Trump Promises No Iran Attack Before Midterms; Hurricane Isaias Approaches US

0:02 Bloomberg Audio Studios, podcasts, radio, 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.

0:16 Alexis, the drop in oil comes on news that President Trump said the U.S. would not be attacking Iran before November's midterm elections. He cited, quote, productive discussions with the Islamic Republic. Begin more from Bloomberg's Will Kennedy.

0:32 I think we should read it like anything that Trump says. We should take it seriously, but be skeptical because he's likely to say something different in a day or two or a few hours. It will bring some relief to the market because obviously we'd had that report. I think it was maybe in the Atlantic earlier in the week that he was considering escalation. before the midterm elections. And this, if it pans out, does bring some potential breathing space.

0:58 And Bloomberg's Will Kennedy says President Trump's decision to lay off on new strikes comes despite Iran escalating attacks on tankers in the Strait of Hormuz.

1:07 To politics at home now, and a trio of debates were held overnight as the midterm elections are less than 25 days away. We start in the closely watched Michigan Senate race. The two candidates there clashed on a grand rapid stage. Democratic nominee Abdul Al-Sayed went after his Republican opponent Mike Rogers over high fuel costs.

1:27 There is one thing that is actually causing this. It's the war in Iran, a war that has been cheerlead by my opponents since the beginning, called it a win, win, win. I don't know about you, but when I go to the gas tank, I don't feel like I'm winning. I don't feel like our country is winning.

1:40 Republican Mike Rogers hit back at Democrat El-Sayed's economic policies.

1:44 His policies will raise the cost of every gallon of gasoline, number one, raise your utility rates, cause you $ 20, 000 for a Medicare for All plan that takes away private insurance from individuals.

1:59 The debate comes as a recent Fox News survey shows a close race as 50% of likely voters backed Al-Sayed while 49% supported Rogers, which is within the margin of error.

2:10 In Maine, Alexis, discussions about gas prices and the war in Iran raised notable tension in the second debate between longtime incumbent Senator Susan Collins and Democratic challenger Troy Jackson. On WMTW-TV, Jackson attacking Collins over her past support for the war in Iran claimed that Collins was profiting from the conflict.

2:31 She's the chair of appropriations. I mean, money has to come through there for these wars. She still could do something. She could use her leverage to stop this war. But instead, they're making money. I mean, Senator Collins and her husband are making money more off of this war.

2:45 Senator Collins, who is seeking a sixth term in her seat, demanded an apology.

2:49 That is absolutely outrageous, and you owe me an apology.

2:56 That is absolutely outrageous.

3:00 To say that my husband and I are making money off the war in Iran is absolutely outrageous.

3:11 The stakes were high for both candidates to avoid onstage gaffes and snag a strong eclipse that could move the needle of the close race. Decision desk HQ's polling averages show Democrat Jackson, who became the party's pick after their initial nominee, withdrew this summer, leading the five-term Republican incumbent by just over a point in the blue-leaning pine tree state.

3:33 And in Georgia, Karen, Senator John Ossoff, the Democratic incumbent, and Representative Mike Collins, the Republican challenger, faced off in the first debate in the battle for a Senate seat. Collins held his own against the more polished Ossoff, but the attacks of the night came from the incumbent.

3:49 Mike Collins is a bigot and it's disqualifying for a candidate for the US Senate.

3:54 Congressman, 30 seconds. Yeah, imagine being a US Senator and out there recruiting.

3:59 Endorsing and supporting these people that want to see Israel wiped off the map.

4:03 Audio there courtesy of WSB-TV. The race is the only Senate race in the country where a Democratic incumbent has a seat in a state that President Trump won in 2024. A real clear politics average of Georgia voters show that Ossoff had an eight-point advantage over Collins, 51% to 43%.

4:22 Well, Alexis, as the U.S. midterm elections approach, check out Bloomberg's Washington Edition, the newsletter about money, power, and politics in the nation's capital. Our reporters provide reporting and insights through the lens of business, markets, government, and the economy. Sign up now for free at Bloomberg.com slash newsletters.

