Vance Says US Headed for Shutdown, US & Israel Agree to Gaza Peace Plan

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.
Karen, we begin with the countdown to a government shut down.
With less than twenty four hours until the deadline, Congressional
leaders remain far apart. After meeting with President Donald Trump
at the White House. Democrats are calling for an extension
of healthcare subsidies and a stopgap spending bill, and to
reverse the Medicaid cuts that are in the President's tax law.
Vice President jd Vance says Democrats need to back down.
Let's do it in the context of an open government
that's providing essential services to the American people. That's all
that we're proposing to do, and the fact that they
refuse to do that shows how unreasonable their position is.
I think we're headed to a shutdown because the Democrats
won't do the.
Right thing, and like us, President jd Vance, Senate Minority
Leader Chuck Schumer's placing blame on the other party.
We laid out to the President some of the consequences
of what's happening in healthcare, and by his face and
by the way he looked I think he heard about
them for the first time, and so he seemed to
for the first time, understand the magnitude of this crisis.
And we hope he'll talk to the Republican leaders now.
Later on Capitol Hill, Senate Minority Leader Chuck Schumer suggested
Democrats could budge on some priorities, like extending.
Subsidies for Affordable Care Act.
Premiums and stopping the White House from using fast track
measures to send federal funds. But Schumer says Democrats won't
pass a stop gap without acting on Obamacare credits. He
says millions of Americans are about to get notices of
massive premium increases. Government funding without a deal is set
to expire at one minute after midnight tonight.
Well Nathan. Federal agencies are preparing for a possible government shutdown,
with detailed plans that call for temporary furloughs but not
permanent mass firings. The White House press departments to consider
mass layoffs and their contingency planning. At least eight cabinet
departments that represent more than two thirds of the federal
workforce are calling for more than four hundred thousand employees
to be sent home as non essential, but those plans
contain only one reference to permanent staff reductions and Karen.
As the President negotiates on a possible shutdown, he is
also focusing on a ceasefire between Israel and Hamas. Both
the President and Israeli Prime Minister Benjamin natanyahuo say they
have agreed to a twenty point plan to end the
war in Gaza.
Bloomberg's Amy Morris reports from Washington.
President Trump says his administration's twenty point plan will end
the war between Israel and Hamas in Gaza, and Israeli
Prime Minister Benjamin Natanyahu has already agreed to it.
You also want to thank Prime Minister Nataniell for agreeing
to the plan and for trusting that if we work together,
we can bring an end to the death and destruction
that we've seen for so many years, decades, even cinceuries.
Natagnyah, who says the deal will be done one way
or another.
This could be done the easy way, or it can
be done the hard way, but it will now.
If both parties accept this twenty point plan, it would
end the conflict immediately and all hostages, living and dead
will be returned. In Washington, Amy Morris Bloomberg Radio.
Amy Thank You. Also happening around the nation's capital, President
Trump and Defense Secretary Pete Haigseth will address US military
officials in person and a marine base in Quantago, Virginia today.
Last week, Heygseth's summon top military commanders around the world
to the base for the meeting. Bloomberg's Wendy Benjaminson says
security is top of mind.
The fact that hundreds of general officers, including one stars,
two stars, three stars, four stars, and there enlisted day's
were coming means that there was already security in place.
Bloomberg's Wendy Benjaminson and Washington. A Pentagon spokesman did not
provide a reason for the meeting or say what Hegseeth
plan to tell the high ranking officials.
We've got some developments in the trade front as well, Karen.
President Trump has ordered ten percent tariffs on imports of softwood, timber,
and lumber, and a twenty five percent duty on kitchen cabinets, vanities,
and the polstered furniture. We get more from Bloomberg's Bilage Pens.
We saw the same thing in the pharma industry, and
this follows an investigation by the US government into the
market conditions, which means that this is a sectoral tariff.
The country that is facing the biggest impact from this
is Canada, which accounts for a large majority of the
timber sales into the US.
Bloomberg's Bilage Pens adds the tariffs are set to go
into effect October fourteenth. Some increases are targeted for next year.
President Trump says the actions would shore up domestic manufacturing,
but homebuilders have warned they could also deter investments in
new houses and renovations.
Well, Nathan o'rally in US stocks risks losing steam due
to concerns about a looming US government shutdown, and we
turn to the markets now with Bloomberg's John Tucker.
