House to Return for Shutdown Vote; Trump to Host Finance CEOs at White House

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0:35Search for Bloomberg Surveillance on Apple, Spotify, YouTube, or anywhere else you listen. On the East Coast, listen at lunch. And on the West Coast, listen as soon as you wake up. That's the Bloomberg Surveillance Podcast with Tom Keen, Paul Sweeney, and me, Alexis Christophorus. Subscribe today wherever you get your podcasts. Bloomberg Surveillance, essential listening each and every business day. 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, the longest government shutdown in American history is close to coming to an end at the 43-day mark.

1:22The House is coming back into session this afternoon for the first time since before the shutdown began to vote on a measure that would reopen most of the government through late January. House Minority Leader Hakeem Jeffries says it's the end of a taxpayer-funded vacation for Republicans. These people have been missing in action, absent without official leave, running scared, but they can no longer hide. Minority Leader Hakeem Jeffries says House Democrats will oppose the bill, but Bloomberg's Eric Wasson reports it is likely to pass. And it'll be a tight margin for House Speaker Mike Johnson.

2:00He only has a two-vote margin. Democrats are lining up against it. You know, the minority leader, Hakeem Jeffries, has said he will vote against it. He's whipping his members to vote against it because it does not contain an actual extension of the ACA premium tax credits. But there are some Democratic members. I'm looking at Henry Cuellar, Jared Golden, and others who are likely to cross party lines and vote for this. And so I'm expecting the government to be reopened by Thursday morning. And Bloomberg's Eric Wasson reports President Trump has said he will sign the bill. Until the government reopens, Nathan, millions of Americans are likely to keep missing out on food assistance.

2:37The Supreme Court has extended a pause on$4 billion in SNAP benefits, siding with the Trump administration with a block on lower court orders that required immediate full payment for about 42 million recipients. The administration told the high court that resuming the benefits could upend the deal that Republicans made with eight Senate Democrats to end the shutdown. And Karen, some House lawmakers could be contending with airport delays as they make their way back to Washington to vote on the deal. Airlines are still being told to thin their flight schedules. Transportation Secretary Sean Duffy says the cutbacks will get worse if the shutdown continues.

3:13I've had questions about what happens for Thanksgiving. There's a lot of Thanksgiving travel. what's going to happen during that time frame. I'm going to tell you we are not going to get to Thanksgiving. Transportation Secretary Sean Duffy spoke from Chicago O 'Hare, one of the airports hit hardest by the FAA mandate to cut flight schedules by 10 percent by the end of the week. Today, there could be some relief. As of early this morning, FlightAware showed fewer than 900 domestic and international flights canceled. That number could rise through the day, but Wednesdays tend to be slow travel days.

3:45Nathan, my lawmakers get ready to vote on the shutdown down deal. President Trump is getting ready to host top financial executives for a dinner at the White House. And we get more with Bloomberg's John Tucker. The move is aimed at solidifying support of America's business elite. We're told J.P. Morgan Chase CEO Jamie Dimon will attend, along with Goldman Sachs' David Solomon, Nasdaq's Adina Friedman, BlackRock's Larry Fink, and Morgan Stanley's Ted Peck. The dinner comes as Trump faces rising political pressure on the economy and affordability. Those issues anchored Democratic electoral wins last week in New Jersey and Virginia.

4:20Trump boosted his support among Wall Street's elite in the 2024 campaign with promises to lower taxes and enact sweeping deregulation that spurred optimism over his economic agenda. I'm John Tucker, Bloomberg Radio. John, thanks. Turning to markets, optimism over an end of the shutdown has stocks moving higher once again this morning. The Dow Jones industrial average closed at a record high yesterday. And John Stoltzfus, chief investment strategist at Oppenheimer, is bullish going forward. When we look at it, if anything, we think the rally has broadened, but it's still driven by technology because technology like credit makes the world go around when it comes to finance.

