US Shutdown Nears End as Senate Passes Deal; Trump Teases India Trade Pact

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1:07Bloomberg 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 U.S. history could end as soon as tomorrow. The Senate has passed a temporary funding measure that would reopen most of the government through January 30th and the rest through the end of September. It's a sigh of relief for Senate Majority Leader John Thune. This has been a very long road, quite literally the longest shutdown in history. I am very, very happy to be able to say that we are coming to the end. Majority Leader John Thune spoke on the Senate floor after the bill passed 60 to 40.

1:51Now it heads to the House, where lawmakers are expected to take it up tomorrow. The measure does not include the health insurance subsidy extension that Democrats had demanded for more than a month. Bloomberg's John Herskovitz reports that's led to a split within the party. The concession that Republicans gave was allowing a vote on the extension of these subsidies in December. Whether these subsidies pass or not is another matter. For a lot of members of the Democratic Party, especially on the progressive wing, they see this as a betrayal. This was the root cause of their confrontation with the Republicans, and they just don't like the way that it has been settled.

2:30Bloomberg's John Herskovitz says Republicans are floating alternate plans for the expiring subsidies. President Trump has proposed sending direct payments to Affordable Care Act recipients. Other Republicans are suggesting an income cap for the subsidies. Well, Nathan, the shutdown is certainly leaving a mark on the airline industry. A fourth day of flight restrictions saw airlines scrap more than 2 ,300 flights yesterday. And after going unpaid for more than a month, some air traffic controllers have been calling out of work. In a post on Truth Social, President Trump threatened to withhold pay for those who do not show up.

3:03The president promised a$10 ,000 bonus for workers who did not take time off. Nick Daniels is president of the Air Traffic Controllers Union. So I'll take anything that recognizes these hardworking men and women, but we'll work with the administration on any issues that are out there. Air traffic controllers have continued to show up during this shutdown. They've endured the longest shutdown in American history. And every single day, they absolutely not only deserve their pay, they deserve to be recognized. Nick Daniels with the National Association of Air Traffic Controllers says his members have worked without pay since the shutdown began on October 1st.

3:39And Karen, the freezing weather across the country is adding to the flight disruptions. Bloomberg meteorologist Craig Allen is tracking a storm that's affecting now the majority of the country. It's the coldest air of the season so far, and it has dipped down from border to border across the eastern half of the United States. And as we've been mentioning, the core of this unseasonably cold outbreak, it took a nosedive south first, and now it has invaded the east this morning. Sub-freezing temperatures are covering about three dozen states, numerous record lows being set all the way down through Texas over to Louisiana, Mississippi, Alabama, even south of Orlando in Florida.

4:16And Lake Effect snow has been a big problem. Treacherous travel downwind of all the Great Lakes. It has shifted more to the east, so the heaviest accumulations now are occurring from Erie to Buffalo to Syracuse, and that includes interstates 80, 90, 79, and 86. Bloomberg meteorologist Craig Gallen says this taste of winter will be short-lived. Temperatures are expected to begin to return to average by midweek. Well, Nathan, President Trump is hinting at a thaw in trade relations with India. The president says the U.S. is pretty close to a deal with India, and at some point tariff rates will go down.

4:52Well, right now the tariffs are very high on India because of the Russian oil, and they've stopped doing the Russian oil. It's been reduced very substantially. Yeah, we're going to be bringing the tariffs down. President Trump spoke at the Oval Office swearing in of his new ambassador to India, Sergio Gore. The U.S. raised tariffs on many Indian goods to 50 percent earlier this year, in part to pressure New Delhi to stop buying Russian oil. Indian refiners have begun scaling back purchases from Moscow after President Trump sanctioned Russia's two largest producers last month. Meanwhile, Karen, the president is downplaying criticism of the potential creation of a 50-year mortgage product.

