Trump Shifts to Remote Rallies; Binance Suffers Massive Crypto Hack

0:02 Bloomberg Audio Studios.

0:04 Podcasts.

0:05 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.

0:15 Karen, we are now just four days away from the election.

0:18 And with tight Senate races in several key battleground states, President Trump is shifting his campaign strategy. He has canceled upcoming rallies in Kansas and Iowa this weekend. and is holding tele-rallies in the final days instead. But President Trump's dismissing the idea that Kansas Senator Roger Marshall is in trouble against Democrat Adam Hamilton.

0:38 I'm not going to Kansas because he's doing very well. I'm going to do a tele-rally.

0:44 Was President Trump speaking to reporters yesterday in a planned rally in Dubuque, Iowa on Sunday for Republican Senate hopeful Ashley Hinson has also been switched to a tele-rally. The Republican National Committee says the president will hold almost 20 events like these before Election Day Tuesday. And multiple outlets are reporting that Vice President J.D. Vance has also canceled an in-person event that was scheduled for today in Minnesota.

1:05 That was related to fraud. No reason given. And it's unclear whether that event will be rescheduled.

1:11 Now, before that announcement, Nathan, President Trump made one last trip to South Carolina to boost Darlene Graham's campaign to hold her late brother, Lindsey's, Senate seat.

1:20 You know, she's leading, but I had to come here to, we got to make sure we're not taking in politics.

1:26 Politics, you never know, right? So you got to get out and vote.

1:30 The president rallied his supporters in Rock Hill, South Carolina. The latest New York Times Siena College poll has both Graham and Democrat Annie Andrews with about 48 percent support. That's led Fox News to shift its rating on the race to a toss-up, though the Cook Political Report still sees it as leaning Republican.

1:49 And in this final stretch, Karen, President Trump has been racing to convince more Republicans that they're wrong about the economy.

1:55 Bloomberg's Amy Morris reports from Washington.

1:58 The president continues to insist that complaints about affordability are fake. Despite the claims, consumer prices have risen, gasoline is up, inflation-adjusted wages are down, and consumer sentiment is sharply lower than it was before his inauguration. Since Trump took office last year, consumer prices are 6% higher and gas prices are 39% higher. Voters rank the cost of living as a top election year concern. In Washington, Amy Morris, Bloomberg Radio.

2:26 All right, Amy, thank you. The race for Alaska Senate is heating up and not just on the campaign trail. The Justice Department is issuing subpoenas and Alaska's governor has ordered an investigation after the New York Times reported that Democrat Mary Paltola's campaign pushed to recruit candidates to appear on the ballot against Republican incumbent Dan Sullivan, including a retired teacher with the same name. Paltola is addressing the controversy with her supporters.

2:53 I just wanna clear the air.

2:56 I knew nothing about any other candidates on the ballot except.

3:02 For me and the incumbent. That is all I have.

3:06 Ever known about.

3:07 Democrat Mary Paltola spoke to her supporters in Juneau, Alaska. President Trump has called for Paltola to be criminally prosecuted, though so-called ballot stacking is generally considered legal. Attorney General Todd Blanch told Fox News yesterday he would not discuss any criminal investigations, but he did accuse Democrats of cheating.

3:27 Meanwhile, Karen, a dispute over mail-in ballots in California is now turning into a criminal investigation. Sources tell Bloomberg Law top federal prosecutors in the Golden State have begun pursuing subpoenas of state and local officials for allegedly administering illegal voting. The move comes after a federal judge rejected the Justice Department's efforts to force California to set aside up to 20,000 mail-in ballots that it says may have been cast by non-citizens. It's unclear which California officials are being targeted or the charges they might face.

3:57 Nathan, for full midterm election coverage, stay with Bloomberg. On Tuesday, November 3rd, we bring you America Decides. Bloomberg's David Gura 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 Lydes. They take you through the numbers and give you the context that matters.

4:17 Live coverage starts at 6 p.m. on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.

4:23 Well, now to politics overseas, Karen.

4:25 After this week's election in Israel, Prime Minister Benjamin Netanyahu and his allies have secured 53 seats in parliament. That puts him ahead of the main opposition bloc of 48, but short of a majority. Now the parties have to bargain and find a way to team up for at least 61 seats in the 120-seat Knesset.

4:44 We get more from Bloomberg's Dan Williams in Jerusalem.

4:47 We have a few days up to a week in which Israel's president speaks to the leader of each party. Here's that leader's recommendation is who should get first dibs on forming a coalition. Presumably that would be Gadi Eizenkot, the main rival to Netanyahu, given that the sheer number of supporters or at least supporters Asset supporters in parliament appear to be behind him. He then has up to 28 days to try to form a coalition. Sometimes there's arrangements for an extension. However, the numbers simply don't add up in his favor, nor in Netanyahu's favor. So if Netanyahu gets second dibs, the second crack at forming that coalition, the way things stand now short of a very dramatic defection from Eisenkot's block, we may be seeing another election

5:30 in the very near future in the coming months.

5:32 Bloomberg's Dan Williams, in the meantime, reports Israel's election monitor is calling for an investigation into possible foreign meddling after Prime Minister Netanyahu in some far-right alleys decried a high turnout among Arab citizens. Arab parties look set to win about 19 seats in the Knesset.

