Midterm Debates Heat Up; Russia-Ukraine Energy Ceasefire in Limbo

0:02 Bloomberg Audio Studios.

0:04 Podcasts. Radio.

0:06 News.

0:10 Good morning. I'm Nathan Hager.

0:11 And I'm Karen Moscow. Here are the stories we're following today.

0:14 Karen, we begin with a slew of key debates with the midterm elections now less than three weeks away. In New York, Democratic Governor Kathy Hochul faced off against Republican Bruce Blakeman.

0:26 And Bloomberg's John Tucker joins us with the recap. John, good morning.

0:29 Good morning, Nathan. Affordability. Donald Trump and ICE dominated the face-off. ICE raids in New York led to this exchange.

0:36 That's not how you conduct yourself. ICE is out of control. It's out of control in Nassau County.

0:41 It never would have happened but for your sanctuary policy. You actually invite people into our state, give them free everything, and you don't care whether they're.

0:51 Criminals or not.

0:52 Blakeman also accused Hochul of failing to act sooner in the probe of sexual assault allegations at Cornell University.

0:59 And as a trustee and as governor, you didn't call for an independent investigation when you found out that the district attorney was dropping the case.

1:07 Thank you.

1:07 Shame on you.

1:08 I did.

1:10 That's pretty pathetic to blame me for what happened in a fraternity.

1:13 My gosh.

1:14 Polls have consistently shown Hochul leading Blakeman in a state where Democrats outnumber Republicans two to one. But the race has narrowed in recent months with an October Marist poll finding Hochul leading Blakeman 53 to 42 percent. It's been nearly a quarter century since a Republican last won statewide office in New York. I'm John Tucker, Bloomberg Radio.

1:35 All right, John, thank you. There were a string of Senate debates last night from New England to the Deep South, and we begin in Massachusetts where incumbent Democrat Ed Markey squared off with Republican John Deaton on WBZ-TV. Markey aimed to tie his opponent to President Trump and his policies while Deaton tried to distance himself.

1:55 I'm John Deaton, and I'm the one that is debating you, not Donald Trump. He's trying to pretend that he's an independent and that he's a Republican at the same time.

2:05 That's an oxymoron.

2:07 John Deaton attacked the 80-year-old Markey over his age and nearly half-century serving in Congress, while Markey continued to tie Deaton to the national GOP platform.

2:16 If they fix it, they can't campaign on it. They can't raise money on it. People watching tonight, they're suffering as well. It's at their kitchen table. It's Trump at the pump.

2:27 Massachusetts Democrat Ed Markey leads Republican John Deaton by 23 points in the latest Real Clear Politics polling average. In Maine, Republican Senator Susan Collins and Democrat Troy Jackson squared off in their third of four debates before next month's election.

2:42 The face-off hosted by WABI and WAGM turned heated at times. Jackson went after Collins when she said she was concerned about fraud in Medicare and Medicaid.

2:51 I'm shocked that you're talking about fraud because there's only one person up here that's been accused of that by the FBI.

2:58 Troy Jackson pointed to a Politico report that the FBI looked into Collins' contacts with a donor seeking federal contracts.

3:05 Collins responded later in the debate.

3:07 I just cannot continue to ignore these attacks on my integrity.

3:14 The candidates also sparred over the Iran war, the high cost of heating oil and health care cuts, and President Trump's signature tax cut law. The latest Real Clear Politics polling average shows Jackson leading Collins by only about one point.

3:27 Well, Nathan, there was also a debate last night in Georgia where Democratic Senator John Ossoff is defending his seat against Republican Congressman Mike Collins. Collins came out swinging against Ossoff in the Atlanta Press Club debate.

3:39 Behind his highly skilled, scripted online clips is a coward, a coward who lies about his accomplishments.

3:47 And Ossoff was asked in his first question whether he's thinking of running for president in 2028 and whether he'd serve his full six-year term if reelected.

3:57 Yes, I will. I have zero interest in running for president. I'm not running for president. I'm running for re-election to the Senate.

4:04 And polls in Georgia show Ossoff heavily favored to win re-election. And on the prediction market, polymarket, he's tied with California Governor Gavin Newsom as the top Democratic pick for president in the next election.

4:17 Karen, there was also an important debate in Iowa last night, the final debate between Republican Ashley Hinson and Democrat Josh Turek for retiring Republican Joni Ernst's Senate seat. The two candidates sparred over high diesel prices, though Hinson broke with President Trump on how to lower them.

4:32 We need to lower gas prices in this country. We need to lower diesel prices. But I don't think we need to be making a deal with Russia to do it. Josh Turek said he agrees, but then he turned the tables.

4:41 We are in this situation because of this unnecessary war in Iran that Ashley Hinson voted in favor of continuing seven times.

