Shutdown Ends as Trump Signs Spending Bill; Trump-Epstein Ties Back in Spotlight

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1:02Bloomberg 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, it's over. After 43 days, the longest government shutdown in American history has come to an end. On this vote, the yeas are 222, the nays are 209. The bill is passed. And after that vote in the House of Representatives, President Trump signed the bill to reopen the government and put federal workers back on the job starting today. We're sending a clear message that we will never give in to extortion because that's what it was. They tried to extort.

1:44The Democrats tried to extort our country. The president spoke at an Oval Office signing ceremony heard live on Bloomberg Radio. The new funding law does not resolve the expiring health insurance subsidies the Democrats wanted to extend. And Senate Republicans have promised to vote on that next month. And even though the government is reopening, getting it back to normal could take a while, as we hear from Bloomberg's Derek Wahlbank. We're going to be waiting for a couple of days to get federal workers paid. It may take a couple of days to get airlines fully back to their normal schedules. We're still waiting to see about these economic indicators that were delayed or paused during the shutdown.

2:23Most of them are expected to come, but maybe not all of them, but we're waiting to see when those are going to get put forward. That's Bloomberg's Derek Wahlbank. The White House says the October jobs and consumer price reports might never be released due to the shutdown. The Bureau of Labor Statistics has not released a new schedule of data releases. The agency could combine two months' worth of data to get back on track. Well, Nathan, as for airlines getting back on schedule, the Trump administration is hoping to bring that in for a smooth landing. The Transportation Department and Federal Aviation Administration are freezing flight reductions at 40 major airports at 6 percent rather than the 10 percent previously planned.

3:02FAA Administrator Brian Bedford says air traffic controller staffing is improving rapidly. Delta Airlines CEO Ed Bastian tells Bloomberg that things should keep improving heading into the holidays. We know the importance of Christmas and Thanksgiving and the holidays. That's our Super Bowl. And that's what we rehearse and plan all year long. We're going to be in really good shape. Delta CEO Ed Bastian spoke to Bloomberg from the floor of the New York Stock Exchange. Get the full conversation on the Bloomberg podcast channel on YouTube. Airlines have canceled almost 10 ,000 flights since restrictions were put in place last week.

3:37Well, Karen, another major story we're following this morning involves emails released by Democrats involving convicted sex offender Jeffrey Epstein. Bloomberg's John Tucker joins us with the very latest. And Nathan, in the newly released emails, Jeffrey Epstein repeatedly discussed Donald Trump with his co-conspirator Ghislaine Maxwell. Epstein writing the, quote, dog that hasn't barked is Trump, adding that one of his victims spent, quote, hours with Trump at Epstein's home. California Democratic Congressman Robert Garcia is the ranking Democrat on the House Oversight Committee, which released the files.

4:10This email from Jeffrey Epstein saying that Donald Trump spent hours with one of the victims or that he knew about the girls. I mean, these are these are things that should should bother us. The White House says that House Democrats selectively leaked emails creating a, quote, fake narrative. White House Press Secretary Caroline Levin. This administration has done more with respect to transparency when it comes to Jeffrey Epstein than any administration ever. In another email, Epstein wrote of Trump, of course he knew about the girls. Epstein was found dead in his jail cell in 2019. Both Republicans and Democrats in Congress have pushed for more information, pitting President Trump against members of his own party.

4:51Representative Thomas Massey of Kentucky, Lauren Boabert of Colorado, Marjorie Taylor Greene of Georgia, and Nancy Mace of South Carolina have said they will join with Democrats to force a vote for the DOJ to release all Epstein files. The emails also reveal that former U.S. Treasury Secretary Larry Summers wrote to Epstein complaining about what he characterized as harsh treatment of an unnamed man who hit on a few women. Summers is a paid contributor to Bloomberg TV. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. We now turn to a Bloomberg exclusive. Ukraine's President Volodymyr Zelensky says his country's survival rests on new funding from allies.

5:32The Ukrainian leader told Bloomberg's Oliver Crook European officials need to overcome their divisions on the use of frozen Russian assets. They understand that we need their support. And if I hope God bless, we will get this decision. But they will not have this decision. Of course, we together will find out. We have to find alternatives. It's a question of our surviving. That's why we need it very much. And I count on partners. And Ukraine's President Zelensky went on to say Russia's Vladimir Putin had waged a deliberate campaign of intimidation against Europe with recent incursions by drones and fighter jets into NATO airspace.

