Senate Advances Plan to End Shutdown; Trump Teases $2000 Tariff Dividend

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0:41That's Vanguard.com slash audio. All investing is subject to risk, Vanguard Marketing Corporation Distributor. Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London. We're the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled, and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now.

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1:50Bloomberg 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 lift in futures this morning comes on signs that after 41 days, the longest government shutdown in U.S. history may be close to coming to an end. We're getting very close to the shutdown. We'll never agree to give any substantial money or any money to really prisoners, illegals that come into our country. And I think the Democrats understand that. That was President Trump speaking before the Senate voted 60 to 40 last night to advance a bill that would fund most of the government through January 30th while providing full year funding for agriculture, Veterans Affairs and Congress.

2:40Eight moderate Democrats broke with their party leaders to break the filibuster, including independent Angus King, who caucuses with Democrats. He says Republicans weren't willing to budge on Democrats demand for a deal on expiring health insurance subsidies. The question before us is how's the best way to get there? And it was our judgment after six weeks going on seven weeks of this shutdown that that path wasn't working. That was Independent Senator Angus King of Maine. We get more from Bloomberg's Jill DeSys. The moderate Democrats that the Republicans were able to sway over to achieve the 60-40 vote say that they were promised basically another vote on some Obamacare tax provisions that was ultimately at the heart of the shutdown.

3:23So that could come sometime in December if that's what was ultimately achieved here. Bloomberg's Jill Deesis reports it's still not clear how quickly the shutdown will end even after this procedural step. The Senate needs consent from all its members to end the shutdown quickly. Any one of them could force days of delays. Nathan, while the shutdown continues, millions of Americans are still facing flight delays and uncertainty over government food aid. Now a federal appeals court has ruled against the Trump administration and its bid to only partially fund SNAP benefits, while it challenges a lower court's order to fund the program at 100 percent.

3:57The Department of Agriculture and other agencies have argued fully funding November SNAP benefits during the shutdown would limit funds for other programs. But the appeals court ruled that doesn't outweigh the harm of leaving tens of millions of Americans without food as winter approaches. Now, the government shutdown has added to headaches for travelers across the country. U.S. airlines canceled more than 2 ,700 flights yesterday, mostly because of the shutdown and the Federal Aviation Administration's order to reduce air traffic. But compounding the problem was frigid weather delaying thousands more flights.

4:30Bloomberg meteorologist Craig Allen is tracking the latest weather pattern. The core of this unseasonably cold outbreak is plunging south and east this morning, and it's going to bring sub-freezing temperatures to about three dozen states from the plains to the east coast. And rather than rise, the mercury may tumble all day as much as 20 to 30 degrees from highs on Sunday. So tonight's lows will be in the 20s and 30s. It'll be felt from the Canadian border all the way down to the Gulf Coast, with numerous record lows expected in Texas, Louisiana, Mississippi, Alabama, even Florida. And lake effect snow will also be a big problem, downwind of all the Great Lakes, but most notably running down the entire length of Lake Michigan.

5:10It's going to result in near-treacherous to near-impossible travel conditions, especially in Chicago and its suburbs. That's Bloomberg meteorologist Craig Allen. Chicago's O 'Hare International Airport is a major hub for United and American airlines. Nathan, President Trump suggested tariff revenue could be used to fund payments of at least$2 ,000 to most Americans. In a post on Truth Social, President Trump said that the government would soon begin paying down the country's debt. Treasury Secretary Scott Besson says Trump's suggestion could come through the tax cuts passed in the economic policy bill earlier this year.

5:44It could be just the tax decreases that we are seeing on the president's agenda. You know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans. So, you know, those are substantial deductions that are being financed in the tax bill. Treasury Secretary Scott Besson made the comments on ABC's This Week, and you can catch the program Sunday afternoons on Bloomberg Radio. And Karen, President Trump has reportedly pardoned Rudy Giuliani, along with other people allegedly involved in attempts to overturn the 2020 presidential election. Justice Department pardon attorney Ed Martin posted a list on X of prominent Trump allies who've gotten reprieves.