4:48 The candidates also sparred over Turek's voting record and Hinson's personal finances. In the debate hosted by WHO TV, polls show both candidates neck and neck in a state that hasn't elected a Democrat to the Senate since 2008.

5:01 Well, in other news this morning, Nathan, the Vatican says Pope Leo XIV has lung cancer and had the lower lobe of his right lung removed. The 71-year-old American pontiff was in the operating room for about three hours with the surgery lasting 90 minutes. The Vatican stated the surgery was successful with no complications. The Vatican has canceled all of Leo's audiences through next Tuesday.

5:22 Thank you, Karen.

5:23 We have new developments this morning in the Middle East. Saudi Aramco's headquarters have been hit by a missile attack. The kingdom's energy ministry says the office complex was targeted by Houthi militants in Yemen. We get more from Bloomberg Middle East breaking news editor Patrick Sykes.

5:39 This was Aramco's HQ in Daharan in the east of Saudi Arabia. We know that this attack caused a fire, but the company said that there were no casualties. I think mainly this is more of a symbolic strike, you know, short of the human risk that for now seems to have been obvious. avoided. It's not the kind of thing that's going to impact oil production or exports in the way that some previous attacks on infrastructure like pipelines have, but it is a symbolic attack on what's the best-known company in Saudi Arabia and the one that underpins that key industry for the region.

6:16 Bloomberg's Patrick Sykes says Brent crude has surged more than 70% this year as the Iran war roils energy markets.

6:23 Well, Nathan, there's also new developments in the war in Ukraine. Russia says it attacked Ukrainian electricity plants in a massive strike overnight. That further undermines President Trump's claim of an energy truce between the two warring countries. We get more from Russia economy and government team leader Tony Halpin.

6:42 Russia appears to have attacked overnight fairly intensively, targeting things like thermal heating plants. in Kiev and around Kiev region, also communications infrastructure. Essentially, there are parts of Kiev now without power and some areas of the city without water as well. It all looks pretty grim from a Kiev perspective.

7:03 One advisor to President Zelensky is also saying that Starlink services slowed down overnight. which made it difficult for some operations to take place.

7:13 Back here in the U.S., a federal judge says journalists with CNN, MSNOW, and Politico can continue to have access to the White House while their lawsuit against the Trump administration proceeds.

7:23 U.S.

7:23 District Judge Timothy J.

7:25 Kelly again sided with the outlets in their bid to overturn a ban on their reporters' access to the White House grounds that President Trump implemented last month.

7:33 Well, in Europe, Nathan, shares of ASML are up about 2%. The Dutch semiconductor equipment maker can't keep up with demand. ASML says its current supply plans mean it won't be able to fully meet demand in 2027 and 2028, and it's investigating ways to increase capacity for 2028.

7:51 And Karen, an employee at OpenAI has been arrested and charged with using a hidden recording device in one of the company's San Francisco offices. OpenAI says it has no indications the employee inappropriately accessed or exfiltrated model weights, source code, or customer data that the investigation is still ongoing. This incident is poised to heighten concerns about security at top tech companies at a moment when nations are competing aggressively to develop more powerful AI systems.

8:20 And it is time now 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. Michael, good morning.

8:27 Good morning, Karen. The investigation continues into the death of 42-year-old Hassan Kareem after he fell from a roller coaster at a Six Flags amusement park in Georgia on Monday. The restraint on Kareem became unlatched, according to witnesses, and he was ejected out of his seat and tumbled all the way down. According to investigators, his body hit multiple parts of the ride before he made it all the way to the ground, injuring others. Amusement ride safety expert Brian Avery.

8:56 Was there a breach of the standards? Was there a misstep or cue with respect to training? Were the attendants in their correct position? Were they intervening to facilitate things continuing safely with respect to restrictions possibly of guests' use, whether it's height or weight or something along those lines?

9:15 Six Flags temporarily closed nine similar coasters across North America after the incident. Hurricane Simon and the remnants of Tropical Storm Rachel have led to six deaths along Mexico's Pacific coast. Simon was a Category 1 storm before strengthening last night and was nearly a major hurricane again. President Trump wants a change in the investigation at Cornell over an alleged gang rape. Bloomberg's Matt Piper is in New York.

9:40 President Trump is calling on New York's governor to remove State Attorney General Letitia James from the investigation. He wrote on social media that James has zero credibility and says her involvement in the inquiry would greatly add to the anguish that everybody feels in viewing how the case is being handled. Trump has long clashed with James and Governor Kathy Hochul. James brought a major civil fraud suit against him and his family business in 2022.

10:04 In New York, Matt Piper, Bloomberg Radio.

10:06 Mayor Zoran Mamdani and the New York City Council Speaker reached a deal on legislation to ban horse-drawn carriages.

10:13 In Central Park.

