Bloomberg Daybreak: US Edition

President Trump confirms CIA operations are underway in Venezuela to combat drug flow into the US. A federal judge halts planned layoffs by the Trump administration, citing legality concerns. Meanwhile, Treasury Secretary suggests a potential extension of the pause on tariffs if China reconsiders strict export controls on rare earth elements. With a looming November deadline, the trade dynamics between the US and China continue to evolve, setting the stage for a significant leaders' meeting.

Tensions rise as Trump threatens to halt cooking oil trade with China, claiming retaliation for their soybean purchases. Meanwhile, the White House plans to unveil a list of federal program cuts, increasing pressure on Democrats amid a 15-day government shutdown. Fed Chair Powell hints at stopping balance sheet reductions to maintain market liquidity, while labor market conditions are worsening. Additional discussions cover military pay issues, controversial support to Argentina, and a potential tipping point for tariffs in US-China relations.

Tensions are rising between the US and China as Beijing signals openness to talks while implementing export curbs on rare earths. President Trump's recent Middle East tour aims for peace, but the fragile ceasefire poses challenges. Meanwhile, the US government shutdown persists, prompting renewed calls from House Democrats. In the world of finance, bank earnings reports show mixed results affecting the market outlook, and there's discussion on how tariffs influence inflation rates.

Hamas has freed several Israeli hostages in a US-mediated ceasefire, with more expected to follow. The agreement includes significant prisoner exchanges and increased humanitarian aid to Gaza. Meanwhile, tensions with China simmer as the US explores a potential trade deal, despite recent export control issues. Trump’s arrival in Israel to promote the ceasefire highlights the complicated dynamics in the region. Discussions touch on the immediate impact of these events on military funding and broader economic consequences amidst a federal shutdown.

Ken Griffin, Founder and CEO of Citadel, shares insights on gold's surge as a safe haven amid dollar weakness. He discusses the implications of U.S. fiscal policy and urges for reforms to address soaring deficits. Herman Chan, a regional bank analyst at Bloomberg Intelligence, previews upcoming bank earnings and potential consolidation trends within the banking sector. Together, they navigate the complex dynamics affecting finance and energy, touching on the challenges banks face and the growing relevance of gold in today’s economy.

Israel’s cabinet has approved a significant deal for Hamas to release hostages in exchange for prisoners, aiming to end a prolonged conflict. Meanwhile, the U.S. government shutdown is in its tenth day, with Congress trading blame as citizens face service disruptions. New York Attorney General Letitia James faces federal bank fraud charges, adding to the political tension. The podcast also touches on international reactions to these developments, including a spotlight on China’s scrutiny of Qualcomm and future political changes in Japan.

Israel and Hamas have reached a historic deal for releasing hostages, marking a potential end to a devastating war. Discussions were facilitated by several countries, including the US and Egypt. In European politics, French President Macron is set to appoint a new prime minister, potentially stabilizing the chaotic political landscape. Meanwhile, China has imposed strict export controls on rare earths, heightening trade tensions ahead of key discussions with the US. The hosts also touch on market trends and notable developments in entertainment and sports.

Amid the ongoing US government shutdown, a controversial proposal could deny back pay to furloughed workers, igniting legal battles. Meanwhile, gold prices soar past $4,000 an ounce, driven by economic uncertainties. In France, the outgoing Prime Minister expresses hope for a government deal while navigating pension disputes. Additionally, international teams are heading to Egypt for critical negotiations aimed at resolving the two-year conflict in Gaza, aiming to stabilize the region amid rising tensions.

As the government shutdown looms closer to a week, President Trump hints at a willingness to negotiate with Democrats on health care subsidies, shaking up the negotiations. Meanwhile, a federal judge deliberates on a request to delay the deployment of National Guard troops to Chicago amid rising tensions over immigration policies. In international news, mediated talks between Israel and Hamas spark some hope for a resolution in the long-standing conflict, affecting stability in the region.

Stephen Carroll, Bloomberg Daybreak Europe anchor, dives deep into the political turmoil in France following Prime Minister Sébastien Lecornu's unexpected resignation. He explains Macron's challenges in forming a stable government as opposition parties cry out for change. The discussion then shifts to Trump's efforts to mediate a resolution to the Israel-Hamas conflict, highlighting potential hostage exchanges and the stakes involved. Carroll's insights on market reactions and political dynamics keep the conversation engaging and informative.