Karen, we're watching shares of
Applied Materials in the pre market. They are down more
than three percent. The largest US maker of machinery used
to manufacture semiconductors says an expansion of rules that restrict
the export of its products to China will take another
chunk out of its revenue. Applied Materials expects it to
cost six hundred million dollars in fiscal twenty twenty six,
(04:27):
which runs through next October.
Speaker 2 (04:29):
We have a setback for Boeing. Nathan Bloomberg News has
learned the company's seven seventy seven X is slated to
fly commercially for the first time in early twenty twenty
seven instead of next year. The delay could result in
potentially billions of dollars in accounting charges, with analysts estimating
the non cash accounting charge could run from two and
a half billion to as much as four billion dollars.
(04:52):
Boeing executives are set to discuss the extent and cost
of the latest schedules slip for the jet when Boeing
reports earnings on October twenty.
Speaker 3 (05:00):
Well Karena was a rough session for credit companies TransUnion
and Equifax. Their drop came after fair Isaac announced a
new program that gives mortgage lenders a way to get
its credit scores without buying them from those companies or experience.
Shares of fair Isaac, which goes by the name Fiico,
surged eighteen percent.
Speaker 2 (05:21):
And there may be a big AI deal in the works.
Nathan Bloomberg News has learned Global Infrastructure Partners As in
advanced talks to acquire mcquarie backed Aligned Data Centers. Sources
Aligned could be valued at about forty billion dollars in
a transaction. A deal with Mark the latest in a
series of deals as investors buy for exposure to the
(05:41):
leaders of the AI technology. At forty billion dollars, GP's
deal for Aligned would rank among the world's five biggest
transactions this year, according to data compiled by Bloomberg. Time
now for look at some of the other stories making
news in New York and around the world world, and
for that we're joined by Bloomberg's John Tucker. John, Good morning, Yeah,
(06:03):
and good morning Karen.
Speaker 8 (06:04):
Police in the UK say they've identified the man who
killed two at a Manchester synagogue where worshippers were gathering
for Yom Kippor, and Bloomberg's James Wilcock has.
Speaker 9 (06:13):
More Jahad al Shami, a thirty five year old Britcisen
of Syrian descent. Investigations are still ongoing, and the Home
Section this morning says two things. Firstly, we don't yet
know if this is a terrorist cell, and secondly that
the perpetrate was not known to authority. So it's worth
saying Al Chami is Arabic for the Syrian and it
is a sort of a known non deguere for Jahadis
(06:35):
to take a name, so that may not yet be
relevant to the investigation.
Speaker 8 (06:39):
The attacker drove his vehicle into worshippers and was shot
dead by police. Three others remain in the hospital. It's
sentencing day for Sean Ditty Colms in his prostitution related
convictions in New York. Prosecutors argue the music mogul deserves
at least eleven years in prison. Has the defense pushers
for time served. A fire broke out a Chevron oil
(06:59):
refinery just outside Los Angeles last night. It's in towering
flames into the year that were visible for miles. Officials
and El Segundo urged people to stay indoors. Nobody was hurt,
and Munich Airport temporarily shut down late yesterday after a
string of drone sightings in the area. It's the latest
mysterious drone over flights in the airspace of European Union
(07:20):
member countries. And Taylor Swift's twelfth studio album, The Life
of the Showgirl, is coming out today. She posted this
message on.
Speaker 5 (07:30):
X Hey, it's Taylor.
Speaker 1 (07:32):
Check out my new album The Life of a Showgirl
now on YouTube and YouTube music and baby, that's show
business for you.
Speaker 8 (07:38):
Well. Swift is now worth two point one billion dollars.
That's up a billion dollars from two years ago when
the Bloomberg Billionaires Index first outed her as a member
of the Three Commas Club. Global news twenty four hours
a day and whenever you want it with Bloomberg News. Now,
I'm John Tucker. This is Bloomberg.
Speaker 2 (07:56):
Karen Nanks sean time now for our Bloomberg Sports Update,
and for that we bring in John stash Hour.
Speaker 5 (08:02):
Thanks Darren.
Speaker 10 (08:03):
There were three decisive game threes the Baseball Wildcard Playoffs,
starting with Detroit six to three win at Cleveland. The
Tigers move on to place Seattle that comes beat San
Diego three to one. Next out for them as Milwaukee
and the Yankees will now play Toronto. They shut out
the Red Sox four and up. In rookie pitcher Cam
Schlitler went eight and is allowed no runs, struck out
twelve over time. In the NFC West, the forty nine
(08:24):
ers stopped the Rams on a fourth down int San
Francisco won twenty six, twenty three. That's your Bloomberg Sports Update.
Speaker 2 (08:32):
Stay with us. More from Bloomberg day Break coming up
after this.
Speaker 1 (08:40):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business Oppum. This is Bloomberg Daybreak.