5:30He tells Fox News it would help more Americans afford monthly payments on homes. It's not even a big deal. I mean, you know, you go from 40 to 50 years and what it means is you pay something less. From 30, some people had a 40 and now they have a 50. All it means is you pay less per month. You pay it over a longer period of time. President Trump spoke with Fox News' Laura Ingram. Now, critics say extending the length of a mortgage to 50 years from the standard 30 would mean buyers build equity much more slowly and pay far more interest over the lifetime of a loan. And staying with the markets, Nathan, futures are lower after yesterday's rally on Wall Street and shares of NVIDIA are down more than one percent.

6:09Japan's SoftBank said it has sold its entire stake in the chipmaker. It's pocketing$5.8 billion ahead of a rash of planned investments by founder Masayoshi Son to build his own sphere of influence supporting artificial intelligence. SoftBank also announced a four-for-one stock split. Paramount Skydance reported financial results for the first time, Karen, since a new investor group took over the media company in August. It reported revenue below, analysts forecast. Paramount says it plans an additional 1 ,600-person workforce reduction and a goal to achieve at least$3 billion in cost savings. Chris Palmieri covers Paramount Skydance for Bloomberg.

6:46Clearly, they're upping their cost cutting is an interesting time because, as everyone has reported, they're interested in buying Warner Brothers. And one of the concerns is, you know, how many more jobs the industry would lose if they bought it. Bloomberg's Chris Palmieri says the parent of CBS and the Paramount Film and TV studios forecast$30 billion in revenue next year. That's slightly more than analyst estimates, and the shares are up more than 4 percent this morning. On the flip side, Nathan, shares of CoreWeave are down eight and a half percent. The data center operator lowering its annual revenue forecast due to a delay fulfilling a customer contract.

7:20Corweave shares have more than doubled this year. And Karen, it is the end of an era for one of the business's most watched icons. 95-year-old Warren Buffett says he intends to step up the pace of his donations while he's still alive and will be going quiet. That means he will no longer write Berkshire Hathaway's annual report or speak at its annual shareholder meeting. Here's Bloomberg News senior editor, Eric Weiner. He also was sort of a voice of reason on Wall Street. He would be one who would point out that things had gotten a little bit far, you know, out over their skis. He would be the one to say that it was time to step back in.

7:55They called him the Oracle and there was a good reason for that. We're not going to see something like that again for a very long time, if ever. Bloomberg's Eric Weiner says Warren Buffett is donating more than$1.3 billion to four family foundations. He plans to step down as CEO of Berkshire Hathaway at the end of this year.

8:17Time 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 Barr, welcome back. Thank you very much, Karen. The Supreme Court has rejected a call to overturn its landmark decision that legalized same-sex marriage nationwide. The justices turned away an appeal from former Kentucky court clerk Kim Davis, who refused to issue marriage licenses to same-sex couples after the Supreme Court's 2015 ruling. The decision brought a sense of relief to many same-sex couples and LGBTQ advocates. Chris Hartman is with the Kentucky Fairness Campaign.

8:54It's over. Kim Davis's case was not going to be the one that challenged marriage equality. The Supreme Court agrees. Can we all agree to never talk about Kim Davis again? Davis had been trying to get the justices to overturn a lower court order that she paid$360 ,000 in damages and attorney's fees. The Food and Drug Administration says it will remove a longstanding warning from hormone-based drugs used to treat menopause symptoms in women. The change is a break from FDA policy in which the drugs carried the agency's most severe warning label after two studies in the early 2000s claimed that there were major risks associated with HRT, including breast cancer.

9:42Gynecologist Dr. Jessica Shepard, chief medical officer of the telehealth company HERS, says according to federal officials, almost a third of women did not use HRT due to the warning. This moment has been coming for decades. And when we think of how women have been suffering for years since that WHI study, we really have reached a pinnacle of allowing women's health to pervade. Dr. Shepard says women should talk to their provider about hormone therapy. Today, the U.S. honors its service members on this Veterans Day. Greg Darden is a Wisconsin veteran. I'm 71. The WW2 vets are dying every day.

