Lula's Comeback in Brazil; Trump Threatens to "Finish it Off" in Iran

0:02 Bloomberg Audio Studios.

0:04 Podcasts.

0:05 Radio.

0:06 News.

0:10 Good morning.

0:11 I'm Karen Moscow.

0:12 And I'm Alexis Christophorus. Here are the stories we're following today.

0:17 Alexis, we begin with new developments in the Middle East. Iran is reportedly hosting top security and defense officials from Saudi Arabia, Pakistan, and Turkey for regional security talks. This comes after President Trump said it's getting to be decision time on whether he will make a deal with Tehran or resume attacks. Trump spoke at a campaign rally in Michigan.

0:38 We are ensuring that Iran will never have, ever have, ever, ever, ever a nuclear weapon. And you'll see that ending quite soon, one way or the other.

0:48 During that same rally, the president intensified his attacks on Senate candidate Abdul El-Sayed and his Muslim faith, repeatedly portraying the Michigan-born Democrat as sympathetic to Islamic extremism. Trump also said it was important Republicans win the midterms next week.

1:05 If the Democrats win, you will have a 1929-style economic depression, because just like all of their other policies are so insane, their financial policies are worse. If the Republicans win, you'll each have $ 5, 000 in your pocket, an economic success for our country like we have never seen before.

1:25 Meanwhile, California Democratic Senator Adam Schiff was optimistic about his party's chances next week.

1:31 I think if the election were held today, we would win both houses. And the question is, can our candidates hold against this onslaught of big, dark money pockets like Elon Musk, the MAGA fund and all the rest?

1:45 We're being outspent. Can we hold?

1:47 So far, we're holding. California Senator Adam Schiff made the comments on NBC's Meet the Press. You can catch the program Sunday afternoons on Bloomberg Radio.

1:55 Well, Alexis, Democrats are preparing to launch congressional investigations into the Trump administration's handling of files related to Jeffrey Epstein if they regain power after the midterms.

2:06 And Bloomberg's Monica Ricks reports.

2:08 Representative Robert Garcia, who's the top Democrat on the House Oversight Committee, says the Epstein investigation will be one of the party's top priorities if they win back control of Congress at midterms. as well as President Trump's ties to Epstein and the government's handling of the files. But any probe would have a ripple effect well beyond Washington, with Wall Street and corporate America already bracing for a wave of Democratic investigations. Garcia says major banks that had ties to Epstein's financial dealings are among those who could be called to testify.

2:38 Monica Ricks, Bloomberg Radio. Thanks, Monica. And for full midterm election coverage, stay with Bloomberg. On Tuesday, November 3rd, we bring you America Decides. Bloomberg's David Gurra starts us off at 6 p.m. Wall Street time. He's followed up by a special edition of Bloomberg Balance of Power with Joe Matthew and Kayleigh Lyons. They're going to take you through the numbers and give you the context that matters. Live coverage starting at 6 p.m. Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.

3:05 Well, Alexis, we turn now to politics overseas. In Brazil, President Luiz Inácio Lula da Silva came from behind to win the country's runoff election.

3:15 The 80-year-old garnered.

3:16 51.8% of the vote, defeating Flavio Bolsonaro.

3:20 Who received just over 48%.

3:21 Fabiola De Mora is a Bloomberg Latin America editor.

3:27 Brazil's election system is very sound and it's fraud proof. It's all electronic. But what happened, it was a campaign full of emotion. So Flávio came in first in the first round of voting and Lula's turnaround was very much based on social media campaigns. The 80-year-old politician didn't have a mobile phone until a few weeks ago. And all his supporters were mobilized through WhatsApp and other kinds of apps.

4:06 And this was a big chunk of Lula's recovery.

4:11 Bloomberg Latin America editor Fabiola De Mora is reporting Bolsonaro is refusing to concede. Analysts are expecting a turbulent day in the Brazilian equity markets. Investors have been banking on a Bolsonaro win to fix the fiscal accounts. Now they're bracing for extended political uncertainty.

4:28 And Karen, there's also an election in Israel tomorrow. Prime Minister Benjamin Netanyahu is running against opposition leader Gadi Ezenkot. We caught up with former Israeli Prime Minister Ayyub Omer.

4:39 Growing understanding amongst many of the Israeli electorates is that the present government of Israel was not responsible, was not careful, was not restrained, and at the end of the day did not provide Israel with the kind of security that the Israelis deserve. They were entirely reckless, irresponsible, arrogant.

5:07 Former Israeli Prime Minister Ehud Olmert made those comments on Bloomberg this weekend. You can catch the program Saturday and Sunday afternoon, 7 a.m. to 10 a.m. Wall Street time.