4:41 And we want to get you updated now on the strength of Hurricane Isaias as it heads to the Gulf region. Bloomberg's meteorologist Craig Allen tracking the storm for us.

4:50 Craig.

4:50 Isaias is on a direct course now for the eastern Gulf Coast, and a hurricane warning runs from Gulfport to Mobile to Panama City. Tropical storm warnings extend out on both sides from New Orleans all the way to Tallahassee and as far north as Birmingham. Winds are over 110 mph at times, and though a little weakening is likely upon hitting the coast, this is a very dangerous hurricane and a peak storm surge of 5 to 7 feet. Now, all weather maps show plenty of rain will linger once the hurricane weakens over land, and it still looks like it's headed up 95 to D.C. by late Saturday, New York City on Sunday, and then Boston. By later Monday, the storm will move on out to sea.

5:32 Bloomberg's meteorologist Craig Allen says roughly 63 percent of U.S. Gulf of Mexico crude output has been shut in, while 500,000 barrels a day of refining capacity is threatened. Silicon Valley giants meantime gathered in Washington to announce a $ 2. 4 billion commitment to fund AI research and Bloomberg's Amy Morris reports now from Washington.

5:53 The Trump administration announced the donations at a ceremony honoring the tech giants while unveiling plans to inject more than $ 100 million into education programs for American researchers in science, technology, engineering and math. The event took place against the backdrop of renewed tensions between the industry and the White House over immigration. Hours before Trump honored Satya Nadella of Microsoft, Vice President J.D. Vance announced that Microsoft and other tech companies were suspended from a visa worker program. In Washington, Amy Morris, Bloomberg Radio.

6:25 All right, Amy, thank you. And speaking of artificial intelligence, just hours after stocks fell on news, OpenAI's revenue would fall below some estimates. Word this morning that chat GPT maker... now expects to reach or exceed $ 70 billion in annualized revenue by the end of the year. Mark Cranfield is Bloomberg's Markets Live strategist.

6:44 Investors are put in a position where they see some of the numbers which don't come up to these elevated forecasts. They sit back and say, well, we're paying too much for some of these stocks. Now, it doesn't mean to say that the AI theme is going to die immediately, but we still need to justify these incredible projections.

7:04 Bloomberg's Mark Cranfield says the latest revenue forecast comes as OpenAI seeks to raise at least $ 30 billion at a $ 1. 4 trillion valuation.

7:12 And Karen, we've got shares of Humana on the move this morning, up about 15%. The company improved its performance on crucial Medicare Advantage ratings that will boost future revenue. Medicare Advantage, the private version of the Medicare program for the elderly, covers about half of all eligible U.S.

7:29 Seniors.

7:31 Well, investors and Guggenheim partners, Alexis, pulled in $ 2. 4 billion from its four largest mutual funds in September after reports that federal authorities are probing CEO Mark Walter's business dealings. The investigation focuses on how Walter, the billionaire owner of the L.A. Dodgers, was able to borrow from his insurance companies without the firm's disclosing the loans to state regulators as required. Despite the recent outflows in its fixed income funds, a Guggenheim spokesperson said the firm has seen continued investment across its institutional and retail strategies.

8:06 Coming up on 510 on Wall Street, 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 John Tucker.

8:13 Good morning, John.

8:14 And good morning. Mayor Mamdani demanding an end to federal immigration enforcement in New York City after an ICE officer shot and wounded a man in front of a child. It happened yesterday afternoon in the Bronx.

8:26 We know that ICE is rotten to its core. Today's shooting is only further devastating confirmation of what we have long known, which is that ICE operates with impunity, that they sow chaos and terror across our country.

8:41 The shooting prompted immediate protests. 28-year-old Oscar Belgal from the Dominican Republic was shot during what the Department of Homeland Security described as a targeted operation. At least seven rounds were fired, hitting the man in the neck. The five-year-old child in his vehicle was unharmed. One of the seven Cornell University frat brothers named in a sexual assault lawsuit is finding New York Attorney General's appointment as a special prosecutor in the case. More from Bloomberg's Erica Herskowitz.

