Midterms Enter Final Stretch, US Pulls Some Saudi Diplomats

0:02 Bloomberg Audio Studios.

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

0:11 And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the race to the midterms. We are now just 12 days from the elections that will determine control of Congress. And final debates were held last night in two of the states with some of the tightest Senate contests. Let's start in Michigan, where Republican Mike Rogers faced Democrat Abdul El-Sayed in a debate sponsored by WXYZ TV.

0:35 The hour-long exchange turned personal at times, with Rogers trying to link El-Sayed to the Muslim Brotherhood.

0:40 If you are going to go to the United States Senate, we need to know, are you for America or are you for these terrorist groups overseas?

0:49 Meanwhile, El-Sayed tried to tie Rogers to President Trump in an exchange on trade policy. For those playing Maga Bingo at home, you just heard like three of the buzzwords.

0:57 I just want to be clear, he literally is on record having said that in the long term, NAFTA would be good for the American worker.

1:02 Sorry, what year was that? That's within the margin of error.

1:14 Nathan, there was also a debate last night in Kansas where Republican Senator Roger Marshall is in a tough re-election fight against Democrat Adam Hamilton. The senator aligned himself with President Trump on the reason for high diesel prices in the debate hosted by Fox for Kansas City.

1:30 The real problem with the cost of diesel in particular is number one is the Ukraine war. And because of that, diesel production has gone down. But beyond that, why are we dependent upon diesel imports? It's because of the Green New Deal policy that my opponent supports.

1:46 Senator Marshall's comments drew a sharp response from Adam Hamilton.

1:50 What you said just now is you're going to sell out our friends in Ukraine. That's not okay.

1:54 And by the way, our red wheat in Kansas came from Ukraine, from people who immigrated here.

1:57 You're going to sell out Ukraine. That's just not okay. It's indecent.

2:01 Polling averages show Roger Marshall and Adam Hamilton virtually tied in a state that has not elected a Democrat to the Senate since 1932.

2:10 Now, along with the Senate races, Karen, there was a debate in the race for Minnesota governor last night hosted by Fox 9 in the Twin Cities and Gray Media. Democratic Senator Amy Klobuchar tried to tie her opponent, Republican State House Speaker Lisa Damuth, to the National Party.

2:24 We need a governor who is not a rubber stamp of Donald Trump, and we need a governor that's going to focus on you and not just do the bidding of a billionaire from Wisconsin that's paid for 80 percent of her ads.

2:35 But Lisa Damuth argued that Amy Klobuchar would be a rubber stamp for the outgoing governor.

2:39 What we haven't heard from Senator Klobuchar is how she has separated herself from Tim Walz. She never has once come up with a policy that she disagrees with Tim Walz on.

2:50 The latest Real Clear Politics average shows Amy Klobuchar leading Lisa Damuth in the polls by more than eight points.

2:56 Along with the debates, Nathan, President Trump is keeping up his midterm rallies. The president returned to South Carolina last night to keep Republican Senator Darlene Graham in the seat left behind by her late brother, Lindsey.

3:08 And after Darlene's brother, I loved her brother.

3:12 That guy was a great guy.

3:13 He was a seriously good politician, by the way, in case anyone's wondering.

3:18 It was good.

3:19 And President Trump's rally comes with Darlene Graham leading her Democratic opponent, Annie Andrews, by less than three points in the latest Real Clear Politics average. The president won South Carolina by roughly 18 points just two years ago.

3:33 And President Trump will continue his swing through red states into next week. Karen, the Republican National Committee says he'll headline a rally for Republican Senator Cindy Hyde-Smith on Monday in Mississippi. a state the president won by more than 22 points in 2024. The party in power typically loses congressional seats in midterm elections, but former Republican House Speaker Kevin McCarthy says he does not think we'll see a Democratic blue wave on November 3rd.

3:57 It won't be like when Obama was in and we won 63 seats or when Clinton was in and for the first time in 40 years, Republican took over.

4:06 They'll get a majority.

4:07 I'm not quite sure how big it is, but they will probably win the majority.

4:11 The real battle is for the Senate.

4:13 Former House Speaker Kevin McCarthy spoke to Bloomberg's Haslinda Amin from the Barclays Asia Forum in Singapore.