5:16 In Europe, Alexis, France avoided a repeat of large-scale violence over the weekend, but the anger driving the protest shows little sign of abating. About 110,000 people took part in a mostly peaceful demonstration in Paris on Saturday, with another 300,000 around the country, according to the Interior Ministry. Bloomberg's managing editor for European Economy and Government, Ben Sills, says the lack of violence does not mean France's problems are over.

5:44 The protest movement seems to have settled into kind of like, I think they've reached cruising velocity. They've got a whole series of additional demonstrations planned for the weekends ahead. And the relative calm of this past weekend's demonstrations was only due to an absolutely massive police and military presence.

6:01 On the streets.

6:02 Bloomberg's Ben Sills says the government deployed some 70,000 security officials, including elite anti-terror forces, to keep the peace.

6:10 And Karen, we now turn to the latest on trade. And top White House economic advisor Kevin Hassett said U.S.-Canada trade negotiations have, quote, picked up two days after the Trump administration modified Canadian tariffs to benefit some main businesses. That's following lobbying by Senator Susan Collins. Hassett spoke with Fox News.

6:29 The Canadian election that just happened, including Alberta separating, made it so that it was essentially impossible to negotiate with the Canadians. But the negotiations have picked up. They're gathering steam. Secretary Lutnick has been talking to his Canadian counterparts all week. I think they're very close to finally having a deal on that.

6:47 Kevin Hassett there, President Trump's economic advisor. The White House has said it is exempting some Canadian products from tariffs and adding duties to others. It's an effort to boost Susan Collins' campaign to keep her U.S. Senate seat in Maine.

7:01 Alexis, let's turn to the markets now, where investors await a slew of key tech earnings and a rate decision by the Federal Reserve. And Bloomberg's John Tucker joins us with the latest. John, good morning.

7:11 Good morning, Karen.

7:12 Spending on the AI buildup that comes under scrutiny this week as investors pour over earnings from Alphabet, Microsoft, and Amazon. Margie Patel with All Spring Global Investments sounding pretty bullish today.

7:24 So far, we've had about a quarter of the S & P report. And once again, they surprised on the upside. We think that as we see more companies report good numbers, that will crystallize. And I think that will cause a very, very strong finish for the rest of the year.

7:38 The Federal Reserve delivers a policy decision Wednesday as officials grapple with stubborn inflation, higher energy costs and elevated global bond yields. But traders have less conviction that the Fed's going to raise rates this week The onstand at less than 15%. I'm John Tucker, Bloomberg Radio.

7:56 All right.

7:56 Thanks, John. Elon Musk says SpaceX has closed a $ 40 billion debt deal to pay for the NVIDIA chips it needs to fuel its artificial intelligence ambitions. Sources, however, tell Bloomberg that talks over pricing were still ongoing. Musk's comments came on the heels of a tumultuous week for AI companies and debt markets as concern mounted over the industry's rapid spending and limited profits so far to show for it.

8:23 Time for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Good morning, Michael.

8:30 Good morning, Alexis. New York City police are searching for a man responsible for a knife point sexual assault in Central Park over the weekend. The attack happening around 8.30 p.m. where officers say they found the 39-year-old victim near East 66th Street and Fifth Avenue inside the park. News of the attack surprised this woman on her way to take part in a volunteer event.

8:53 I'm a little worried now. I feel like Upper East Side, Upper West Side, you see people really early mornings, really late nights, not worried.

9:02 According to the NYPD, the victim was taken to a hospital in stable condition. Officials at Six Flags over Georgia announced over the weekend they will be adding seatbelts to the roller coaster Goliath after a rider was killed when he was thrown from the ride earlier this month. The amusement park says it's engaged independent engineers and specialists to review safety protocols across all Six Flags parks across the country.

9:28 The president and CEO of Six Flags says we are committed to carefully evaluating their findings and taking appropriate action to further strengthen our standards and culture of safety. According to the state, the ride passed its last state inspection back in March with no violations reported. A United Airlines flight bound for New Jersey was forced to return to Las Vegas Saturday night after flight attendants reportedly noted a passenger on board texting that he planned on hijacking the aircraft.

9:59 According to ATC audio of the incident, the flight was met by law enforcement at the gate and delayed from taking off again until Sunday morning after the crew timed out.

10:09 And unit 1681, can you let me know the souls on board and fuel remaining, please?

10:14 Yeah, 157 souls on board, and we have about five hours and 40 minutes of fuel.

10:20 Which is 24,800 pounds.

10:22 Thank you very much.

10:24 Law enforcement has not confirmed if the passenger was arrested after disembarkment or how serious the threat to the flight was. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg.

10:40 Thanks, Michael.

