Trump Announces Putin War Summit; NYC Mayoral Candidates Spar at Debate

0:01Bloomberg Audio Studios Podcast Radio News Good morning, I'm Lisa Mateo. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the latest efforts to end the war in Ukraine. President Trump is meeting with Ukrainian President Volodymyr Zelensky at the White House to discuss air defense and energy assistance. Bloomberg's Amy Morris reports from Washington. Ukrainian officials have offered to share expertise in drone technology and production in exchange for U.S. weapons and energy. Zelensky is also expected to discuss the possibility of the U.S. exporting liquefied natural gas to help with Ukraine's energy needs and may offer U.S.

0:45oil companies use of Ukraine's pipeline infrastructure. This comes just a day after President Trump and Russian President Vladimir Putin agreed to meet in Budapest to discuss an end to the war in Ukraine. White House Press Secretary Caroline Leavitt. They also agreed to have a high-level senior staff meeting convened as early as next week. Levitt says President Trump will also talk with Zelensky today about meeting with Putin. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Canadian Prime Minister Mark Carney is weighing in on the Russia-Ukrainian war. In an interview with Bloomberg's Michelle Hussain, Carney says NATO should keep all options open if Russia violates its airspace and does what's necessary to protect the alliance.

1:29Carney says Russia's use of jets and drones over European members of NATO should be viewed as a sign of weakness, not strength. Russia's under pressure. Russia's under pressure. They're trying what they can to shift, but they're under economic pressure. Their military situation, they were making some progress over the course of the summer. That progress has stopped. And you can listen to the full conversation between Michelle Hussain and the Canadian Prime Minister Mark Carney. Just search The Michelle Hussein Show wherever you get your podcasts or on the Bloomberg Podcast channel on YouTube. All right, Karen, the first New York City mayoral debate is in the books.

2:07Bloomberg's John Tucker joins us now in Manhattan with the very latest. John, looks like it was a heated debate. Yeah, and one of the more heated issues, affordability, with Democrat socialist frontrunner Zoran Mamdani behind a rent freeze on rent-controlled apartments. The last Rent Guidelines Board study showed that profits were up 12 % for landlords of those units. And what did they do? They raised the rent. And former governor, now independent candidate Andrew Cuomo, pointed out that's unworkable. Freeze the rent only postpones the rent because then you have to have an increase to cover the costs.

2:41Otherwise, the building is going to go bankrupt. And Republican Curtis Lewa chimed in. we have 25 Empire State buildings full of commercial space that will never be occupied for office space. We should be converting them into affordable apartments. They're in dense areas. The infrastructure can support it. Pressed on how they would handle President Trump, Momdani, who walked to the NBC debate venue at 30 Rockefeller Plaza from Trump Tower, accompanied by a brass band, said he would stand up the president while also being willing to work with him on lowering costs and affordability. Cuomo warned if Mamdani wins, it will be Mayor Trump.

3:20Asliwa also cautioned that taking too contentious a tone with the president would end up hurting the city. A second and final debate scheduled for next week. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. In D.C., the government shutdown enters its third week. Democrats continue to urge the extension of Affordable Care Act tax credits, So Republicans say they're not negotiating until the government's reopened. Senate Majority Leader Republican John Thune says he offered Democrats the opportunity to vote to extend tax credits. Democratic Senate Minority Leader Chuck Schumer says he wants to negotiate behind closed doors.

3:56We're not negotiating in public, plain and simple. And Leader Thune has not come to me with any proposal at this point. And Chuck Schumer and Democrats remain stalled in the Senate. And House Majority Leader Mike Johnson says Republicans are holding firm on their position too. I don't like being mad, Mike. I want to be happy, Mike. I want to be the happy warrior, but I am so upset about this. And Republican House Majority Leader Mike Johnson says his party will debate Obamacare subsidies after the government reopens. Karen, former Trump administration national security advisor John Bolton has been indicted over allegedly mishandling classified documents.

4:33Bolton was charged with 18 counts by a federal grand jury in Maryland. And federal prosecutors secured an arrest warrant. Bloomberg's Kate Sullivan has more from Washington. This indictment comes, you know, just weeks after indictments against Jim Comey and Letitia James. After Comey was indicted, Trump suggested that there were more people his administration were targeting. Clearly part of a retribution campaign that Trump has been signaling for a long time now. Bloomberg's Kate Sullivan says Bolton has been an outspoken critic of Donald Trump. He served for more than a year in the president's first administration.

5:06Let's turn to the markets now, Lisa, where futures are lower once again following yesterday's sell-off on Wall Street. And the drop comes on concerns over the credit health of some banks. Two regional banks, Zions Bank Corp. and Western Alliance Bank Corp., say they were victims of suspected fraud on loans tied to distressed property funds. Emigan Moore from Bloomberg Finance reporter Jenny Serain. In both of these cases, what they're talking about is not something that's mission critical or going to actually impact what these banks have from a capital perspective. But I think it just speaks to this broader investor fear that we've been in such a good credit environment for so long that they're afraid that these banks have gotten a little bit lazy and that they're not doing what they should be doing on the underwriting front, on the risk management front, on the know your customer front.