6:09In another geopolitical development this morning, Karen, Chinese President Xi Jinping is joining President Trump in skipping this month's G20 summit in South Africa. Instead, China will send Premier Li Qiang. Xi's decision means the summit will lack the leaders of the world's two largest economies, along with fellow member Russia. Bloomberg News has learned the European Union is set to propose a plan to the U.S., Nathan, that would implement the next phase of the trade agreement the two sides reached this summer. The deal set a 15 percent tariff on most but not all EU goods entering the U.S. Sources say the plan would focus on areas including tariffs and market access, standards, digital trade, technical barriers, and cooperation on steel and aluminum.

6:51Well, back here in the U.S., Karen, futures have moved mostly lower now following another record close for the Dow Jones Industrial Average. Bloomberg Markets reporter Valerie Teitel says the end of the government shutdown has boosted sentiment. This government shutdown coming to an end has been positive for the equity market. Take a look at S &P futures this week. We're essentially on track for the best week in three months. Gold is up 6 % in the last five sessions, and a lot of this can be tied to the fact that the Treasury is going to be resuming their payments and essentially that is releasing liquidity back into the economy that had been built up in treasury cash balances over the last 43 days.

7:28That's Bloomberg's Valerie Teitel. In checking gold this morning, it's up another six-tenths of one percent, trading at$42.3710 per ounce. Shares of Cisco are higher. They're up more than six and a half percent this morning. The largest maker of machines that run computer networks and the internet gave an upbeat sales forecast. It's showing progress in its effort to capture more artificial intelligence spending. Woo Jin-ho covers Cisco for Bloomberg Intelligence. They're playing both the enterprise side as well as on the AI data center side. They provide the high-speed optics, but they also provide the chips to help enable scale across and scale out AI networking.

8:10But they've partnered with NVIDIA. They will be using, ironically, NVIDIA chips in their boxes. So NVIDIA has their entryway to the enterprise where Cisco excels in. And Bloomberg Intelligence's Wu-Jun Ho says Cisco increased its 2026 forecast, exceeding Wall Street estimates. Cisco now expects sales of as much as$61 billion. And Karen, the earnings continue this morning when the world's biggest entertainment company reports ahead of the opening bell. Bloomberg's Tom Busby has more on what to expect from Walt Disney. A big concern for Disney subscriber growth at its various streaming video services like Disney +, ESPN +, and Hulu.

8:47That's after a lot of customers canceled those services when the company briefly suspended Jimmy Kimmel and over the content feed dispute it's having right now with YouTube TV. But with its cash cow theme parks expected to deliver another quarter of blowout profits, Bloomberg consensus calls for revenue of$22.83 billion on adjusted earnings per share of$1.07. Tom Busby, Bloomberg Radio. All right, Tom, thank you. A new line of Cheetos and Doritos won't leave anyone's fingers orange. PepsiCo is introducing naked versions of its popular snacks that strip out artificial dyes as part of its push to boost healthier options.

9:25The offerings, marketed as simply naked, spelled NKD, do not have any added colors. PepsiCo says the snacks are designed to taste the same as the original, but with a novel appearance that the company is betting will interest consumers.

9:43Time 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. California Governor Gavin Newsom's former chief of staff has been indicted in a corruption case. Federal prosecutors say Dana Williamson allegedly conspired to divert about$225 ,000 from a dormant political campaign for an associate's personal use. Williamson is also accused of claiming more than a million dollars in business deductions for private use. The White House is responding after President Trump said that he was open to using the revenue he claims the U.S.

10:21has collected from tariffs to send Americans a$2 ,000 check. There are questions as to who would ultimately receive these checks and whether there is enough tariff money to do it. White House Press Secretary Caroline Levin. We are currently exploring all legal options to get that done. I don't have a timeline for you or any further details, but I can confirm for you that the president made it clear he wants to make it happen. And so his team of economic advisors are looking into it. A federal judge is set to hear arguments over motions brought by former FBI Director James Comey and New York Attorney General Letitia James against the U.S.

10:58attorney for the Eastern District, Lindsey Halligan, who has indicted both of them. They claim that Halligan, President Trump's former personal lawyer, was not properly appointed to her position. A Baltimore police officer has been indicted. Robert Parks is accused of intentionally driving his vehicle at a civilian while on duty. Maryland State Attorney Ivan Bates says Parks now faces charges including attempted murder. If found guilty of all charges, Officer Parks faces a maximum sentence of 65 years of incarceration. There is no maximum penalty for misconduct in office. State Attorney Bates says after Park struck a man in a grassy area, he allegedly tried to hit the man two more times with his car.