John, good morning, Good morning Kary.
Yet, traders have been focused on the jobs reports scheduled
for Friday, but it may not happen and that is
clouding the picture for investors. Of labor Statistics is going
to delay the release of the scheduled Friday job support
and suspend all operations in the event of a shutdown.
Was according to a contingency plan published by the Department
of Labor. Next week's inflation data could follow also in
the driver's seat for investors FED policy, and that will
depend on the data. At a conference yesterday, Federal Reserve
Bank of Saint Louis president ALBERTA. Mussalom said policymakers can't
rush into anything.
I'm open minded to future potential reductions and interest rates.
I do believe we need to tread cautiously and doesn't
stop there of The uncertainty around trade policies also persists,
as President Trump did say he'd impose new terms through
a pair of the sweeping yet confusing plans in New
York Home John Tucker, Bloomberg Radio.
Okay, John, thank you. The Trump administration is ramping up
its fight with higher education. The Department of Health and
Human Services says it's referring Harvard University for administrative suspension
and debarment that would exclude the university from entering into
contracts with all government agencies or receiving any federal funding
that includes research grants and student aid. Several months ago,
HHS informed Harvard leaders that the university acted with deliberate
indifference toward allegations of campus anti semitism. Harvard now has
twenty days to request a hearing with an administrative law
judge at HHS to appeal the decision.
Nathan and Financial Services Jeffries posted its best fiscal third
quarter revenue ever, with total revenue jumping almost twenty two percent.
The firm said the last quarter was its best ever
for advisory revenue as deal activity picked up and market
conditions improved. Trading activity also came in higher than a
year ago. Jeffrey's CEO, Rich Handler says despite uncertainties, businesses
are forging ahead with the plans for initial public offerings
and mergers and acquisitions.
And finally, Karen Boeing has reportedly begun work on a
next generation single aisle aircraft that could eventually replace the
seven thirty seven Max. This is according to a Wall
Street Journal report that says the new model is in
its early stages and it comes a mid growing concern
about seven thirty seven Maxes safety.
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 Bloomberg's Michael Barr.
Michael, Good morning, Good morning, Karen.
Authorities in Michigan say search crews did not find any
additional bodies inside a church of Jesus Christ of Latter
day Saints Chapel, where a marine veteran opened fire and
set the building a blaze, killing four people. Police had
fear that they would find more victims in the chart wreckage,
but now believe everyone is accounted for after Sunday's attack.
Michigan Governor Gretchen.
Whitmer, this might be a familiar pain, but it hurts
all the same every time.
We cannot keep living our lives like this.
Investigators are focusing on what motivated Thomas Said to ram
his pickup truck into the church in Grand Blank Township.
The suspect was also killed while exchanging gunfire with officers.
Eight other people were wounded and are expected to recover.
Charlie Javis was sentenced to eighty five months behind bars
for defrauding JP Morgan Chase in its one hundred and
seventy five million dollar acquisition of her student finance startup.
Frank Us District Judge Alvin Hellerstein ordered Javis to fourfeit
twenty two point four million dollars and to pay two
hundred and eighty seven point five million in restitution to
JP Morgan. In addition to her prison time, Javis was
convicted by a New York jury in March for lyne
and faking user data to mislead JP Morgan into believing
her site had more than four point twenty five million
users when it actually had fewer than three hundred thousand.
The site of armed camouflage and masked Border Patrol agents
making arrests near famous downtown Chicago landmarks has amplified concerns
about the Trump administration growing federal intervention across US cities.
Illinois leaders more on Monday of a National Guard deployment.
Governor Pritzker said he was alerted to federal officers using teargas,
pepper spray, rubber bullets, and flash bang devices on peaceful
protesters and journalists in the Chicago suburb of Broadview.
In any other country, if federal agents fired upon journalists
and protesters went unprovoked, what would we call it?
Memphis, Tennessee and Portland Morgan have also braced for a
surge of federal law enforcement. President Trump says it's necessary
blasting Democrats for crime and lacks immigration policies. Global news
twenty four hours a day and whenever you want it,
with the Bloomberg News. Now, I'm Michael Barrn. This is
Bloomberg Hearent.
Thanks Michael all time now for our Bloomberg Sports updating.
For that, we bring in John stash Hour.
Thanks Aaron Ray.