5:53And so every time you see these kind of, you know, fraud or or other issues or high profile bankruptcies, that's why you see all these investor jitters kind of coming to the fore. And Bloomberg Finance reporter Jenny Sarain says the problems with the regional banks spread to the entire banking industry. Seventy four of the biggest U.S. banks shed more than one hundred billion dollars in market value. Well, shares of Eli Lilly and Novo Nordis, they're falling. This is after President Trump said the price of the blockbuster diabetes drug Ozempic could come down to just$150 a month. The U.S. list price of Ozempic is roughly$1 ,000 for a month's supply.

6:30Trump told reporters that the cost of the drug made by Novo will soon be much lower. Lilly sells similar treatments, including Wagovi and ZipBound.

6:41it is 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 president donald trump is warning hamas that we will have no choice but to go in and kill them if internal bloodshed persists in gaza the grim warning from president trump came after he previously downplayed the internal violence in the territory since the ceasefire and hostage deal between Israel and Hamas went into effect last week. The president hasn't said how he'd follow through on his threat posted on his Truth social platform.

7:17Meanwhile, some aid trucks are now rolling towards the Gaza Strip. UN humanitarian chief Tom Fletcher was on hand to oversee dozens of trucks loaded up with supplies in Egypt to head to the Gaza border. We know how to do this. We know how to shift aid at massive scale. And when the politics align, we can save hundreds of thousands of lives. The UN's Tom Fletcher says the United Nations already has 250 trucks of food ready to go. The same day, a federal grand jury handed down an indictment against former Trump National Security Advisor John Bolton. Another adversary of the president is speaking out on her case.

7:58New York Attorney General Letitia James, who was indicted last week on mortgage fraud charges, says she is totally innocent. It's baseless. It's nothing more than retribution. Retribution for basically doing my job. For doing my job following a two-year investigation in a congressional hearing. It wasn't political. It was based on facts and the application of the evidence. And the judgment was sustained. President Trump has railed against James and called for her arrest after she successfully convicted him, his family, and his business in a civil fraud case in New York. We've lost a member of KISS.

8:39Ace Fraley, the original lead guitarist of the hard rock band, has died after a recent fall in his home in Morristown, New Jersey. Frehley was with Kiss from 1973 to 1982, and then from 1996 to 2002, Ace Frehley was 74. Global 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. Looks like the Dodgers are going back to the World Series. They beat Milwaukee 3-1. They lead the NLCS three games to none. The Brewers have only nine hits in three games.

9:19The ALCS is tied at two. The road team has won every game. Toronto, another one-sided win in Seattle, 8-2. The win to 40-year-old Max Scherzer. The quarterbacks in Cincinnati, both 40 years old. And Joe Flacco really outplayed Aaron Rodgers. The Bengals in an upset, beat the Steelers 33-31. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots. Visit Bloomberg.com slash podcast offer to learn more.

10:04Coast 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. It is 513 on Wall Street. Well, President Donald Trump said he plans to hold a second meeting with Russian President Vladimir Putin in Budapest to end the war with Ukraine. Now, that announcement comes as the president gets ready to meet with Ukrainian President Vladimir Zelensky today. Here to tell us more about this is Bloomberg's Jill Deces. Jill, thanks for joining us once again. So President Trump said he would hold this next meeting with President Putin within two weeks or so.

10:42I mean, it comes after this two hour phone call yesterday between the leaders. That's a long phone call, two hours. Do we know anything about what was discussed? Yes. Good morning, Lisa. We do have some sense of what was ultimately discussed here. I think really what this ultimately comes down to, though, is it seems quite unusual that Trump would kind of preempt his meeting that he's expecting with Zelensky in order to talk with Putin. Obviously, the war in Ukraine is something that really, really frustrates Trump. This is something that one time, you know, only about a year ago or so, he was saying that he would ultimately be able to bring the end to in a day.

11:21What he told reporters in the Oval Office after this meeting was, you know, kind of that he'd equivocated a bit on the possibility of sending some long range Tomahawk missiles as well as the Senate push for pushing sanctions against Russia. I think, you know, really the question here is ultimately when you look at how Trump has really behaved when it comes to this conflict, particularly over the past month or so, he's gotten a lot colder toward Putin and gotten a bit warmer towards Zelensky. I think the question is whether or not, you know, this phone call with Putin indicates that, you know, maybe there's still some things that are up in the air when it comes to resolving this conflict.

