Bloomberg Daybreak: US Edition

Wendy Sherman, former U.S. Deputy Secretary of State and senior fellow at Harvard's Belfer Center, offers her diplomatic insights on the recent agreement for Hamas to release Israeli hostages. She emphasizes the challenges of rebuilding Gaza and the urgent need for international aid while discussing skepticism about Hamas's ability to deliver on commitments. Sherman also highlights the importance of detailed negotiations and warns of the role Iran's proxies may play in regional stability, urging a cautious but hopeful approach to peace.

Drew Redding, a U.S. home building analyst at Bloomberg Intelligence, dives into the effects of lumber and cabinet tariffs on construction costs, estimating a $10,000 increase per home. He discusses the strain on smaller builders and the long road to self-sufficiency in lumber production. The conversation also touches on the implications of Pfizer's recent $70 billion deal on drug pricing and the complexities of the Nobel Prize process, including past controversies and the representation issues in science prizes.

Amid a government shutdown, the Senate prepares for a critical vote that could impact the economy. President Trump's job cuts create uncertainty for investors. On the trade front, a potential breakthrough in US-China talks looms, with China halting soybean imports as leverage. Boeing’s 777X faces delays leading to massive accounting charges, causing concerns for its future. Plus, exciting developments in AI infrastructure acquisitions could reshape the market landscape.

Amid the looming government shutdown, the White House is readying to lay off federal workers, escalating tensions in political negotiations. The Federal Reserve faces challenges assessing economic data due to the shutdown, particularly concerning services inflation. Meanwhile, OpenAI's staggering $500 billion valuation surges past SpaceX as employees sell shares, marking a significant milestone for the AI startup. In geopolitics, Trump's upcoming meeting with Xi highlights trade implications for U.S. farmers. Stay tuned for market updates and big tech shifts!

The US government is facing its first shutdown in almost seven years, impacting hundreds of thousands of federal workers. With losses estimated at $400 million a day, critical economic reports are on hold, leaving traders anxious about monetary policy. Meanwhile, the White House's unexpected withdrawal of EJ Antoni's nomination to lead the Bureau of Labor Statistics adds to concerns over essential data leadership. The podcast delves into the implications of these events and the political dynamics at play.

Tensions rise as Vice President Vance points fingers at Democrats over a looming U.S. government shutdown. Federal agencies are bracing for action, with plans to furlough over 400,000 nonessential employees. Meanwhile, Trump and Netanyahu unveil a 20-point peace plan for Gaza, aiming to exclude Hamas from future governance. The prospects for peace remain uncertain as key regional leaders lend their support, but acceptance by Hamas is crucial. Economic impacts of the potential shutdown are also analyzed, highlighting its broader implications.

As a government shutdown looms, President Trump meets with top congressional leaders to negotiate a stopgap funding bill. Tensions rise as Senate Democrats push for health care subsidies while Republicans insist it's the Democrats' turn to act. Meanwhile, Israeli Prime Minister Netanyahu visits the U.S. to discuss an ambitious 21-point proposal to resolve the Israel-Hamas conflict. In New York, Mayor Eric Adams unexpectedly withdraws from his reelection campaign, shaking up the political landscape ahead of the November election.

John Liu, Bloomberg's Greater China correspondent based in Beijing, discusses the mixed results of China's pro-growth policies and the challenges ahead. He highlights persistent overcapacity in sectors like EVs and solar, alongside rising deflationary pressures. Liu anticipates continued contraction in PMI data due to weak business sentiment amid Beijing's anti-involution campaign. He also addresses the impact of collapsing property wealth on consumer demand and rising unemployment, while optimism grows around domestic AI chip development and energy resources.

Former FBI Director James Comey faces legal challenges after being charged with lying to Congress, stirring debates on political influence in the judiciary. President Trump responds with new tariffs on pharmaceuticals and heavy trucks, including a steep 100% duty on patented drugs. Meanwhile, TikTok's valuation drops to $14 billion, raising eyebrows about its worth compared to traditional industries. The hosts delve into these critical political and economic shifts, highlighting their impacts on the current landscape.

The White House has issued a warning about potential mass firings as agencies prepare for a possible government shutdown. President Trump is set to meet Pakistan’s Prime Minister, signaling improved U.S.-Pakistan relations. Meanwhile, Jimmy Kimmel's return to late-night TV attracted a record 6.26 million viewers, far exceeding his usual numbers. Discussions also touch on Fed policy expectations and intriguing developments from Intel and HSBC in tech and finance.