Trump Talks Taiwan, Shutdown on 60 Minutes; Supreme Court to Hear Tariff Case

0:00Donald Trump is rewriting the Washington rulebook and reshaping the global economy. If you're trying to connect the dots behind the headlines, Bloomberg's Trumponomics podcast is here to help. I'm Stephanie Flanders, head of government and economics at Bloomberg. Every week, I'll bring you a smart, focused conversation with reporters and experts from Washington, Wall Street and beyond. Listen to new episodes every Wednesday and follow Trumponomics wherever you listen. 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.

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1:14All investing is subject to risk, Vanguard Marketing Corporation Distributor. 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 comments from President Donald Trump. He gave a wide-ranging interview to CBS's 60 Minutes, heard here on Bloomberg Radio. They covered his talks with Chinese President Xi Jinping, immigration raids in major U.S. cities, and more. The president has said the status of Taiwan never came up in his discussions with Xi. That prompted this question from correspondent Nora O'Donnell.

1:56Would you order U.S. forces to defend Taiwan? You'll find out if it happens. And he understands the answer to that. Why not say it? This never even came up yesterday as a subject. He never brought it up. People were a little surprised at that. He never brought it up because he understands it. And he understands it very well. And on the subject of immigration raids, the president was asked if ICE tactics against immigrants and protesters have gone too far. No, I think they haven't gone far enough because we've been held back by the judges, by the liberal judges that were put in by Biden and by Obama.

2:30President Trump repeated his claims that many detained immigrants have criminal records, and he says he could invoke the Insurrection Act to send regular military service members into cities rather than National Guard if he wants to. Well, Nathan, President Trump also discussed the government shutdown now on its 34th day and on track to be the longest ever this week. The president tells 60 Minutes he won't be extorted, in his words, by Democrats who are demanding an extension of Affordable Care Act subsidies that expire at the end of the year. Obamacare is terrible. It's bad health care at far too high a price.

3:05We should fix that. We should fix it. And we can fix it with the Democrats. All they have to do is let the country open and we'll fix it. But Democratic Senator Mark Warner says the time for the president to negotiate is now. Everyone as of Saturday saw health care rates skyrocket. This is an immediate crisis, too. We can deal with this jointly, but it's going to require the active intervention of the president. Senator Warner appeared on CBS's Face the Nation, heard Sundays on Bloomberg Radio. 60 Minutes airs every Sunday evening at 8 p.m. on Bloomberg 1130 in New York, Bloomberg 92.9 in Boston, and Bloomberg 99.1 in Washington, D.C.

3:47Well, Karen, President Trump also says he will skip this week's Supreme Court hearing on the legality of his worldwide tariff regime. President spoke on Air Force One as he returned to Washington from Mar-a-Lago last night. I think it's one of the biggest decisions in the history of the Supreme Court. Other countries used tariffs against us if we weren't able to openly and freely use tariffs against them. I'll give you an example. China, that was going to be a disaster for the world. and I was able to settle it very quickly, very easily because I was able to use tariffs. The Supreme Court is scheduled here.

4:23The president's appeal of a lower court ruling that many of his Liberation Day tariffs exceeded emergency power to regulate imports on Wednesday. Well, reactions still pouring into the U.S.-China trade deal. Nathan, a regulatory advisor to Beijing, says the summit was a breakthrough in bilateral relationships where China was treated as an equal partner of the U.S. Some other developments, the U.S. is expected to suspend port fees for a year on China-linked vessels starting next week. And China will effectively suspend the implementation of new export controls on rare earth metals and investigations into American companies in the semiconductor supply chain.

5:00Still, Treasury Secretary Scott Bessent has warned the U.S. must still be cautious. I think and I hope after the agreement and the goodwill between President Xi and President Trump in Korea that we can depend on them to be more reliable partners and the rest of the world can depend on them. But we can't take that chance. We don't want to decouple with China, but we're going to have to de-risk. And Treasury Secretary Scott Besson made the comments on Fox News Sunday. Turning to markets now, Karen. Stocks begin a new trading month on a winning streak. The S &P 500's gained for six straight months, while the NASDAQ 100's done even better.

5:38It's up seven straight months. Wall Street's looking at another busy week for earnings with consumer companies in focus, and we get a preview from Bloomberg's Charlie Pellett. More than half of S &P 500 companies have reported quarterly results, and Uber and McDonald's earnings will likely underscore deteriorating consumer sentiment in the U.S. Emily Rowland is co-chief investment strategist at Manulife Investment Management. You know, certainly earnings have been a huge positive. This earnings season's been spectacular, 10.5 % earnings growth, 82 % beat rate. Also reporting this week, tech names Palantir, Qualcomm, and DoorDash, along with Warner Brothers Discovery, Pfizer, and Yum!

6:22Brands. In New York, Charlie Pellett, Bloomberg Radio. Thanks, Charlie. One big earnings report over the weekend to get you caught up on. Warren Buffett's Berkshire Hathaway reported a 34 % surge in operating earnings. The conglomerate's cash pile soared to almost$382 billion. Oil is moving a touch lower this morning, Karen, after OPEC Plus announced plans to pause output increases at the start of next year. The group and its allies say they'll raise production by about 137 ,000 barrels a day in December before taking a break from January to March. The move comes as the market contends with growing concerns about oversupply that have driven Brent prices down by around 10 percent over the past three months.

7:05This morning, Brent is down about two tenths of one percent, trading below$65 a barrel. West Texas Intermediate is down two tenths of one percent. It's below$61. Staying with Energy here, Nathan, BP has agreed to divest stakes in U.S. shale assets for$1.5 billion as it seeks to shore up its balance sheet and win back investor confidence. BP has pledged to divest$20 billion of assets by the end of 2027.

7:34Time 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 John Tucker. John, good morning. Good morning, Karen. 735 ,000 New Yorkers have already cast their ballots in early voting. And that has broken the record for a mayoral election in New York. The early voting ended yesterday with no lack of enthusiasm. Well, I really wanted to vote early because I wanted my kid to be able to vote with me and to see the voting process. And we talked about the issues. Affordability has been the key issue in this race to begin the city's 111th mayor.

8:08Democratic nominee Zoran Bamdani is the frontrunner. Day 34, the government shut down and delays it getting worse at local airports. And Bloomberg's Monica Ricks has that story. The Federal Aviation Administration issued a temporary ground stop for some flights to Newark Liberty International Airport Sunday due to staffing issues. But it's not just New Jersey. Thousands of flights were delayed over the weekend over shortages nationwide. And U.S. Transportation Secretary Sean Duffy warns it's only going to get worse the longer the government shutdown continues. There is a level of risk that gets injected into the system when we have a controller that's doing two jobs instead of one.

8:46More air traffic controllers and TSA agents have been calling out sick rather than working without pay. Monica Ricks, Bloomberg Radio. Israel announced the remains of three hostages had been handed over from Gaza and would be examined by forensic experts. This is a fragile month will ceasefire holds. A Hamas statement earlier said the remains were found in a tunnel in southern Gaza. Police say one of two men arrested in connection with a mass stabbing attack that spread fear and panic on a London-bound train Saturday has been released without charge, and that one person, a heroic member of the railway staff, remains in a life-threatening condition.

9:22The only remaining suspect is a 32-year-old British man who remains in custody on suspicion of attempted murder. Global News 24 hours a day and whatever you want it with Bloomberg News Now. I'm John Tucker, and this is Bloomberg Karen. Thanks, John. Time now for our Bloomberg Sports Update, and for that, we bring in John Stashauer. Thanks, Karen. Southern Night Football was in Washington. Seattle got four touchdown passes from Sam Darnold. The Seahawks beat the Commanders 38-14. An AFC showdown saw Buffalo beat Kansas City 28-21. Denver's sixth straight win. Four of them have been comebacks in the fourth quarter.

9:57The Broncos won 18-15 at Houston. The Colts lost for just the second time. They turned it over six times in a 27-20 loss in Pittsburgh. And in Jacksonville's overtime win in Las Vegas, Cam Little kicked an NFL record 68-yard field goal. 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.

10:34But 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. These 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. Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made.