10:41 Time now for our Bloomberg Sports Update. And for that, we bring in John Stashower. Thanks, Karen.

10:46 There's only one NFL team still undefeated. It's the Minnesota Vikings. They're 6-0 after beating the Colts 16-10. The Vikings have the best defense in the NFL. In their last five wins, they've allowed only four touchdowns. The 49ers were undefeated and then lost in Atlanta 29-20 as Michael Penix threw three touchdown passes. And the Niners had four turnovers. The Kansas City Chiefs were undefeated, and then they lost last night in Seattle 20-3. The Knicks, the defending NBA champions, are 0-3.

11:13 They lost at home to Orlando. That's your Bloomberg Sports Update.

11:18 Stay with us. More from Bloomberg Daybreak coming up after this.

11:24 Coast to coast on Bloomberg Radio, nationwide on Sirius XM.

11:29 And around the world on Bloomberg.com and the Bloomberg Business app.

11:33 This is Bloomberg Daybreak.

11:35 And President Trump is saying that decision time is nearing when it comes to Iran as he threatens to resume strikes unless a deal is reached. The president was asked by reporters yesterday if that means there'll be an immediate resumption in attacks.

11:48 Would I tell you that? The answer is no. There will not be a strike today.

11:53 And the president has suggested military action could resume after the U.S. midterm elections. For more on this story, we're joined by Bloomberg News managing editor Jill Desis. Jill, good morning. Thanks for being here. Well, we're hearing that more tough talk from the president, but we're also hearing about talks in Iran today involving Saudi Arabia, Pakistan, and Turkey. So it sounds like everyone's taking these talks about a renewed strike seriously.

12:17 Yes.

12:17 Good morning, Karen. I think, look, putting aside what the president of the United States was saying, which, you know, I mean, obviously there's been a lot of back and forth between the U.S. and Iran over, you know, negotiations versus renewed strikes for quite a while now. I think when we're kind of zeroing in on what the security meeting in the Middle East is looking like, it does indicate that there's this new level of significance. So this would bring together the Saudis, along with Pakistan, Turkish spymaster Erdogan, all together with the Iranian Supreme National Security Council to discuss those security talks. It's actually the first time that members of this alliance, the Mecca Defense Alliance, have been

12:54 in Tehran since it was established in August. I think that does give you that indication that There's certainly this idea that there could be these renewed strikes after the U.S.

13:03 Midterms.

13:03 It does give a little credence to the idea that that's being taken very seriously. And again, I mean, you don't even have to just listen to Donald Trump himself. You're looking at the way that the U.S. has brought in another aircraft carrier into the Persian Gulf. You've seen a lot of this talk sort of spin up over the last several weeks here. So it does seem like that does remain to be a possible reality once those midterms happen.

13:25 Yeah.

13:25 Does a meeting like the one we are seeing today renew hopes for diplomacy as well?

13:31 I mean, that's a very difficult question to answer here because remember that there's a lot of things that the U.S. and Iran are very far apart on when it comes to negotiations. There's a reason why peace talks have broken down so many times over the last nine months. You've got disagreements over nuclear capabilities, control over the Strait of Hormuz.

13:50 So a lot of daylight between these two sides when it comes to actually negotiating reaching a conclusion to this conflict now, whether or not that's something that, you know, they're willing to come to the table, you know, either ahead of the U.S. midterms or afterward, we'll have to see.

14:04 Where do the Houthis fit into all this? Because we're still seeing these strikes against Saudi Arabia. So will that play into any of this at all? Does it affect what we might see after the midterms or with even having to do with these talks going on?

14:19 Right.

14:19 Well, I mean, look, the fact that you're continuing to see these escalating strikes by the Houthis. Now, remember, this is– Iranian officials have said they're an independent group making their own decisions. But Riyadh, Saudi Arabia argues that they're trained, weaponized, supported by Iran. So a lot of the fighting that we've seen over the last several weeks that's been escalated by those Houthis raises a lot of questions about security.

14:40 security in the Middle East, certainly with Saudi Arabia, where we've seen a pretty intensive bombing campaign for quite a while now. It does raise that question about, you know, if the Houthis are going to continue their strikes on Saudi Arabia, does that risk this widening conflict within the Middle East? Where does Saudi Arabia kind of come into this?

14:58 And ultimately, you know, is there a point where the U.S. is actually going to step in and escalate things further? Again, really does raise those questions about, you know, whether there's actually a resolution in sight here.

15:10 This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

15:16 Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen.

15:23 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.

15:38 Plus, listen coast to coast on the Bloomberg Business app, now with Apple CarPlay and Android Auto interfaces.

15:44 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.

15:55 I'm Karen Moscow. And I'm Alexis Christophorus. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak.