Trump Hails Japan Alliance; Hurricane Melissa Nears Jamaica at Category 5 Strength

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 latest from President Donald Trump's
trip to Asia. This morning, the President is in Japan,
where he's been speaking to sailors aboard the USS George
Washington aircraft carrier and heaping praise on Japan's new Prime Minister,
sana A Takeichi.
This woman is a winner. So you know, we've become
very close friends. And all of a said, because their
stock market today at our stock market today hit an.
All time high, that means we're doing something right. The
President was joined by the Prime Minister, who promised to
fundamentally reinforce her nation's defense capabilities. Earlier, the two leaders
met for the first time in Tokyo, and President Trump
said he stands behind Takeichi.
Anytime you have any question, any doubt, anything you want,
any favors you need, anything I can do to help Japan,
we will be there.
We are an ally at the strongest level.
President Trump and Prime Minister Takeichi signed documents samed at
formalizing some of the trade agreement made under her predecessor
that includes a Japanese pledge to fund five hundred and
fifty billion dollars in US projects. The list of companies
interested in funding them includes SoftBank, Westinghouse, and Toshiba in
areas ranging from energy to AI and critical minerals.
Let's turn now to another major story that we're following
this morning, Nathan. Hurricane Melissa has intensified into a Category
five storm as it draws closer to Jamaica. On Bloomberg,
meteorologist Craig Allen is tracking the storm for US.
Hurricane Melissa is now in the top ten for the
strongest on record in the Atlantic. Maximum sustained wind speeds
continue around one hundred and seventy five miles per hour,
with gusts over two hundred and fifteen miles per hour.
Jamaica has already been taking a beating through the but
now the storm, which had been stationary for a few hours,
seems to be looping around and starting that north northeast
urn right towards Jamaica. And at this very slow speed
of only two to four miles per hour, it's likely
that devastating hurricane wins the storm surge of nine to
thirteen feet and twenty to thirty inches of rain or
more will last right through the day on Tuesday. It
may begin to taper down during Tuesday night, but not
before parts of the island are decimated.
I'm Bloomberg meteorologist Craig allen Or reporting to stay with Bloomberg
for team coverage of Hurricane Melissa all morning long.
The care in our coverage of the government shut down
in Washington continues now in Today twenty eight the country's
biggest federal workers union, the American Federation of Government Employees,
is calling on Democrats to go along with Republicans demand
for a clean short term spending bill, but Democrats are
mostly resisting that call. Senate Democrat Andy Kim of New
Jersey says his party sticking to its demand to extend
expiring health insurance subsidies.
A number of Republicans support extending these subsidies. It's just
as Speaker Johnson is preventing them from even being here
in DC for negotiations. You know, this is a dereliction
of duty and an abdication of leadership.
Senator Andy Kim's comments are being echoed by Republican Senator
Tom Tillis in an interview with Bloomberg Government, the North
Carolina Republican says his party should extend Obamacare subsidies for
two years and address cuts to Medicaid provider payments or
risk antagonizing voters. Tillis is leaving the Senate when his
term expires next year.
We turn to the markets now. Nathan ware Stalks enter
the session in record fashion. In fact, all four major
indexes closed at a record high, and Lorie Calvacina is
head of US equity strategy at RBC Capital Markets.
We're hitting levels that we, you know, have kind of
marked the ceiling in the past decade. But we're not
sitting at tech bubble highs either. So I think we
have kind of a plain old fashioned valuation problem where
the have gotten a bit over their skis. But I
don't think that this compares, frankly, to that peak in
two thousand. I don't think that this is bubble territory.
And as RBC Capital Marcus Lurie Calvesina and the S
and P five hundred closing yesterday at sixty eight seventy.
Five, Well investors now turned their attention Karen to earnings
and the FED. J. Powell and Company kickafe two day
meeting on interest rates today, and we get a preview
from Bloomberg's Michael McKee.
For the FED, it's an existential question. How do you
know where you're going if you don't know where you are?