11:12And 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. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break. So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens.

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12:10Coast 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. And let's turn now to a conversation with President Trump. He sat down with CBS's 60 Minutes, heard Sundays on Bloomberg Radio for an extended conversation on the ongoing government shutdown. And here's Trump speaking with CBS's Nora O'Donnell. We are now approaching the longest shutdown in American history. Democrats' fault. Under your presidency, we're talking about more than a million federal workers who are not getting a paycheck, including our air traffic controllers.

12:49You see there's traffic snarls out at the airports now. This weekend, food aid for more than 42 million Americans is set to expire. What are you doing as president to end the shutdown? All we're doing is we keep voting. I mean, the Republicans are voting almost unanimously to end it. And the Democrats keep voting against ending it. You know, they've never had this. This has happened like 18 times before. The Democrats always voted for an extension, always saying, give us an extension. We'll work it out. They've lost their way. They've become crazed lunatics. And all they have to do, Nora, is say, let's vote.

13:28Senate Democrats say they will vote to reopen the government if Republicans agree to extend subsidies for over 20 million Americans who use Obamacare for their health insurance. Obamacare is terrible. It's bad health care at far too high a price. We should fix that. We should fix it. And we can fix it with the Democrats. All they have to do is let the country open and we'll fix it. They have to let the country open and I'll sit down with the Democrats and we'll fix it. But they have to let the country. And you know what they have to do? All they have to do is raise five hands. We don't need all of them.

14:04But so you're saying your plan is to tell the Democrats to vote to end the shutdown. Correct. Very simple. And that you will put forward a health care plan? No, we will work on fixing the bad health care that we have right now. We have terrible health care at too expensive for the people, not for the government, for the people. But, Mr. President, with all due respect, you've been talking about fixing the health care insurance. And you can't do it because of the Democrats. But since 2015, you've said you've been talking about it for a long time. We almost did it. We were one vote short. We would have had great health care.

14:35That was in 2017 when Senate Republicans failed by one vote to partially repeal Obamacare. We can make it much less expensive for people and give them much better health care. Where is that plan? I'd be willing to work with the Democrats on it. The problem is they want to give money to prisoners, to drug dealers, to all these millions of people that were allowed to come in with an open border from Biden. And nobody can do that. One Republican would ever do that. My understanding is if those health care subsidies are not extended, premiums will double for many of the people that are on it. And I was looking into it.

15:14Three quarters of these people will see their health care premiums double. Live in states where you won in the last election. I mean, even here in Florida has the highest number of residents on Obamacare in the country. And I'm saying we can fix it, Nora. You have helped end these government shutdowns in the past. I did. And you did it by bringing. I'm very good at it. But I'm not going to do it by extortion. I'm not going to do it by being extorted by the Democrats who have lost their way. There's something wrong with these people. So then what happens on November 15th when the troops don't get a paycheck?

15:47Schumer is a basket case, and he has nothing to lose. He's become, I just left Japan, he's become a kamikaze pilot. Sounds like it's not going to get solved, the shutdown. It's going to get solved, yeah. Oh, it's going to get solved. How? We'll get it solved. Eventually, they're going to have to vote. You're saying the Democrats will capitulate? I think they have to. And if they don't vote, that's their problem. Now, I happen to agree to something else. I think we should do the nuclear option. This is a totally different nuclear, by the way. It's called ending the filibuster. But to do that, he'd need Senate Majority Leader John Thune to change Senate rules.

16:23Did you see John Thune said today they're not going to do that? No, John doesn't. Well, John and a few others. But you know what? The Republicans have to get tougher. If we end the filibuster, we can do exactly what we want. We're not going to lose power. The theory is, oh, then we'll do it. But then when they get into power someday, they'll do it. That's true. But you know what? We're here right now. No, I like John Thune. I think he's terrific. But I disagree with him on this point. He said today he wasn't going to do it. Well, that's too bad. President Trump there speaking to CBS's Nora O'Donnell on 60 Minutes.