6:24It also includes attorneys Sidney Powell, Boris Epstein, John Eastman, and former White House Chief of Staff Mark Meadows, along with 72 others. It does not include President Trump. The pardon document states that explicitly. Well, Nathan, there are more signs. Tensions between the U.S. and China continue to ease. China has added more than a dozen fentanyl precursors to a list of controlled exports to the U.S., Mexico, and Canada. The move represents a step in fulfilling China's pledge to combat the flow of synthetic opioid ingredients to the U.S. Meanwhile, the Trump administration has suspended a probe into China's shipbuilding industry for one year.

6:58Turning to the markets now, Karen, as we mentioned, futures are higher on optimism. The government shutdown is coming to an end. S &P futures right now are up 1%. NASDAQ futures up one and a half. Valerie Teitel tracks the markets for Bloomberg. Well, look, I think for many weeks we thought there was really limited progress on the shutdown. We finally get a breakthrough and we're seeing a very positive reaction from the equity market. Now, this all started on Friday. There was a steep reversal in the U.S. equity market into the close. And with futures following through this morning, we've now essentially erased half of the drawdown in the S &P 500.

7:32Last week was a really bad week for the equity market. The Nasdaq had its worst week since early April. The S &P 500 had a 5 % drawdown from all-time highs at the end of October. Bloomberg's Valerie Teitel says the S &P 500 had risen for three straight weeks before last week's losses. Well, Nathan, several stock strategists say solid earnings will fuel a market rally next year. Morgan Stanley's Michael Wilson says there were clear signs that an earnings recovery was underway. UBS strategists forecast the S &P 500 will hit a record 7 ,500 points by the end of 2026, and that's about an 11 percent gain from current levels.

8:12And Oppenheimer's John Stoltzfus says it's too early to give up on chipmakers and the outlook for AI. In company news, Karen, Pfizer has won the bidding war for the weight loss drug startup MetSara securing the$10 billion deal after Danish drugmaker Novodortisk said it did not plan to increase its offer. MetSara cited a call from the Federal Trade Commission regarding potential risks from proceeding with the proposed Novo deal structure. And there's a new boss at Diageo, Nathan. The British drinks giant has named Dave Lewis as their new CEO. The former head of Tesco and chair of Halion is set to take up the role at the start of next year.

8:49The announcement comes just days after the British drinks giant lowered its full-year outlook for sales and profits, setting weak demand in China and the U.S. And Diageo shares, they are up about 7.5 percent this morning.

9:04Time 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 Monica Ricks. Monica, good morning. Good morning, Karen. and President Trump wants the Justice Department now to investigate meatpacking companies. We get the details from Bloomberg's Amy Morris in Washington. President Trump is accusing foreign-owned meatpackers of driving up the price of beef in the U.S. He asked the Department of Justice to open an investigation. The president posted on social media that he wants a probe into whether companies are driving up the price of beef through, quote, collusion, price fixing, and price manipulation.

9:38Trump announced the move days after his party suffered losses in key elections in which the winning Democratic candidates focused on the public's concerns about the cost of living. In Washington, Amy Morris, Bloomberg Radio. Later today, President Trump will hold a historic meeting at the White House and welcome the new president of Syria. Ahmed al-Shirah was once a leader of al-Qaeda in Iraq, but he severed ties with the terror organization and later overthrew Syrian President Bashar al-Assad. Edward de Regen is a former U.S. ambassador to Syria and Israel. It's a question of national security interests.

10:13What happens in Syria doesn't only affect the region itself. He says it could affect relations with Israel and the entire Middle East. President Trump became the first sitting president to attend a regular season NFL game yesterday in half a century, not since Carter in 1978. He watched the Washington commanders lose to the visiting Detroit Lions. And Blue Origin postponed a planned second flight of its New Glenn rocket yesterday in Florida due to weather conditions and unspecified ground equipment issues. The company says it's now reviewing opportunities for a new launch date and will eventually send two probes to Mars to find out why it lost its atmosphere.

10:52Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Monica Ricks and this is Bloomberg. Karen. Thanks, Monica. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. On an NFL Sunday came the news of the death of Paul Tagliabue at the age of 84. He was the NFL commissioner from 1989 to 2006. First game of the day, the best game of the day. Five lead changes in the first game ever played in Berlin, Germany. The Colts beat the Falcons in overtime. Jonathan Taylor rushed for 244 yards, scored three touchdowns. Also passing away Sunday was Lenny Wilkins, who's in the Basketball Hall of Fame as both a player and coach.

