Bloomberg Daybreak: Europe Edition US Shutdown Begins As Stocks Drop & Gold Rallies On Funding Standoff
Oct 1, 2025
Derek Wolbank, Senior U.S. government editor at Bloomberg, provides sharp insights into the political chaos surrounding the U.S. government shutdown. He delves into how the impasse over healthcare funding led to a standstill, potentially disrupting vital services including visas and passport processing. Wolbank also assesses the fallout for federal workers and the political repercussions for both parties. Amidst this, market reactions see gold prices skyrocket, as uncertainty looms over delayed economic data.
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Shutdown Triggered By Political Deadlock
- The US entered a shutdown because Democrats blocked a Republican stopgap that lacked their demanded policy changes.
- The deadlock threatens to paralyze operations and suspend paychecks for federal workers.
Key Economic Data Will Be Disrupted
- The shutdown will delay major economic releases including the Labor Department jobs report and some inflation and GDP updates.
- That loss of timely data could leave the Fed and investors 'flying blind' during a sensitive policy period.
Trump Links Shutdown To Immigration
- President Trump suggested the administration could use the shutdown to conduct mass layoffs of federal workers.
- He linked the funding standoff to immigration while speaking next to Air Force One.