Speaker 3 (08:51):
Good morning, I'm Nathan Hager. On day three of the
government shutdown in Washington, DC, both Republicans and Democrats appeared
dug in, and now the White House is warning the
first federal layoffs from the funding lamps could come as
soon as today. House Speaker Mike Johnson says, the Democrats
are in a needless fight with President Trump.
Speaker 8 (09:09):
How important is it to appeal to the radical left
of your base and hurt Americans because if they drag
this on through the weekend, more and more people will
be hurt.
Speaker 3 (09:19):
It's how Speaker Mike Johnson speaking on Capitol Hill this morning.
We are joined by Terry Haynes, the founder of Pangea Policy. Terry,
good morning, How deep could the pain go? How seriously
do you take this idea from the White House that
we could actually see layoffs come out of this shutdown?
Speaker 11 (09:36):
Good morning, Nathan. I take very seriously the possibility that
what the White House might do is institute these kinds
of layoffs, riffs, furloughs, firings, you know, whatever they want
to call it, whatever they want to do. You know, frankly,
it's a signal from among other things, it's a signal
(09:58):
for travel or the direction of travel. Here you get
a situation where, uh, you know, I if this ramps
up in this particular way, among other things, Trump will
have much less ability or much less desire to want
to end the shutdown, because then Congress has a much
greater likelihood of being able to overturn those firings.
Speaker 3 (10:21):
There's a question, isn't there about whether it's legal to
use a shutdown to conduct reductions in force. There are
federal government protections for jobs that would need to be
overturned in some way.
Speaker 11 (10:37):
When they're oh yeah, absolutely, you know, I think the
administration wants kind of two practical fights. One wants to
be seen is going up against public unions, which the
which they think are are illegal and and a bad
thing anyway. Number one, anything that limits the executive's ability
to oversee the executive branch is a bad thing I
(10:59):
think that way. Secondly, back to my earlier point, it's that,
you know, once a shutdown is over, Congress has the
a great ability to actually remedy a lot of this
stuff through the annual appropriations bills, and of course Democrats
have a lot of leverage there, and they'll of course
want to take that leverage and do something with it
(11:22):
to reinstate a lot of those jobs. So, you know,
the gun that's being held, the metaphorical gun that's being
held to public employees heads, I think is quite real
and quite large.
Speaker 3 (11:32):
That raises a question about, you know, whether some of
those jobs could be rescinded through recisions that the White
House Budget Director has carried out in the past. But
that's probably an argument for another day. In the meantime,
I think we're expecting another vote in the Senate on
the clean continuing resolution that Republicans have put out there.
(11:54):
What are we expecting when it comes to how this
fight over the spending bill that's on the floor will continue.
Speaker 11 (12:04):
There's a lot of different trip wires that happened today.
I don't think anything gets resolved today. Let me just
say that first, but you'll have a Thune Johnson press
event at eleven o'clock. The Senate Democrats have a lunch
at noon. Thuon I think announced the Senate Today's Senate
vote at one thirty. And let's remember that's not just
(12:26):
on the temporary spending bills, but it's also on more
Trump nominees. So the signal that Schumer and Democrats give
on those nominees I think also plays into this a
little bit, since Republicans have been upset about what they
think of a Schumer obstructionism. There After that, I think
(12:46):
nothing probably happens differently, But the question will be whether
or not more Democrats peel off from the three that
already have, and I think the answer to that today
is no. But what I think happens is a lot
of pressure behind the scenes, to say, from particularly from
Maryland and Virginia senators, to say, look, you know, we
you know the the problem with the public employees is
(13:08):
so large that you know, we can't deal with us
that much longer. Why don't we just declare victory by
announcing negotiations with Republicans on this, on the healthcare matter,
and and be done with it for now?
Speaker 3 (13:22):
Just thirty seconds left, Terry. But is there a risk
that Republicans go too far with this pressure campaign, this
idea of carrying out mass government layoffs.
Speaker 11 (13:31):
Oh absolutely, yeah, you know, it's rebably. What's interesting about
this from a from a kind of a political tactical
perspective is Republicans have judged the moment very well. And
I'm not taking their side on any of this by
saying so, I'm just saying the judged it very well.
And uh, and you've got a situation where, uh, you
know where you know, but if they start pressing it
(13:52):
too much, and there's always a temptation for that, uh,
you know, they they risk making the problem worse. And
you know, for as I say, frankly, may the prospects
for a full year spending and you know, on things
like defense and other things that much more unattainable.
Speaker 2 (14:09):
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Speaker 2 (14:22):
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Speaker 4 (14:36):
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Speaker 3 (14:37):
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Speaker 2 (14:42):
And don't forget to subscribe to Bloomberg News Now. It's
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Speaker 3 (14:55):
And I'm Nathan Hager. Join us again tomorrow morning for
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