11:43Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm 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. NBA stars with big games. Denver's Nikola Jokic, 55 points as the Nuggets beat the Clippers. And in Golden State's win at San Antonio, Steph Curry went for 46. Oklahoma City, defending NBA champs are now 12-1 this year. Thunder up by 32 at halftime and a blowout win over the Lakers. Jets and Patriots play tonight in New England. The Patriots have won seven in a row.

12:20Cy Young Award winners, Paul Skeens of the Pirates, Tarek Skubel of the Tigers. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

12:56Russia needs to be taught to less. Listen, I love you trying ever so hard. To tech journalist Kara Swisher. And the tech industry is running wild. You know, they've gotten what they wanted and they've seen a huge run-up in their stock prices. This will be a place where every weekend you can count on one essential conversation to help make sense of the world. So please join me, listen and subscribe to The Michelle Hussain Show from Bloomberg Weekend, wherever you get your podcasts. You certainly ask interesting questions.

13:54ever at 43 days, but not without a dig at Democrats. The extremists in the other party insisted on creating the longest government shutdown in American history, and they did it purely for political reasons. That was President Trump at an Oval Office signing ceremony heard live on Bloomberg Radio. This morning, we're joined by Tina Fordham, founder of Fordham Global Foresight. Tina, it's great to have you back with us now that the government is back open. What did either side gain by keeping it shut down for so long? Good morning. Good morning. I'd like to give you a really deeply insightful answer to that, but I'm really scratching my head on this.

14:35It feels like a delay that resulted in very little political gain for either side. The political calculus for Democrats in having held out so long and then reopening in exchange for seemingly nothing is a great surprise, but there will be collateral damage from the shutdown. And of course, you know, we're heading straight into the next crisis on the back of this. That crisis, I think you're probably alluding to being the expiration of the health insurance subsidies. Is that what you're getting at? Well, no, but that is, of course, of huge importance to the American people, and it's going to be a major issue for all members of Congress.

15:20I'm thinking about the expiration on the Department of Justice releasing the Epstein files. I think that is a crisis for the White House, to be clear. Yeah, well, let's get into that then. As you mentioned, we had the discharge petition officially signed now. Of course, we've had ahead of that the release of tens of thousands of documents. some of which the Democrats have highlighted showing potentially President Trump's links with Epstein. How do you see this playing out? It's not the sort of topic that as a geopolitical strategist I would normally offer a view on, but I think that it's relevant for three reasons.

16:04First of all, the end of the shutdown means that these files can be released. It's something that the White House has wanted to avoid. The collateral damage from the Epstein case is popping up everywhere. In terms of what it means for the White House agenda, clearly this is going to dominate the news cycle and distract from the White House priorities. priorities and coming on the back of last week's off-year election results, where we started to see evidence of some pushback on the Trump agenda. In addition to what this is doing to challenge the president's approval ratings and support for Republicans as we enter this 12-month period ahead of midterms, what really struck me about the petition was, I think this is the first time that some of the Republican Party faithful in Congress refused to comply with a direct entreaty from the White House.

17:16And that, to me, is significant. Does that point to a broader split then between the president and his own base at a time where we've seen evidence of splits in the Democratic Party as well in terms of how the shutdown was handled? I think that that's where I'm getting to with this. I mean, we really didn't have enough data points, if you like, before last week's elections to get a sense of where the American people were. Of course, we see the approval ratings being at historic lows, but let's always remember that Democrats as a party haven't benefited to date very much from that fact. But if Trump starts to lose the pretty ironclad support that he's had from his party in Congress, and that is coupled with the American people's frustration with the cost of living crisis and these other matters, then that really signals a challenge ahead in the next 12 months for the White House.

18:25Yeah, it's interesting at a time when, you know, coming out of last week's elections where Democrats really seem to focus on affordability. If the focus does turn to Jeffrey Epstein, what could that mean politically? Is there a risk that things could go too far? We have about a minute left. In very complex times, I think there's always the risk that a story like this, which seems easier to understand than the complexities of inflation and trade, for example, just takes over. So it becomes quite a challenge to deal with. There's also a foreign policy angle, which is surprising. The emails released talking about, you know, tell the Russian foreign minister, Sergei Lavrov to talk to me.

19:10I can tell you how to work with Trump. I mean, those kinds of developments could really widen this challenge for the White House at a moment when that's the last thing they want to have happen. 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. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

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