11:57Now, when it comes to resolving the conflict, so Trump said he was optimistic that the second meeting could result in a ceasefire. But I mean, didn't their August meeting in Alaska kind of fail to get one? How are things different this time around? Yes, I think. Yes. I mean, look, you're coming off of this Alaska meeting where we really didn't see a whole lot. I mean, if anything, you continue to see Putin and Russia continue to be aggressive. I think one of the big concerns about, you know, first of all, the fact that Trump has had this call with Putin, the fact that he's going into this meeting with Zelensky and then trying to make some kind of a summit with Putin happen within two weeks or so.

12:33That's really, you know, Trump's favored unit of time at this point. So it's still a little bit concerning is when that actually happens here. But it kind of by by talking to Putin and then sort of setting up the summit kind of removes a little bit of the pressure that we had seen Trump start to mount against Putin to bring an end to this conflict. You know, open only almost kind of opens the door, you know, for some kind of continued negotiations here. So I do think that's what's a little bit different this time around. Now, whether that actually results in a ceasefire, I think remains to be seen.

13:05really, really keen to see what happens after the Zelensky visit today, because obviously Zelensky is going into that meeting with, you know, a lot of his own aims. But yeah, I think it's, again, just a very interesting question as to how this ultimately affects the Trump-Putin relationship going into that potential summit here. Yeah. And you touched upon this, Jill. So how did that, you know, that phone call, that two-hour phone call, how does that set the stage for the meeting today between President Trump and Vladimir Zelensky? Well, I think it does raise questions about how much commitment Trump may have to some of the efforts in terms of, you know, the Ukraine seeking help from the U.S.

13:41for its war efforts. So what we're expecting to see Zelensky discuss in this meeting is the possibility of the U.S. exporting liquefied natural gas, helping with Ukraine's energy needs, you know, potentially, you know, the idea of Zelensky discussing with Trump air defense, long range weaponry, urgent energy assistance. So again, the fact that it seemed like Trump equivocated on a little bit of that during his talk with Putin does raise that question of how much, you know, the U.S. might go forward with, you know, any of these concerns that Zelensky has. Again, I think all of this just really kind of, you know, raises a lot of questions about what a ceasefire ultimately looks like and ultimately how much momentum you could see the U.S.

14:21sort of build in a lot of these discussions with Zelensky and then ultimately going forward with Putin. I mean, remember, the other big question in all of this, too, is where the EU comes into this, because Trump has been pretty hard on the idea of the EU needing to sort of step up and be a really, really central player here. So obviously he loves sort of brokering deals, but again, there's a lot of questions. Yeah. And this all, of course, coming on the heels of securing that ceasefire between Israel and Hamas. I mean, does that provide a little bit more confidence that a similar result could happen in Ukraine?

14:52Yeah. I mean, I do think that it does a little bit, right? Obviously still some questions over that ceasefire as well. You know, we've seen, you know, various accusations about how much, you know, you know, some are holding. But, you know, that certainly was a significant breakthrough here. And, you know, it was a win for Trump. So, again, I think that if you're Donald Trump, you're probably looking to build on the momentum of that as well. Certainly gives Trump some confidence going into some of these negotiations. So, you know, we'll see how that tone is reflected, I think, when Trump meets with Zelensky later today.

15:23I'm going to throw another name in here. Hungarian Prime Minister Viktor Orban, he posted his excitement about the meeting on social media between Trump and Putin. Why did they chose choose Budapest? I'm just curious. I mean, yeah, I think that's, you know, also, you know, quite interesting. I think if you're Europe, you might be there's some some European allies of the United States. You might view that particular choice with some skepticism. that idea of, you know, is Putin trying to drive a wedge between the U.S. and Europe as Putin meets with Trump in particular? But, you know, that mostly because Orban has really been the target of a lot of, you know, really fierce criticism from the EU and from NATO allies for maintaining close ties with Russia even after the war broke out.

16:09So I do think it's, you know, quite an interesting choice, obviously something that Putin must favor, you know, quite a bit. So again, I think, you know, there still seems to be a lot of logistics working out. Trump's also got some, you know, other pretty significant international visits to contend with as well. So we'll see how things get on. And in the last minute we have, Jill, what can we expect moving forward? I mean, has the tone changed before we get into these talks? Yeah, I think that, you know, at this point, certainly not a ton of progress being yielded out of Alaska. This idea now that, you know, Trump is obviously preempting this meeting with Zelensky by talking to Putin.

16:45You know, it's it raises some questions about, you know, how much sort of Trump is looking at this in terms of how to work on negotiation, because, again, he had been, you know, souring a bit on Putin in favor of Zelensky actually in Ukraine. And that's really certainly a tonal shift that we saw from earlier this year. Does the pendulum swing at all the other way? I think is one thing. I think, you know, ultimately, though, Trump, he really just wants, you know, another victory in terms of, you know, trying to proclaim that he's brought an end to conflict. So I do think that that's, you know, part of his motivations here in making something happen, whether he's actually successful, I think, you know, certainly remains to be seen.

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18:06Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Lisa Mateo. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.