10:21Korea is next and there's just our Vietnam vets. and we're disappearing. We're disappearing very quickly. This morning, President Trump is scheduled to lay a wreath at the tomb of the unknown soldier at Arlington National Cemetery. Global news, 24 hours a day and whenever you want it with the 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. Mother Night Football in Green Bay. Packers and Eagles scoreless for 36 minutes. Philadelphia kicked a field goal, got a Jalen Hurts touchdown pass to Devontae Smith in the fourth quarter and beat Green Bay 10-7.

10:57The Eagles are 7-2. The Giants are 2-8. They fired coach Brian Dayball. He was in his fourth season, an overall record of 20 wins and 40 losses. Mike Kafka, the assistant, takes over as the interim head coach. Rookies of the year, A's first baseman Nick Kurtz won unanimously in the American League. Braves catcher Drake Baldwin in the NL. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. I'm Barry Ritholtz, inviting you to join me for the Masters in Business podcast. Every week, we bring you fascinating conversations with the people who shape markets, investing, and business.

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12:27Coast 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 and it is now six full weeks into the federal government shutdown. Now it may be just one day away from coming to an end. We are going to reopen government. We're going to ensure that federal employees, whether they were furloughed or laid off or forced to work without pay, will now receive compensation. That was Republican Senator Susan Collins after the Senate voted 60 to 40 on a bill to reopen most of the government for another two and a half months.

13:10The House is expected to vote on it tomorrow. And for more, we are joined by Bloomberg Breaking News editor Alexander Pearson. Alex, it's great to speak with you this morning. I think it's worth talking about what got us to this point and what should we expect now that this new stopgap is headed to the House. Good morning. Thank you for having me. That's right. So yesterday, the Senate passed a stopgap bill that will, as you say, fund most of the government until January 30th. And then also includes three full budget bills that will fund the rest of the government actually for the next year. So it's a lot of progress considering how long it took to get here.

13:50The House today is expected to vote on the measure. and it will have to pass that bill for it to eventually land on President Trump's desk to be signed into law so that the government can reopen. But the bill does not include what the Democrats had been holding out for for more than a month, this solution to expiring health insurance subsidies. Where is that issue left now? Yeah, that's right. So the Democrats initially were reticent to pass any kind of stopgap measure without extending these healthcare subsidies. And a group of centrist moderate Democrats yesterday, they broke with most of the party to actually pass this bill in the Senate.

14:32That caused a lot of consternation with progressive Democrats, including the leadership. And so now what happens with that is that they got essentially an exchange for voting for this bill. the Republicans in the Senate agreed to hold a vote on extending those subsidies in mid-December. But the thing is, is that it's not assured if that will actually pass, which is exactly what, of course, most Democrats wanted to ensure by including it in any kind of stopgap measure. And we've heard from House Speaker Mike Johnson that he wouldn't even promise a vote on the subsidy issue. Could this potentially tee up a campaign issue for Democrats heading into next year's midterms?

15:15Absolutely. If there's no extension, then a lot of millions of Americans actually who get their health care through the Affordable Care Act could see their premiums skyrocket. And so the Democrats definitely will make this into an electoral issue going into the midterms next year if there is no deal that they see as sufficient as of the end of this year. So these subsidies are actually supposed to expire by the end of the year. So if there's no agreement, then this could really become a hot potato issue in the elections next year. And in the meantime, Alex, of course, we've seen thousands of flight cancellations, uncertainty around federal food aid as well.

15:54In our last minute, where does this leave things politically for Republicans and Democrats? Yeah, I mean, in terms of the polling, it's shown that actually the Republicans have been blamed a little bit more by, you know, the average voter for the shutdown than Democrats. That said, the Democrats now are a little bit lost because they didn't get essentially what they wanted from the shutdown fight, even though they scored some pretty good electoral wins last week in New York, New Jersey and Virginia. And so for them, they're going to be looking at this as maybe a lost opportunity and we'll try to make it an electoral issue next year if they can't get the subsidies extended.

16:32For the Republicans, they now have to decide what they want to do in terms of these subsidies and how they want to manage that issue to ensure that it doesn't become a liability going into the midterms next year.

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