5:00And the market, I really believe, no matter what the turbulence is in Washington or Beijing or Moscow, ultimately what they're really caring about is revenue growth and profit growth, and we've got it. Oppenheimer chief investment strategist John Solzfuss has a 7 ,100 price target for the S &P 500 by the end of the year. That's about a 4 % gain from current levels. Well, helping to lift stocks this morning, Nathan, advanced micro devices. That stock is up more than 5%. NVIDIA's nearest rival in AI chips is predicting accelerating sales growth over the next five years, driven by strong demand for its data center products.

5:38At a company event in New York, CEO Lisa Su said annual revenue growth will average more than 35 percent over the next three to five years. And when it comes to AI adoption, Karen, Federal Reserve Governor Michael Barr says there needs to be clear guardrails as the financial sector looks to adopt artificial intelligence in its core functions. Speaking at the Singapore FinTech Festival, Barr said regulators need to get the balance right between innovation and stability to ensure that AI boosts growth and productivity over the long term. And I do worry that in the current environment, speaking only for the United States, speaking only about the United States, but not for the United States, being only about the United States, I worry that we're going to let that pendulum swing too far and lower our guardrails in a way that opens us up to too much risk.

6:29And some of the risks Fed Governor Michael Barr is flagging include market manipulation and collusion. While Nathan Visa is testing the ability for businesses to send stablecoins directly to consumers' cryptocurrency wallets for global payouts. The stablecoin payout option targets growing demand for fiat-backed digital tokens among gig workers and digital creators in emerging markets where local currencies may be volatile. And Karen, the International Energy Agency is further tempering its stance on an imminent peak in oil demand, reinstating a scenario in which global consumption keeps growing to the middle of the century.

7:04Bloomberg's Will Kennedy has more from London. One of the reasons that oil demand is still rising in the short and medium term is that it's relatively plentiful and relatively cheap. And that means that the shift to electric vehicles, and the IA was explicit about this, may not be quite as quick as people expected some years ago. Bloomberg's Will Kennedy says in its latest report, the IEA reintroduced a scenario in which consumption rises 13 percent by 2050. This morning, oil is moving lower. NYMEX crude's down 1 percent, trading at$60.43 a barrel. Brent is down 0.9 percent at$64.56.

7:44It's 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. Aids to President Trump are reviewing potentially suspending or canceling federal funds that benefit New York City after Zoran Mamdani's victory in the mayoral race. The White House is waiting on the president to approve any funding freeze with the administration, not detailing specific programs that could be affected. Mamdani said he will reach out to the White House as he prepares to take office, stating he is ready to work together, but will fight for New Yorkers if necessary.

8:22A baby formula maker is pulling all of its products off shelves after rising cases of botulism in children. At least 15 babies have been hospitalized across 12 states, including New York and New Jersey, with infant botulism after consuming By Heart formula. Dr. Stephen Abrams with the University of Texas at Austin has some advice for parents. If their baby has recently received it, they should watch their baby for any signs of like a droopy face or their muscles aren't working normally. Dr. Stephen Abrams, no deaths have been reported. A human rights watch group has released this report on the treatment of more than 250 Venezuelan deportees sent to a notorious prison in El Salvador.

9:09The director of America's division, Juanita Gobertas Estrada, says what they found was devastating. They were denied basic hygiene or sanitation. They had inadequate food provision. The water tanks that were used both for bathing and for drinking, detainees reported that it was yellow and had worms on it. America's division's Juanita Gobertas Estrada says the detainees were beaten and tortured repeatedly. The southeastern U.S. plunged into record low temperatures, affecting 18 million people under a freeze warning across Alabama, Florida, and Georgia. The northeast got an early visit from Old Man Winter as well.

9:51North of Syracuse, New York, about a foot of snow fell in Central Square. Wind gusts of up to 40 miles an hour made it feel even colder from New York City to Philly. Global News, 24 hours a day and whenever you want it with the Bloomberg News Now. Michael Barr, and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The Dallas Mavericks are 3-8 in nine months after their general manager, Nico Harrison, made the surprising move trading Luka Donsis to the Lakers. Harrison has been fired. On the court, Oklahoma City beat Golden State.