16:56You can catch 60 minutes every Sunday at 8 p.m. Eastern on Bloomberg 1130 in New York, Bloomberg 92.9 in Boston, and Bloomberg 99.1 in Washington, D.C. Nathan. All right, Karen, thank you. Let's turn back to the nation's capital now and get more reaction to what we just heard from President Trump. Joining us now is Terry Haynes, the founder of Pangaea Policy. Terry, it's great to speak with you this morning. Now we are into day 34 of the government shutdown. Did we hear anything new from President Trump in that 60 Minutes conversation as to how this ends. Good morning. Good morning, Nathan. I don't think we heard anything new, but I think what we heard was more transparent and expressed more plainly than the kind of the fog of negotiation, the fog of war that we've heard before.

17:48What this is, is Trump saying essentially, I mean, And, of course, reiterating the Trump and Republican position that they're not going to negotiate the health care extension over overholding the government, as they would put it, hostage. But what Trump is saying very plainly is, look, you can you can actually have a victory. And I'm interested in having you have one. You end the government shutdown and I'll engage in negotiations with you to actually to make things better, faster, cheaper. And that's a very plain message to Democrats and something that I think they'll probably consider as a way of declaring victory on this, because all they need to do really to end the shutdown is take Republican offers, whether it be from the president here very plainly yesterday or from congressional Democrats earlier, to negotiate on the shutdown.

18:48How do you see that playing out, though, Terry? Because it's been more than a month now, and the Democrats have held pretty firm on their position that they want to see an extension of those expiring subsidies for affordable health care before they'll agree to vote to reopen the government. Well, I see it a couple of ways. One is that I've been saying this since before the shutdown started. I see it a couple of ways. One is that this is not a substantive position over health care. But until about two weeks before the shutdown, it was not clear what grounds the Democrats might use in order to shut the government down.

19:30And they eventually picked health care because they thought it was a good issue for them. but number one. Number two, it has much more political having to do with showing the base defiance, showing the donors defiance, that sort of thing. But secondly, I've also said since before the shutdown started that they've set this up to not be about substance, to be technical. And what mean by that is that this is not about the Democrats' position. It is about how negotiations happen, not whether negotiations happen. Democrats continue to say that Republicans refuse to negotiate with them on this. The president's interview last night is the clear evidence yet that Republicans' position is that they would like to negotiate this, but they have to do it after the government reopens, not as part of that process.

20:31The issue of SNAP benefits, they were supposed to expire over the weekend. There was a judge's decision that indicates that that might not be the case, that food assistance will continue. Could that extend the shutdown? uh the you mean the legal uh wrangle over this the uh the fact that there could possibly be a further extension of uh of uh food food assistance that understood okay yeah uh yeah and uh you know i don't think so the uh you know the judges will uh will run back and forth on whether uh snap extensions are required not required uh the biggest issue uh really though is a political issue, and how much more Democrats want to take here.

21:21Democrats have a situation here where, in terms of popularity, political people always talk about polls, so let me mention them. I don't defer to them, but let me mention them. You get a situation where Democrats' favorability is much lower than Republicans, and both parties are much lower than Trump's. So, you know, Trump is, put another way, Trump is a more popular politician than either political party right now, but Democrats are really in a trough. Democrats haven't been really positively affected by the shutdown. So then you get into a situation where practical problems, whether it be SNAP, whether it be the air traffic problem, whether it be the economic data impacting Federal Reserve interest rate action, all these things.

22:12all these things start to accrue, and they accrue in ways that become Democrats, disproportionately Democrats' fault because they're the ones that are not reopening the government. I think that that plays a role. I also think the elections tomorrow play a role because what you're going to have is you're going to have a very muddled takeaway from Democrats where no one's in charge, where Mondani is now the new bright, shiny face of the party, And you have the folks who haven't been paying attention to this nationally looking more like the national leaders, the Schumers, the Jeffreys, the Kathy Hochul and the like, are looking like they're part of this leftward surge that just happened in New York City.

23:04And that's a bad look for Democrats as well. I think for a lot of those reasons, Democrats are going to want to, frankly, take yes for an answer and look for negotiations with the president that they've gotten fairly serious assurances on that the president will and the White House will follow through on. 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.

23:58Plus, 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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