9:10 The attorney for Jillio Lopes filed a petition saying New York Attorney General Letitia James should not be the prosecutor in the case because she has, quote, unequivocally demonstrated a bias and presumption of guilt against the defendants. New York Governor Kathy Hochul appointed James last week to independently investigate Jane Doe's allegations in the lawsuit in which she says she was given alcohol, sexually assaulted, and gang raped at the Chi Phi Fraternity House in October 2024. In her role, James will determine whether criminal charges are warranted. Erica Herskowitz, Bloomberg Radio.

9:40 A U.S.

9:40 Trade judge has approved class action status for a legal fight over refunds for President Trump's global tariffs. The judge in the case, Richard Eaton, siding with importers who contend the process will make it easier for a wider group of companies to get their money back. Defense Secretary Hegseth says a firing squad execution of Nidal Hassan, a former Army major who killed 13 people in a mass shooting in 2009, will be live-streamed to the public. Executing someone by firing squad and doing so in public view would mark an unprecedented event in modern U.S. history. The last U.S.

10:17 military execution came 65 years ago. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker and this is Bloomberg, Alexis.

10:28 Thanks, John. Time now for our Bloomberg Sports Update, and for that, we bring in John Staschauer.

10:33 Thursday night football in Dallas and Tampa Bay upset the Cowboys 24-16 to get their first win of the season. Bucky Irving rushed for 165 yards. The Bucs' undrafted rookie quarterback, Jalen Daniels, outplayed Dak Prescott, who threw two interceptions. Cleveland Guardians, with a six-run sixth inning, beat the White Sox 9-5.

10:52 That series is heading to a decisive Game 5 tomorrow. In Cleveland, Aja Wilson named WNBA MVP for the fifth time the third year in a row. That's your Bloomberg Sports Update.

11:03 Stay with us. More from Bloomberg Daybreak coming up after this.

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11:22 Good morning.

11:23 I'm Karen Moscow alongside Alexis Christophorus. Hurricane and storm surge warnings are in effect for parts of the northern Gulf Coast as Hurricane Isaias makes its way toward land. Emergencies have already been declared in more than 70 counties in Alabama, Florida, and Mississippi. Florida Governor Ron DeSantis is warning residents to prepare for the worst and hope for the best.

11:43 We're preparing for Category 3 landfall. I think most people do not believe it will be that strong when it hits. But my view is you prepare, and then if you end up not having to use all the preparation, you're fine.

11:56 And for more on the storm's path, we're joined by Bloomberg meteorologist Craig Allen. And Craig, so what is it we should be preparing for then if we're preparing for this storm? Is it going to remain a Category 2 or get stronger?

12:08 Good morning.

12:10 It could actually get to a Category 3. Good morning, Karen. And it is now up to 110 miles per hour. Remember, Wednesday, 40 miles per hour when we were talking yesterday, 80 miles per hour this morning, 110. It is sitting over hot, deep Gulf waters right now. and continuing to intensify somewhat. So all three of the main factors are something that everybody along the Gulf Coast would have to prepare for right on up through the I-10 corridor there. As I mentioned before, there is a hurricane warning that's in effect from about Gulfport through Mobile over towards Panama City. That means that the winds could be still around the 100, 110 mile per hour mark. We could also have some very heavy rainfall in excess of eight inches of rainfall

13:01 and storm surge, about a five to seven foot storm surge could be devastating for those right along the immediate coastline.

13:09 Yeah, and we're hearing this could spin up tornadoes too.

13:11 Is that still the case?

13:13 Yes, the forward northeast quadrant of Hurricane could easily produce hurricanes as it is moving in a northward direction. So that forward right quadrant is the most active in terms of violent weather, more violent in producing the tornadoes as it makes its way on land. Eventually, sometime later today into tonight, I forgot to mention the timing, that would be tonight. I would say landfall at that point. And then getting on up here, it's going to take a little time. Obviously, the wind dies down, the storm weakens.

13:48 There's no storm surge to worry about anywhere from D.C. to New York to Boston. But certainly the rain, that's going to hang around. The remnants of a rainstorm, a tropical rainstorm, will be felt any time during the mid and latter part of this upcoming weekend up here.

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14:52 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.