Four.
End of the Miami Dolphins getting their first win twenty
seven to twenty one over the still winless Jets, who
had thirteen penalties and three fumballs Denver and easy win
over Cincinnati twenty eight to three. Both teams are two
and two. The baseball postseason begins today with Detroit and Cleveland.
San Diego visits the Cubs. The Red Sox and Yankees
meet in New York. The Red sway of the Dodgers
in LA. The Minnesota Twins fired manager Rocco Baldelli. The
San Francisco Giants fired manager Bob Melvin. 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 opp This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
With less than twenty four hours to go until the deadline.
The US government may be careening toward a shutdown. That
seems to be the way. Vice President JD. Van sees
a fiter to talks with Democrats at the White House.
Vance says, the Democrats need the budge on their healthcare demands.
You don't put a gun to.
The American people's head and say unless you do exactly
what Senator House.
Democrats want you to do, we're going to shut down
your government. That's exactly what they're proposing out there.
And that was Vice President JD. Vance at the White
House this morning.
We're joined by Bloomberg's Rosalind Matheson and roz I guess
it makes you wonder whether all those talks at the
White House, after they were delayed by the President for
several days, got us any closer to a resolution on
just how far apart these parties are right now.
Good morning, Good morning.
Well, as you say, after these talks yesterday, they do
still seem quite some way apart, and certainly there's a
lot of bluster going on. You just played the comments
from Vice President Jeddie Vance. You also had the Senate
Democratic Leader Chuck Schumer saying there are still large differences
between us and he was speaking after the meeting. Obviously,
the key part of this is the Democrats demands to
extend healthcare subsidies and also to reverse some of the
funding cuts to Medicaid that were included in Trump's big,
big tax bill that was passed earlier this year. So
the question is, at this stage, is there any room
for compromise and what might that look like. Will the
Democrats entertain a compromise because the White House is clearly
setting up a narrative that any shutdown and its resultant
impact is because the Democrats wouldn't budge. And even if
there is something, is it merely a stop gap? Are
you just agreeing to keep funding going for a week
or ten days while you try and get a deal done.
Is it simply pushing this down the road by whek
to try and create some space to negotiate. But it
does seem fundamentally there's still that disagreement, particularly around healthcare subsidies.
Now when it comes to the healthcare rise, are we
hearing any sort of wiggle room from the Democrats as
far as what aspects of the healthcare demands they're making
that they might be willing to put off until some
kind of stopgap is passed.
Well, there is some conversation around that, and there was
a suggestion at least again from the Democratic leader, that
they could settle for some of their priorities rather than
all of them. And the key one here, the red
line seems to be extending the subsidies for affordable care
at premiums and that seems to be the number one
And so can they have an agreement around that and
push some of the rest of it down the road,
or do they agree to extend those subsidies at least
for a certain period and then phase them out in
a more staggered fashion down the line. I mean, that
seems to be really the red line there that we're seeing.
I mean, also, we did have Jeddie Vance saying that
some of the Democratic positions Donald Trump thinks are reasonable
quote reasonable, and that may be addressing real health care
funding is one area from compromise. So there are some
little glimmers of hope there so far on that side,
but there's still, you know, fundamentally quite big differences going on.
Now.
We have had government shutdowns in the past. Who've seen them?
Heaven for you know, various lengths of time. But in
terms of what we could be looking at around economic impact,
the impact on the data, what are some of the
scenarios here.
Well, we know that it would delay some of the
key economic indicators, particularly again the employment report that's still
out on Friday. You also have the usual thing of
hundreds of thousands of federal workers being temporarily furloughed and others,
you know, work without pay because you do need to
keep certain services going, and the knock on effect of
that could be brief, or it could be protracted, you know,
shutdowns of those kind of cliff moments where people do
end up pending to negotiate.
So the question would be how long it went on for?
Is that as long as the pre be shut down,
which occurred of course in twenty eighteen, twenty nineteen, and
that's when funding lapsed for five weeks?
Is it as long as that do you see a bigger.
Impact on the economy and therefore on markets, But in
a way also for markets. A lot of the decision
making has coalesced around the White House and arguably less
so in Congress. Donald Trump uses a lot of executive
orders on things that impact the economy, including on the
trade side, in a way perhaps bypassing Congress, but obviously
some of the money that fans out into these programs
do go through a congressional route. So the impact on
the economy, it's a bit hard to say in advance. Again,
it depends primarily on just how long a shutdown would
go for.