Almost all data on the economy has been cut off
by the government shutdown. Their rate decision will be based
largely on what policymakers thought was happening before the shutdown
and what they've picked up from companies and consumers in
their districts. It appears they go into the meeting more
divided than they have been in years. At least three
members have suggested it's too risky to cut rates now.
CPI inflation, the one data point we did get is
still rising about as many say the economy is day
inangeriously close to stalling and a cut is needed. The
biggest group is in the middle, perhaps leaning towards a cut.
That's what FED Chair j Powell has let the markets price,
and as the two day meeting starts, that's the best bet.
Michael McKee, Bloomberg Radio.
All right, Michael, thank you well. Goldman Sachs CEO David
Solomon is downplaying risks in the credit market following the
collapse of First Brands and Tricolor holdings. Begin More from
Bloomberg's John Tucker, John, Good Morning.
And Karen. Solomon describes recent losses at the regional banks
as what off issues that shouldn't spread to the broader market.
I don't see anything in the context of a handful
of bad credit situations. It's leading me to say that
we have a systemic issue around the corner.
Solomon also says the recent losses at the regional banks
tied to alleged fraud, serve as a reminder to stay
vigilant about underwriting standards. He was speaking at the Future
Investment Initiative in Riod. Solomon sounds more optimistic than some
of his counterparts. The failures of First Brands and Try
prompted JP Morgan, Chase CEO, Jamie Diamond and worn. When
you see one concroach, they're probably more you know you are,
come John Tucker, Bloomberg Radio.
All right, John, thank you, And speaking of Jamie Diamond,
he is continuing his push for workers to return to
the office. He is also at the Future Investment Initiative
conference in Riot and says junior bankers aren't able to
learn as much when they work from home.
Zoom is a great tool, so I'm not making fun
of zoom, but you know, younger people being left behind.
They're socializers the tier rating, they don't get ahead. But
even all of us in management when we meet on
Hollywood Squares is not as honest a conversation. You don't
have that constant follow up.
Earlier this year, JP Morgan Chase CEO Jamie Diamond ordered
all his employees to return to the office five days
a week, ending a hybrid work option for thousands of staff.
Well.
Nathan Banks are also in focus in Europe this morning.
HSBC and BMP Parrienbaugh reported earnings earlier this morning, and
we go to London and get the very latest Bloomberg's
Uan Pass.
Good morning, Ewan, Karen.
And Nathan Banks taking center stage today. With Europe's biggest
lender raising its profits outlook for the year, HSBC shares
gaining here in London. That's despite third quarter earnings taking
a one point one billion dollar hit to cover potential
losses from fraud litigation and across the water it's provisions
for credit losses making headlines from BNP Paribar, France's largest lender,
reaffirming its annual targets but putting aside more money for
souring loans in its trading units. BNP shares lower this
morning in London. I'm you in Pots Sploomberg.
Radio all right you and thank you.
And Amazon has reportedly said to cut tens of thousands
of jobs as soon as today. To get more on
that from Bloomberg's Lisa Mateo Lisa.
Nathan, It could be the largest layoffs since rolling reductions
in late twenty twenty two and early twenty twenty three
that ultimately total more than twenty seven thousand corporate employees.
Reuters reports the terminations this time around, well, it could
affect as many as thirty thousand jobs. Horses telling Bloomberg
it'll umpact corporate roles in several key departments, including logistics, payments,
video games, and the cloud computing unit. If you remember,
back in June, CEO Andy Jase said that Amazon's increasing
use of artificial intelligence would likely shrink its workforce. Lisa
Matteo Bloomberg Radio.
Time now for look at some of their 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. Republican lawmakers seized on front runner Zeron
Memdanni from mayor of New York. As next year's midterms approach,
GOP members are trying to make the self described Democratic
socialist the new face of the Democratic Party them. Donnie
spoke to ABC about his proposals for free transit and
childcare funded by tax increases that the New York Governor,
Kathy Hokeel has not shown support for the Spider endorsement.
I think it makes the most sense in the wealthiest city,
in the wealthiest country and history of the world, that
we actually ensure we have the funding necessary to make
it a place that New Yorkers can afford. And I'm
looking forward to working with Governor Hockle.
About two hundred and twenty three thousand people have turned
out so far for early voting in New York. Meanwhile,
a new poll has Donning opponent Andrew Cuomo closing the gap.
According to Suffolk University poll, the former New York governor
cut them Downnie's lead in half to only ten points.
Does anger in this city is frustration in this city?
Is all perfectly Republican? Curtis Lee with Trails in third
with about eleven percent of those polled.
The people will determine who the next mayor of the
City of New York is shore they have votes once
they had tallied.
On the night of November fourth, Audio courtesy of CBS two,
New York City public schools unveiled an emergency alert system
meant to speed response in an active shooter situation. The
new system includes a panic button for schools that can
initiate a police response in under ten seconds by overriding
the nine one one call flow. New York City Mayor
Eric Adams says the alert system is the first of
its kind in the country.
We will save lives by providing rapping response in active,
active shooting situation.
According to Every Town for Gun Safety, in twenty twenty five,
there have been one hundred and forty one school shootings nationwide.
Global news twenty four hours a day and whenever you
want it with Bloomberg News Now. Michael Barren, this is
Bloomberg Camy.
Thanks Michael all time now for our Bloomberg Sports update,
and for that we bring in John stash Hour.
Thanks Daring. Game three of the World Series in Los
Angeles lasted six hours and thirty nine minutes. It when
eighteen and ins. It was tied at five in the
seventh inning and was still five to five in the
eighteenth when Freddie Freeman, who hit a walk off Grand
Slam to win Game One of the World Series last year,
hit another walk off home run that met the Blue
Jays six to five. They lead the series two games
to one, and I put ball in Kansas City Patrick
Mahomes three touchdown passes, the Chiefs meet the Commanders twenty
eight to seven at the 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 Appum. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. As we continue to track
what is likely to be the strongest storm ever to
hit the island of Jamaica, Category five Hurricane Melissa continues
to churn, threatening widespread devastation through much of the Caribbean.
For the very latest we are joined now by Bloomberg
meteorologist Craig Allen and just about all the accounts Craig
of what this storm is doing, what it could do,
just seem increasingly dire. What is the very latest, good morning?
It is It comes across as one of the most
grit indications that I've seen for an island, one of
those Caribbean islands down across the sea there that it
appears that we are going to experience or has already
with this five o'clock report that just came in. I'm
looking ahead right now as I'm speaking to you. It
is the most intense tropical system worldwide for this year. Okay,
the pressure is now down to those who understand this
nine oh one millibars that surpasses some of the most
intense super typhoons in the Pacific. And now that Melissa
is down to this particular pressure, it's also the seventh
most intense Atlantic hurricane on record since eighteen fifty one.
So think about that and the type of system that
we have here with one hundred and seventy five mile
per hour winds approaching the south coast of Jamaica at
only three to five five miles per hour. In other words,
this type of wind could be affecting Jamaica more than
twelve hours at a clip, twelve to eighteen hours perhaps
before it is able to get to the north coast.
So you take a battering of one hundred and seventy
five mile per hour winds gusting over two hundred, you
have rainfall of twenty to thirty inches, especially in the
more mountainous terrain, which will result in just devastating mud slides.
And you've got a storm surge that comes into the
south coast at nine to thirteen feet. I mean most
people are five to six feet in height. Think about
salt water coming up nine to thirteen feet that inundates
houses along the south coast of Jamaica. So all of
this is probably, as I said, one of the most
grim pictures I have seen painted for a storm hitting
a Caribbean island.
What is driving this intensity, Craigan? Why is this storm
moving so slowly.
Right now?
And for the last couple of days there's been absolutely
no steering currents at all. So you've got Melissa sitting
over the warmest water in the Atlantic anywhere in the Atlantic.
The water temperature there is about eighty five eighty six,
and that is perfect fuel. That's what a hurricane derives
its energy from the warm, moist air that is rising
coming up from this eighty six degree water, and it's
just sitting there and cooking. I mean, think about how
it has not moved very much because of the lack
of steering currents up to this point. But the only
good news that I could think of right now is
that eventually, over the next let's say, twenty four hours
or so, there will be something that comes through in
the upper atmosphere that's going to pick up the storm
and pull it off to the north and north ear
So by the time that it hits eastern Cuba, it's
still going to be a major Category five. But it
then goes towards the Turks and Keikos the Bahamas, and
it's starting to move a little bit faster. It's also
away from the warmest water, and therefore it should not
be quite as intense when it gets to the Bahamas.
There will still even be hurricane conditions when it gets
to Bermuda later this week, but it won't be quite
as intense as it is right now, Nathan.
But as we say, it's going to be a very
very rough twelve to maybe even twenty four hours for
the Caribbean. Thank you for this, Craig as Bloomberg mediorologist
Craig Allen part of our team covering Hurricane Melissa this morning.
But now we want to get back to our top
story of this Tuesday morning. President Trump in Tokyo keeping
praise on Japan's new Prime Minister sun Antuckiichi.
We very much appreciate the trade.
We're going to do industry together, I think.
More than ever before.
That was the President during his first meeting with the
new premiere in Tokyo. They've also been speaking aboard a
US aircraft carrier, the USS George Washington, promising to boost
defense and security cooperation for the very latest joining US
this morning from Hong Kong is Bloomberg's Jill Desis. Jill,
It sounds all indications like a pretty solid meeting for
the new Japanese Prime minister.
What are some of the deliverables coming out of it?
Good morning, Yes, good morning. Well, I think there's a
couple of things really to look at out of this meeting.
First of all, you know, I suspect that this is
one that Trump himself was probably looking forward to quite
a bit. The new Japanese Prime Minister Takeiichi. So you know,
I mean, in addition to being the first woman prime
minister of Japan, she also shares that she's a protege
of Shinzo Abbe, the former prime minister who Trump was
incredibly close with during his first administration when he was
elected back in twenty sixteen. You know, she's somebody that
runs more conservative, is also more hawkish, particularly on the
foreign policy defense side. And so what you saw out
of today was was again a couple of things. First
of all, some.
Announcements about Japan increasing defense funding. That something that Trump
has certainly been pushing a lot of his you know, allies,
you know in the Pacific, in the Pacific included to
really kind of gun for so I think that you know,
that's something that you know, he was obviously very happy
with today. The other thing too, that I think we
saw that I was interesting was some agreements that were
more related to the US Japan trade deal. Now these
are agreements that were ultimately reached you know a little
bit earlier this year. We did get a little bit
more detailed. There was additional promises when it comes to
rare earths, for example, But you know those some of
those details I think are still a little bit in flux,
still a little bit vague, but it does seem like
at least there's some broad, you know, sort of sweepy,
you know, pledges for further cooperation. So I think if
you're Donald Trump today, you're probably feeling like you've you've
had a pretty good diplomatic victory.
Yeah.
I guess some of the details that I've heard coming
out of the Aircraft care your appearance in particular as
the President saying that these approved the first order of
thirty five fighter missiles and that sort of thing. But
in terms of the trade pact as well, Jill, what
are some of the details that we're getting.
Out of that.
Yeah, I mean again, I think you know, the big
thing that we were looking out for was, you know,
what else is happening with critical minerals, including rare earth.
So what the agreement between these two is ultimately signed
was supposed to formalize some elements of that trade deal
that Trump ultimately broke her unto her Takegi's predecessor. Still again,
there's just still lacking in some details on that particular
pledge included this idea that Japan could potentially fund five
hundred and fifty billion US dollars worth of projects in
the US, you know, very similar to some of these
investment pledges that the Trump administration has gotten from some
other nations. Now, you know, a lot of these packs
were still very light on details. The critical minerals one
in particular, we had some pledges from the US and
Japan to coordinate on permitting and financing and mapping, but
we didn't get a whole lot in terms of you know,
those actual you know, miniche that I think would go
into these trade agreements. And remember, when it comes to
trade agreements, I mean, things get really really complicated. So
I think, you know, maybe still more to come here.
This is Bloomberg day Break, your morning podcast on the
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