11:31He was 88. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Today's show is brought to you by Vanguard. To all the financial advisors listening, let's talk bonds for a minute. Capturing value and fixed income is not easy. Bond markets are massive, murky, and let's be real, lots of firms throw a couple flashy funds your way and call it a day. But not Vanguard. At Vanguard, institutional quality isn't a tagline. It's a commitment to your clients. We're talking top-grade products across the board of over 80 bond funds, actively managed by a 200-person global squad of sector specialists, analysts, and traders.

12:11These folks live and breathe fixed income. So if you're looking to give your clients consistent results year in and year out, go see the record for yourself at Vanguard.com slash audio. That's Vanguard.com slash audio. All investing and subject to risk, Vanguard Marketing Corporation Distributor. April 29th and 30th, Bloomberg House arrives in Miami at the Formula One Grand Prix. Set against one of the world's most electrifying sporting events, Bloomberg House brings business, investment, and culture together. Powered by Bloomberg journalism, real-time data, and forward-looking conversations. From onstage discussions to exclusive networking with global leaders, this is where ideas connect.

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13:01Coast 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. Now more than 40 days into the longest government shutdown in U.S. history, the Senate has taken a major step to bring it to an end, advancing a bill to reopen the government without the health subsidy extension that Democrats had demanded. New Hampshire Senator Jean Shaheen is one of the eight Democrats who broke ranks. I understand that not all of my Democratic colleagues are satisfied with this agreement, but waiting another week or another month wouldn't deliver a better outcome.

13:40That's New Hampshire Democrat Jean Shaheen following the 60-40 vote to advance this legislation in the Senate. And for more, we are joined by Bloomberg's Jill Deesis. Jill, good morning. Walk us through the deal that was made between Democrats and Republicans and what ultimately got these eight Democrats to crack. Good morning. Yes. Good morning, Nathan. So what ultimately happened here was this deal really only goes so far as funding part of the government, primarily Congress itself, plus the Department of Veterans Affairs, Department of Agriculture for the next year. And then it funds the rest of the government agencies through January 30th, just kind of implying that it's not going to be too much longer until we're kind of back here again.

14:24But it does reach a deal at least then to fund the government through that time. Also, there's some agreements here about repaying furloughed workers, et cetera. So that's really where we stand. In terms of the crux of the issue here, the issue that Democrats really kind of had at the heart of why they were, you know, what they were trying to double down on, that idea of extending those health care tax credits, what they've really only gotten from the Republicans here is a pledge that there will be a vote on that issue, on a bill on that issue in December. So nothing in terms of sort of like a long-term sort of fulsome commitment there.

15:01You really just have the opportunity for a vote sometime next month. I mean, whether that actually ultimately plays out in Democrats' favor, I think with, that's what you have to see here. But, you know, clearly, I mean, the fact that they did get these eight moderate Democrats on board with them, I'm not sure that the rest of the party is going to be too happy about that kind of agreement. So that's kind of where we stand now. They'll go in for another vote in the morning. But that's and then, you know, that kind of paves the way for then a House vote there. But that's kind of where we stand.

15:27Yeah, that's something that Senator Shaheen seemed to allude to in that comment just there with the fact that the Democrats had sort of held out against this idea of going forward with a promise of a vote on the subsidies. What does that say about where this could where this bill could go in the House? Yeah, I mean, look, it's a good question. So I think in terms of, you know, where we ultimately end up in the shutdown, I mean, I guess, you know, the big difference here in terms of the House is that, I mean, you know, the Republicans have a majority there. Maybe, you know, you ultimately don't see as much blowback.

16:02But I think, you know, it really does raise a lot of questions about, you know, some of these issues that the Democrats have really been fighting for here. Right. I mean, I think that the fact that they've even reached a deal here, it does kind of demonstrate how difficult it is for Democrats to use any kind of leverage they have in a Republican controlled Washington to push back on Trump's agenda. I mean, this is something that, you know, a deal they were trying to reach just kind of on health care tax credits, you know, more meaningfully. They were trying to reach this for weeks. But, you know, now, I mean, we're in the midst of the U.S.'s longest government shutdown ever.

16:36Clearly, they weren't able to, you know, sort of make any breakthrough here. So we'll have to see kind of where that vote ultimately materializes in terms of, you know, a future vote on health care tax credits in December and whether the Democrats were able to actually take that and move it forward into any meaningful progress to accomplish anything on their agenda. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m.

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