US, Australia Ink Rare Earths Deal; Supreme Court to Hear Trump Tariffs Case

Bloomberg Audio Studios, Podcasts, radio News.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Here, and we begin with the latest on the trade front.
Just days before expected talks with China and Malaysia, President
Trump has signed an agreement with Australian Prime Minister Anthony
Albanese to boost access to critical minerals and rare earths.
The deal is part of efforts to secure a stable
supply of critical minerals, with Australia positioning itself as a
viable alternative to China. President Trump says his administration is
still talking to Beijing about a trade deal.
I expect we'll probably work out a very fair deal
with President Chief of China, so most of you will
be with us. It's going to be very exciting, and
I think we're going to work out something that's good
for both countries.
President Trump spoke from the White House. The US China
trade truce is set to expire November tenth.
Well, Nathan.
The Supreme Court is set to hear arguments next month
over President Trump's global tariffs, But before that, a group
of small businesses is weighing in. They filed briefs urging
the High Court to affirm lower court rulings that the
tariffs amount to an illegal tax on American companies. One
of the companies, Learning Resources, says the President usurped Congress's
power to tax by invoking an emergency law that was
never intended to be used to impose duties on other countries.
A second brief, led by one and liquor, distributor of
VOS Selection, says the tariffs contradict with the nation's founders
intended by giving Congress the power to levy taxes.
And Karin, we're seeing the impact of US tariffs on
sales of luxury watches. Swiss watch exports fell in September,
hurt by the Trump administration thirty nine percent tariff on
imports from Switzerland. In fact, there was a fifty five
percent plunge in exports to the US, which is the
watch industry's largest market.
Meanwhile, in Washington, Nathan, the government remains shut down after
the Senate failed to pass Republicans stop gap funding bill
again yesterday. Republican Senator Ted Cruz says he thinks Democrats
are prolonging the shutdown.
They're fourteen thousand air traffic controllers who expected to come
into work but they didn't get a full paycheck. And
this needs to end. It's not right, it's not fair,
and I think Democrats are holding not only the US
government hostage, but holding the American people hostage.
Senator Ted Cruz tells Bloomberg he does not know when
the government will reopen. Meanwhile, Senate Minority Leader Chuck Schumer
says Republicans need to negotiate.
It's been over a month since the House of Representatives
even took a single roll call vote. That's shameful, that's derelict.
Government workers must work without getting paid. House Republicans get
paid without working.
And Senate Minority Leader Chuck Schumer says healthcare premiums are
a fix it now issue and should be negotiated before
the government reopens.
Well.
In the meantime, Karen, the shutdown is having an impact
on deal making. Anglo Dutch consumer goods company the Unilever,
has pushed back its d merger of Magnum ice cream.
The company says the Securities and Exchange Commission is unable
to declare effective the registration statement that's required for the
ice cream Company's shares to be admitted to the New
York Stock Exchange. Unilever does expect to complete the spin
off of Magnum this year, after initially being on track
for the middle of next month.
Now we get to the latest on the war in Ukraine.
Nathan Senate majority leader John Thune says he's hitting the
pause button on news sanctions legislation against Russia until after
President Trump's planned meeting with Russian President Vladimir Putin. The
bill would formalize sanctions that are already in place and
impose up to five hundred percent tariffs on imports from
countries that buy Russian energy products and are not actively
supporting Ukraine. During his meeting with Australian Prime Minister Anthony Albanize,
President Trump was asked if he still thinks Ukraine could
win the war.
Battles every well, but they could still win it. I
never said they would win it. I said they anything
can happened, UNI wars versus Range thing.
President Trump spoke at the White House. She plans to
meet with Putin and Budapest. After meeting last week with
Ukrainian President Vladimir Zelenski, the President came away from that
meeting undecided on whether to supply Ukraine with the long
range missiles.
Well, Karen, Amazon says all its cloud services are restored.
This follows issues that disrupted Internet use around the world
for about fifteen hours yesterday. Sarah Fryar covers tech for
Bloomberg News.