4:19 Well, Nathan, as the midterm elections approach, check out Bloomberg's Washington Edition, the newsletter about money, power, and politics in the nation's capital. Our journalists provide reporting and insights through the lens of business, markets, government, and the economy. Sign up now for free at Bloomberg.com slash newsletters.

4:37 Let's turn to the Middle East now, where the U.S.

4:39 Is ordering some diplomats and their families to leave Saudi Arabia because of the threat from Houthi militants. The Iran-backed group has been carrying out more strikes from Yemen. At least four people were killed in attacks on an Aramco oil site and an eastern airport in Saudi Arabia yesterday.

4:56 Russian President Vladimir Putin, Nathan, says Moscow is ready to resume trilateral negotiations with the U.S.

5:03 And Ukraine on a potential peace deal.

5:05 The Kremlin says Putin made the offer during talks with President Trump's envoy, Steve Witkoff. We get more from Bloomberg's national security editor, Ian Marlowe.

5:13 One thing to stress is also that No one really feels like anything has changed in terms of the dynamics. Everyone knows sort of what Russia wants, what Ukraine wants, where the red lines are. The issue is the political will to get there. And I don't think anyone is saying that political will has changed, either in Putin's eyes or in Zelensky's eyes in.

5:38 Terms of compromise.

5:39 Bloomberg's Ian Marlow. Yesterday, the Trump administration praised Putin as a humanitarian for releasing a detained U.S.

5:46 Citizen.

5:47 Starting to markets now, Karen. NASDAQ futures are plunging. They're down nearly 2 percent, but they rose after hours. after better-than-expected earnings from Meta Platforms. And those shares in the pre-market are down nearly 2%. Meta's third-quarter revenue did rise 26%, to more than $ 64 billion.

6:09 That topped estimates.

6:11 CEO Mark Zuckerberg told investors a pricey wager on artificial intelligence is paying off. He touted the success of Meta's new Muse agent during the conference call with analysts.

6:21 We are building out the capacity to serve more than a billion people over the next few years. In the near term, Muse is very compute-intensive to run, but we expect to improve its cost efficiency by more than 10x in the next year, which will enable it to be profitable once the revenue lines are at scale.

6:39 Meta CEO Mark Zuckerberg also boosted the company's capital spending plans for the year.

6:44 After threatening to move Meta's headquarters from California because of a proposed California wealth tax, Nathan Meta has struck an unusual bargain with its billionaire chief executive. The Facebook and Instagram owner is giving him non-voting shares that he can sell to cover a multi-billion dollar tax bill without relinquishing control of Meta. In return, Zuckerberg has committed to staying in California or wherever Meta keeps his headquarters for the next eight years while he remains a full-time leader.

7:12 In Europe, Karen, one of the world's biggest banks is cutting jobs, and it's because of AI.

7:18 Bloomberg's Ewan Potts is in London with the latest.

7:21 Ewan.

7:21 Nathan and Karen, 5,000 jobs are to go at Barclays. The London-based bank says it's cutting about 5% of total headcount as it adopts artificial intelligence across the group. About 60% of the job cuts will be in support functions, including among developers. Barclays says it's focusing on simplifying the organisation and increasing efficiency. The CEO telling investors the bank will employ AI at scale But the AI is the icing on the cake and not the cake. In London, I'm Ewan Potts, Bloomberg Radio.

7:56 Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's John Tucker. John, good morning.

8:03 And good morning, Karen. The annual cost of a family's employer-provided health care plan has now reached an average $ 28, 300 this year. 5% more than last year. These are the latest findings in the annual survey conducted by the health policy nonprofit KFF just out this morning. While employers foot most of the bill, workers still contributing 9% more than last year. A retired police detective has been charged with murder for that shooting on the George Washington Bridge. More from Bloomberg's Courtney Donahoe.

8:36 62-year-old Victor Romero was arrested in what police described as a road rage incident. He's a retired narcotics investigator for the NYPD. The victim is identified as 46-year-old Corin Irvine, a worker from Con Ed who was on his way home after an overtime shift. He died from a gunshot wound while driving on the George Washington Bridge. A bullet hole could be seen in the rear passenger side window of his car. 25 years ago, Romero was shot during an attempted robbery in what police described as a furious close quarters gun battle.