All right, well, we know that it's not too long
until that deadline, so we'll continue to keep our eyes
on Washington.
Thank you for this.
That's Bloomberg's Rosalind matheson with us this morning. Now we
want to turn to the latest on the war in Gaza,
because we've had developments from Washington on that front as well.
Both President Trump and Israeli Prime Minister Benjamin Natanya, who
after a White House meeting say they have agreed to
a twenty point plan designed to end the war. Now,
the question, it seems, is will Hamas agreed to this
plan and for more on that, we're joined by Bloomberg
Horizons anchor Jumana Bursecci.
Jumana, thank you for being with us.
I mean that is an open question, isn't it, considering
that Hamas has walked away from previous peace plans.
In gossip.
Good morning, Yes, good morning to you. Yes, most definitely.
We are awaiting an official response from Hamas. One senior
representative from HAMAS spoke to Al Jazira channel last night
and said that they were reviewing the proposal, that they
had not been privy to it beforehand. But the question
does remain are they going to accept the terms of
the proposal, because this could be quite a watershed moment.
And I would say, you know, one of the key
characteristics that changes or that distinguishes yesterday's proposal from prior
proposals is it does have buy in from many regional allies.
Many Arab states have thrown their weight behind it, including
the likes of Qatar. A very important step was taken
prior to the release of this twenty point plan, whereby
the Israeli Prime Minister had a phone call with the
Katari PM, extended an olive branch and expressed regrets over
the attack that took place in Doha. And both sides
have now sort of pledged to push on with these
mediation efforts. And this morning you got a statement from
all Arab states in the region saying that they were
behind and putting their weight behind the proposal put forward
by the Trump administration. So that does signal that they,
in turn, perhaps will put pressure on Hamas to accept
the terms of this proposal. But of course it would
mean that Hamas would have no rule in no say
in future governance of Gaza, and also would lead to
their eventual disarmament. So we're waiting to hear from them.
They have seventy two hours to respond.
Now, that was a fundamental aspect of what Hamas has
rejected in the past, this idea that it would have
no role in a post war Gaza. I mean, how
much pressure can the Arab leaders put to bear on Hamas.
I mean, who's layer to negotiate given that attack that
happened recently on Hamas leaders in Doha.
Yeah, well, the attack on Hamas leaders actually was unsuccessful
in that it didn't manage to take out the senior
Hamas negotiators, so they're still operating. I will say that
one of the points of the plan includes an offer
of amnesty to any Hamas operative who hands over their
weapons and commits to coexistence. So that's an important line.
So we'll see whether that incentivizes them. Ultimately, we've been
here before, They've seen proposals like this in the past,
but I think the real difference this time around is
that you have Arab support behind it.
And if you look.
At the details of the proposal, you know there are
several paragraphs about what post Hamas Gaza governance will look like,
including an apolitical Palestinian committee that will set up there
will be oversight by what President Trump is calling a
transitional Board of Peace, chaired by none other than himself,
alongside the former UK Prime Minister Tony Blair and other
heads of state yet to be named. And then it
also talks about a security force that's going to be
established by Arab states, including the likes of Egypt and Kuttar,
who will take over some security operations within Gaza until
there is a credible Palestinian force that can do the same.
But ultimately there is also a line in this twenty
point proposal that is about this May, and the May
is important here, maybe paving a pathway towards an eventual
Palestinian states with the Big Caveat of Thats obviously not.
Being a part of it.
But then the Palestinian authority also having to reform itself,
which is one of the key parameters that is set
by the Israeli government.
Just thirty seconds left that language about a Palestinian state.
Could that comp things for Prime Minister NATANYAHUO and some
of the hardliners in his coalition.
Yes, absolutely, very important question, and that There's been a
lot of speculation about the wording behind it because it
says may not necessarily will and so there is some
obscurity in the phrasing. But I think it had to
be put in there because of some of the efforts
that are taking place behind the scene from the Arab
states and to put a line under the Katar attack.
This is something that the Gulf allies in the region
had been pushing for. They would not want to continue
with the discussions without some form of a promise or
a pathway towards eventual Palestinian statehood.
This is Bloomberg Daybreak, your morning podcast on the stories
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