When a large chunk of the Internet is relying on
one service, there are all these cascading effects, right. They said,
there was an issue in a database that was loading
incorrectly and that just had this domino effect for a
large portion of the Internet.
Hundreds of sites, according to Bloomberg Sarah Fryar, including financial
services outfits Venmo and Robinhood, markets, apples, music and TV offerings,
software companies such as Zoom, Salesforce and Snowflake, food services
giants including Donald's, and gaming companies like Epic Games, even
Amazon's own services Alexa and the Ring home security system.
We're not immune.
Oh well, Nathan, erning you start to pick up this
week and Netflix report. After the close of trading today,
Bloomberg's Tom Busby has more on what investors expect to see.
Expect a combination of new hits like that blockbuster K
Pop Demon Hunter's movie and returning hits like the latest
season of Squid Games to give earnings a big boost,
along with growing advertising sales from its live sporting events
and its ad supported subscription tier. Also expect to get
a little boost from some favorable foreign exchange rates. Bloomberg
consensus calls for revenue of eleven point five two billion dollars,
less than half of that coming from the US and Canada,
and earnings per share of six dollars ninety four cents.
Tom Busby Bloomberg.
Radio, All right, Tom, thank you. Finally, maybe a little
cheaper to buy that Thanksgiving turkey. Next month, Walmart says
it'll offer its lowest prices in years for butterball turkeys
ninety seven cents per pound, the cheapest since twenty nineteen.
Turkey production's been tight due to shrinking flocks and the
resurgence of Avian flu.
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 a bloombergs Michael Barr Michael,
Good morning.
Good morning, Karen. Israel's military says Palestinian militants and Gaza
have handed over another body of a hostage the remains
of thirteen hostages have been handed over since the ceasefire began,
it is shaky at messed. After a weekend of deadly
clashes between the two sides. At the White House, President
Trump says he still believes the ceasefire will hold and
suggest other nations could get involved.
We had a dark cloud over the Middle East, and
now it's all I mean, we have a little situation
relatively with AMAS, and that will be taken care very
quickly if they don't straighten it at themselves.
Meanwhile, White House advisors Jared Kushner and Steve Whitcoff are
back in Israel this we Police in Atlanta say they
thwarted what could have been a mass shooting at one
of the country's busiest airports. Authorities say Billy Cagele of
nearby Cartersville drove to the south terminal of Atlanta's Hartsfield
Jackson International Airport to assess crowd levels, but police say
they were alerted to his activities by family members and
arrested him at the airport. Chief Darren shirebamb says they
found an assault rifle in his pickup truck.
I do believe the Michi Keagle was headed back to
his truck to retrieve it, and I do believe he
is likely to use that weapon inside the crowded terminal that.
He had just seen. Chief shire Bomb says Kegel was
not able to legally own a gun since he is
a convicted felon. New York City police are looking for
answers after a newborn baby was left in a subway
station during the busy Monday morning commute. An anonymous caller
led police to the baby at the station on West
thirty fourth Street and Seventh Avenue. Fortunately, the newborn girl
was wrapped in a blanket and is okay. New York
City Transit President Dmitrius Kritchlow called her the miracle on
thirty fourth Street.
Just grateful for the work of the miypdum responding and
caring for the baby.
Police brought the baby to Bellevue Hospital and JESU in
stable condition. Nicholas Arcosey entered prison after his conviction for
a criminal conspiracy, marking the first time a former French
president goes to jail. Sarkozy, who was convicted last month
after her AIDS, allegedly sought electoral funding from Libyan leader
Momarkadavi's regime has consistently denied any wrongdoing. Global news twenty
four hours a day and whenever you want it with
the Bloomberg News. Now, I'm Michael Barr, and this is
Bloomberg Karen.
Thanks Michael all the time. Now for our Bloomberg Sports Update,
and for that we bring in John Stashauer.
Thanks Darren a thrilling Game seven the and the American
League Championship Series in Toronto. Seattle took a three to
one lead to the seventh and in when George Springer
hit a three run homer off Edward Bizardo. The Blue
Jays won the game four to three and won the
series four to three. The World Series starting Friday, will
be the Blue Jays against the Dodgers nfil one Night
Football Detroit at home beat Tampa Bay twenty four to nine.