10:14 The legislation is set for a vote on October 22nd. If passed, the ban would take effect June 1st, 2028. The deal includes a framework to help horse carriage drivers find new jobs and compensation after the ban takes effect and stronger protections for the horses. Global News 24 hours a day and whenever you want it with Bloomberg News Now.

10:35 I'm Michael Barr and this is Bloomberg, Eric.

10:38 Thanks, Michael.

10:39 Time now for our Bloomberg Sports Update. And for that, we bring in John Staschauer.

10:44 Thanks, Karen.

10:44 Game 2 of the American League Championship Series won by Tampa Bay. 3-1 over Cleveland to tie the series at 1. The Rays scored all three unearned in the fourth inning. That was a costly Jose Ramirez error. Game 3 of the NLCS tonight in L.A. Milwaukee leads the Dodgers 2-0. Shohei Otani will be in the Dodger lineup. He's only 3-for-20 in the postseason. The NFL has suspended Rams tackle Alaric Jackson. Two games he punched Buffalo's Bradley Chubb. after the game the other night. That's your Bloomberg Sports Update.

11:12 Stay with us.

11:13 More from Bloomberg Daybreak coming up after this.

11:20 Coast 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.

11:30 Good morning. I'm Nathan Hager.

11:32 The energy ceasefire that President Donald Trump announced between Russia and Ukraine in recent days appears to be in serious doubt this morning. Russia is claiming a massive strike on Ukraine's electricity plants hours after the president argued the truce had already been broken.

11:46 Ukraine hit many sites the day before.

11:49 Russia has not.

11:50 Broken the ceasefire.

11:53 I'll let you know about that later, but they're.

11:56 Hitting each other.

11:56 That was President Trump speaking to reporters at the White House yesterday and joining us this morning from Dubai is the head of Bloomberg's Russia economy and government team, Tony Halpin.

12:05 Tony, thanks for being with us.

12:07 What do we know about these latest attacks that Russia is claiming this morning?

12:11 Good morning.

12:11 Morning, yes.

12:12 Well, the Defense Ministry in Moscow said it struck six thermal plants and a substation which supply electricity to the Ukrainian capital, Kiev, and its surroundings, as well as the northern Kharkiv region. And Ukraine's president is making clear that these are the very infrastructure elements that he says are covered by President Trump's truce on energy strikes. Russia hasn't elaborated on why it targeted these plants so intensively. But as you said, it declared it as a massive strike and seems very content with the results.

12:46 Are we at a point where we can argue or either side is arguing over who started it first? Is there a question about whether this energy truce that President Trump announced over the weekend was even in effect in the first place?

13:01 Well, Ukraine insists it's actually still abiding by the truce. It hasn't targeted refineries yet. In recent days, it has been striking data centers which are not related to energy infrastructure. And in fact, Russia also hit a data center in Ukraine overnight. But it insists that Russia is not abiding by this truce and therefore it's in a very difficult position.

13:23 There's some question as well about intelligence.

13:26 The Ukrainian president in one of the earlier attacks had said that there was no warning from Western allies about the massive strike that he had reported just a couple of days ago. What do we know about whether intelligence is getting to Ukraine right now?

13:43 Yes, he made a.

13:43 Second claim in respect of delays in intelligence. He said during a discussion with Canada's Prime Minister Mark Carney that And it's a particularly important issue for Ukraine, of course. They're critically dependent on intelligence sharing from Washington. And any delay in receiving intelligence about Russian ballistic missile launches delays the time they have to issue air alerts and get civilians into shelter and avoid civilian casualties. So it's become a particularly potent issue. Ukrainian officials say, in fact, that there's no delay in intelligence sharing, that they're still receiving it.

14:17 But clearly on the ground, there is some difference of opinion as to how effective this is at the moment.

14:22 Are the Ukrainians getting any help from Western allies other than the U.S.? I understand that the Ukrainian president has been traveling to London as well to meet with the U.K.

14:32 Prime minister. Yes, that's right.

14:34 He's meeting UK Prime Minister Andy Burnham in London today. And one of the critical issues there is bolstering air defences for Ukraine so they can defend themselves better against practically daily strikes from Russia now using missiles and drones. And formally beyond that, they're trying to discuss the consequences of President Trump's deal with Russian President Putin on diesel, which has left Europeans rather blindsided by the relaxation of sanctions on this issue.

15:00 And when it comes to where things go from here, Tony, in our last minute, what does the strategy seem to look like now with Russia now claiming a tax on Ukrainian energy infrastructure at a time when As we say, President Trump had said that he'd like at least to see a truce on that front.

15:19 Yes, President Putin has always rejected any sort of ceasefire. He says that he's willing to talk and continue talks about a solution on his terms to this war, but he's not willing to stop fighting while those talks go on. Currently, there's no real diplomacy taking place. The two sides are exchanging strikes practically daily, and there's no sign that this war is coming to an end.

15:42 This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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