10:26The Thunder are 11-1. Managers of the year, Milwaukee's Pat Murphy in the National League for the second year in a row. The Brewers had the best record in baseball in the regular season. The Cleveland Guardians came from 15 down to win their division. Their manager, Stephen Vogt, won honors in the AL. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. I'm Carol Masser. And I'm Tim Stenevek, inviting you to join us for the Bloomberg Business Week Daily Podcast. Now, every day we are bringing you reporting from the magazine that helps global leaders stay ahead.

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11:58Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. By this time tomorrow, a more than six-week government shutdown could be over. The House is set to vote this evening on a bill that would reopen most of the government through the end of January, but without the Affordable Care Act subsidies that are set to expire at the end of this year. Democratic Congressman Jake Auchincloss says that issue needs to be resolved before premiums go up. Democrats do need to use this moment of leverage to get a win for the middle class.

12:35I've always agreed with that. But we've got to be flexible and get that push and pull of negotiation to actually secure the win. Democrat Jake Auchincloss of Massachusetts was a guest on Bloomberg's Balance of Power. This morning, we're joined by Dr. Lindsay Newman, geopolitical risk expert and columnist for GZERO Media. Dr. Newman, it's good to have you with us this morning. 43 days into the government shutdown. What's been gained? Good morning. Morning, Nathan. That is the critical question. What was it all for and who has won as a result of this longest government shutdown in U.S. history? Having spoken recently in recent days with some other additional Democratic senior representatives, the sense among the Democrats is that this is a win.

13:20In their telling, they've managed to shut down the government for a period of time that was beyond their expectations over this issue of health care subsidies, which they think resonates deeply with American voters. 20 million affected by the potential subsidies running out and the premium increases. They also feel as though the shutdown has revealed something about the current administration, about its real commitment to these issues of affordability and cost of living crisis, which will, as we know, be the central issues of the 2026 midterm election. But on the flip side of this view that the Democrats have, what did they really gain?

13:59Well, we know that there has been agreement by the Republicans to reverse certain firings that took place during the government shutdown. We know that there has been a commitment to make payments on back outstanding owed benefits under the Supplemental Nutrition Assistance Program, that SNAP program, which we're all very riveted about. There was a moratorium on future firings. And then there was this verbal promise that the Senate Majority Leader, John Thune, made to hold a vote on the ACA subsidies. And that seems to have pulled those senators who did cross-party across the aisle to vote for this end of the government shutdown.

14:46But we have to be wary because we've seen this story before. And this is exactly the story that happened around the 2018 government shutdown, which was then about immigration and promises that were made by then Senate Majority Leader Mitch McConnell to hold a vote on the DACA, those immigrants who were brought into the U.S. as children and were undocumented. And that vote never happened. And the DACA, you know, the DACA class of individuals remains very much unresolved. So if the issue isn't resolved after that vote, who pays a political price here? Will it be the Republicans that many Democrats have said will own rising health care costs?

15:25Or will it be Democrats who didn't hold out for a solution before reopening the government? Yeah, it's really the question. I mean, the Democrats have revealed their hand on this one, right, which is to say this is the issue that we think is going to take us through to the midterms in 2026, health care subsidies. And so it's really up to the Republicans now. They know the hand and they can very much address the health care subsidy issue in coming months, whether it's in that December vote or not, and take it off the table for the Democrats as and that would be a blow to Democrats. So I would say that if the Republicans do not actually make some sort of overture, do not extend those subsidies before they are set to lap, then it would provide momentum for the Democrats and would be detrimental to the Republicans.

16:13I think that's the story that will have a lasting impact and legs more so than the fact that those eight Democratic senators caved and ended the government shutdown. I don't think that anybody really ever thought in the Democratic Party leadership that they were going to whip up a sort of scenario where these subsidies were going to be dressed head on in this exact government, this funding bill.

16:55Street Time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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