Seattle at home beat Houston twenty seven to nineteen. That's
your Bloomberg Sports Update.
Stay with us. More from Bloomberg Day Break coming up
after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump has signed
a landmark deal with Australia to counter China's dominance in
rare earths, but the President is still sounding optimistic on
making a trade deal when he meets with Chinese President
Shi Jinping at the end of the month.
If we don't make a deal, we'll charge them a
very substantial tariff and they'll be paying US hundreds of
millions of dollars a year, which you're basically.
Paying right now.
And that was the President during his meeting with Australian
Prime Minister Anthony Albani's at the White House. And for more,
we're joined this morning from Hong Kong by Jenny Marsh,
Bloomberg's team leader for Greater China Economy and Government. Jenny,
good morning. Walk us through this deal that was struck
between President Trump and Prime Minister Albanese and what it
could mean for China's stranglehold on rare earths.
So Trump and alban Ezi have struck this deal to
help the US secure better access to China rare earth
to reds rather, I mean for China. This is interesting
because it shows that the US is now sort of
turning to other countries to try and secure these rare earths.
It's an eight point five billion dollar agreement, and you know,
the US is a significant ally in this because it
is currently home to the only company that is actually
sort of mine and processing heavy rares at the moment.
So Australia already in the past has helped Japan sort
of wean itself off rare earth dependence, and so now
the US is sort of turning to Australia to do
a similar thing for it as China sort of wheels
it's chocol over these supply chains.
So will this be enough in the short term for
the US to sort of wean itself off its dependence
on Chinese rare earths.
It's going to take a long time. I mean, this
eight point five billion dollar deal, you know, it's gonna
take things to the next level. They said that it's
going to take years. You know, there are sort of
various estems out there how long it takes for new
mines to come online. But you know, I think Goldman
Sachs had a note this morning saying, gibe eight to
nine years just for a new mine and then to
build out sort of the processing capabilities as well also
takes a very long time, and these plants are often
dependent on Chinese machinery, as we've seen in Malaysia. So
this is a step in the right direction. It's a
good thing that the US is sort of looking beyond
its own borders, you know, to that sake in empty materials.
But now it's sort of turning to the experts in
Australia as well to try and beef up its capabilities.
But you know, this isn't going to produce results of
any sort of meaningful scale that will allow the US
to sort of reduce its dependence on China for years,
you know, probably until after Trump's presidency finishes.
And of course this all comes after China announced these
restrictions on rare earth exports and that sort of upset
reaction that we heard from President Trump regarding that, is
this kind of deal what the US has struck with
Australia the kind of thing that could move China when
it comes to its own plans for rare earths.
I think this is exactly the kind of thing that
China's latest restrictions are aimed at stopping. Because those restrictions,
you know that China unveiled this month put curbs on
the export of machinery, and that sort of the ability
of foreign companies and plants to process the China is
helping to extract from the ground. And so when you
look at those curbs, what they're sort of really the
intention there is they want to try and keep this
leverage for as long as they can. You know, the
thing about putting these sort of export controls on a
product is they immediately sort of start a race for
other countries to reduce their dependency on you. So you're
telling everybody you know, we're going to use this as
a weapon. So people then want to sort of find
an alternatives. And I think China understands that, and what
it just wants to do is slow down the sort
of collaboration that the US and Australia really are kicking
off here so that it can use this leverage for
as long as it possibly can.
Do So in our last thirty seconds, what could this
mean for the meeting that we're still expecting between Presidents
Trump and she in South Korea at the end of
the month.
Yeah, I mean rare rest would be a big part
of that. I think this enables Trump to go to
she and say, look, you know you've got this big
leverage over me, but we have friends and allies around
the world who are wanting to work with us to
sort of expedite our ability to mine and process our
own wreirth. So it gives Trump a little bit more
sort of a cloud going into that meeting. But I
think she probably knows he has a pretty good hand
when it comes to rares.
This is Bloomberg Daybreak, your morning podcast on the stories
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