9:08 Courtney Donahoe, Bloomberg Radio.

9:10 New York City schools are facing tough choices due to dwindling enrollment. New York City is the country's largest public school system. The city school's chancellor now says they may have to merge some schools. Pope Leo greeting the faithful in St. Peter's Square yesterday for the first time since his cancer surgery. Final testing shows the pope's cancer was localized, and an evaluation confirmed no further treatment is necessary. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker.

9:41 This is Bloomberg.

9:42 Karen.

9:43 Thanks, John.

9:44 Time now for our Bloomberg Sports Update, and for that, we bring in John Stashower.

9:48 Thanks, Karen. Game three of the WNBA Finals, a blowout win for Atlanta, 97-71 over Golden State. Angel Reese, 21 points, 12 rebounds, and the Dream lead the series 2-1. Among the NBA season openers, Minnesota with a blowout win at Miami. Anthony Edwards scored 45 points for the Timberwolves. Giannis Antetokounmpo scored 35 in his first game with the Heat. The NFL game tonight, Patriots and Bears in Chicago. Both teams come in 4-2. That's your Bloomberg Sports Update.

10:18 Stay with us.

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10:34 This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

10:37 Nearly five years after the full-scale invasion of Ukraine, Russian President Vladimir Putin now says he is willing to resume three-way talks with Ukraine and the U.S., to bring the conflict to an end. This came after talks with White House envoy Steve Witkoff that had the U.S. envoy calling the Russian leader a humanitarian for releasing an American prisoner after four years.

10:59 President Trump was asked if he agrees. I wouldn't say anything one way or the other.

11:04 We're negotiating with Russia to stop.

11:06 The War with Ukraine.

11:08 Well, that was President Trump speaking with reporters at the White House yesterday. Joining us this morning once again is Bloomberg's head of Russia economy and government coverage, Tony Halpin.

11:17 Great to speak with you, Tony.

11:19 Of course, we've been talking about the pressure that Ukraine's president says he's been feeling over the last several days and weeks. Now, with this meeting between Putin and Witkoff ending with this possibility of new talks, What's the setup for what those talks could look like?

11:36 Good morning. Good morning, Nathan.

11:37 Well, yes, as you've noted, President Putin agreed to resume these talks with U.S. and Ukrainian officials. It looks like they'll be at a technical level between lower-level officials discussing things like security matters, questions about where front lines are going to be drawn, issues such as air defenses. But the bigger question about a meeting between the three leaders still has to be addressed. And that's very important. The Ukrainian President Zelensky has made clear that he doesn't see a resolution to this war being possible until he and Putin get to sit down and make final decisions. And that's something that's not on the table. And it wasn't offered by Russia yesterday.

12:19 And there's still a lot of disagreement as well, isn't there, on what the parameters for a ceasefire would look like, especially after that energy ceasefire that President Trump said was happening. But it seems like it kind of fell by the wayside almost from the get-go.

12:35 Yes, that's right.

12:36 Zelensky has said very clearly that he's willing to have a ceasefire on any terms. pretty much immediately. But Putin has made clear that he doesn't want to abide by any ceasefire while negotiations are taking place. He thinks that will give Ukraine and its European allies an opportunity to regroup and rearm. And so he wants to continue the war, even as he says he's now willing to resume negotiations.

12:58 So it doesn't look really very hopeful that there would be a ceasefire while talks take place. And that means that the war goes on.

13:06 What to make of this announcement that the American teacher, Stephen Hubbard, has been released after four years in custody? President Trump had said there wasn't anything that the U.S. gave in return. But, of course, there's also the deal on diesel and the waiver on sanctions.

13:25 What's the takeaway from that?

13:26 Yes, it's clearly very welcome to Mr. Hubbard's family. But in terms of the bigger picture, it seems to be part of some kind of flattery strategy that the US has adopted to coax and encourage Mr. Putin to end the war and come to the table for negotiations. But Ukraine is very clear that it doesn't see appeasement as the best way forward here. Last night, for example, just hours after the talks, Kiev was hit with what Ukraine says were 21 ballistic missiles and more than 200 drones.

13:53 So.

13:55 They think that the only way forward really is to bring Putin to the table through a show of force rather than trying to flatter him there.

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