5:48 They have denied allegations of vote rigging and fraud.

5:51 Well, Nathan, oil on the rise again on signs the U.S. may resume military strikes against Iran. The Wall Street Journal is reporting a top commander briefed President Trump on military options yesterday. Zia Daoud from Bloomberg Economics sees oil rising further, but not as high as the $ 150 a barrel, which some analysts fear.

6:09 Oil can spike, you know, temporarily to any price. We just think that 120 and 130 is a sustainable, probably, ceiling if the war resumes. And that's for the following reasons. We think that a lot of the disruption and the geopolitical escalation is already priced in the price of oil. You see that by looking at the price of oil, which is rising, versus the flows from the region, which are also rising. You know, if you have more flows, prices should come down than not. So that tells me there is a lot of geopolitical risk being embedded in the oil price.

6:39 Bloomberg Economics' Yann Daoud. And checking oil prices right now, NYMEX crude oil up 1.4% at $ 103. 44 a barrel, Brent at $ 116.

6:47 50.

6:47 Well, Karen, this is being called the biggest crypto hack on record, and it's raising fresh questions about the industry's ability to protect digital assets. The incident occurred at Binance, the world's largest crypto exchange. The company says $ 6. 3 billion worth of funds were affected. The company has suspended all withdrawals as it works with law enforcement and completes a security revamp. Blockchain intelligence firm TRM Labs says North Korea was behind the heist.

7:17 Nathan, NVIDIA CEO Jensen Wong says the chipmaker's dealings with Singapore's Megaspeed International were, quote, normal and not unusual. The comments follow a New York Times report that one of the Singapore firm's executives is under investigation for spying. on behalf of China. Wang says NVIDIA has checked to ensure that Megaspeed did not illegally send its artificial intelligence processors to China, and that the U.S. government also has studied Megaspeed's deployments of NVIDIA chips.

7:46 Tech shares are under pressure once again after some disappointing earnings. Shares of Intel are plunging this morning. They're down 26%. Chipmaker's revenue forecast missed analyst estimates hurt by sputtering demand for PC processors and supply chain problems.

8:02 Ruhail Amin is an equity strategist at Bloomberg.

8:05 What's concerned the market with Intel specifically is the comments that management made around the softness in the PC market. So the PC business for them is about 50% off sales, so quite a large driver of the business. And they mentioned that because of limited IT budgets and memory constraints weighing on demand... There's going to be some softness heading into the first half of next year.

8:28 That's Bloomberg's Juhal Amin.

8:30 Intel stock had more than doubled this year before this earnings report.

8:34 Nathan, shares of Amazon, they're lower as well, down 6.5%. The company reported greater capital spending than anticipated and the slowest growth in the core e-commerce business in three years. We get more from Bloomberg Tech host Ed Ludlow.

8:48 AWS revenue jumping 39%, fastest growth in nearly five years. And that growth is expensive, right? So in the quarter gone, Amazon spent $ 77 billion on property and equipment in just that quarter. which helped push trailing free cash flow to negative $ 42 billion. And the lesson learned, I guess, of this earnings period in the hyperscalers context is negative free cash flow, positive free cash flow really matters. The question for investors really is whether all this spending ultimately means returns.

9:16 And Andy Jassy, the CEO of Amazon overall says yes.

9:20 Bloomberg Tech host Ed Ludlow, the results come during a jittery time in the market. Solid increases in cloud sales along a growth engine for Amazon and its nearest rivals in selling on-demand computing infrastructure have not been enough to outweigh concerns about AI expenses.

9:36 We also got earnings from Reddit, Karen, and that stock is plunging pre-market down nearly 22%. The revenue outlook fell below analyst estimates, and Reddit's also planning to limit access to its online platforms in a bid to get users to register for accounts and deepen engagement. That's igniting concerns.

9:54 The move will instead weigh on traffic, while Reddit's already dealing with a drop-off in active U.S.

9:58 Users.

10:02 And it's 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 Michael Barr.

10:08 Michael, good morning.

10:09 Good morning, Karen. Two helicopters collided and crashed into a field southwest of Portland, Oregon, killing all three people on board. Yamhill County Sheriff Sam Elliott says why or how they collided isn't yet known.

10:23 The scene has now been turned over to the Federal Aviation Administration or the FAA and the National Transportation Safety Board who are currently on scene. There are still ongoing efforts, recovery efforts going on at the scene.

10:36 The crash closed a portion of a state highway. One of the aircraft came from the aviation school Jerry Trimble Helicopters. It's a somber day for Star Trek fans around the world.

10:48 Space, the final frontier. These are the voyages of the Starship Enterprise.

10:56 Patrick Stewart has died from Alzheimer's disease and Lewy body dementia. Stewart became a fan favorite for his role as Captain Picard on Star Trek The Next Generation. He would expand his fan base in the Marvel Universe playing Professor.

11:10 X in the X-Men.

11:11 Patrick Stewart was 86. Defense Secretary Pete Exeth has reportedly dismissed a high-ranking Army strategist serving on the Pentagon's joint staff. It follows allegations that Lieutenant General Brett Sylvia disclosed classified information to the public. President Trump weighed in and appeared to confuse the top general, calling him a she.

11:31 She's got problems. She's going to have big problems.

11:34 She did.

11:35 We're very much looking for leakers.

11:37 The Pentagon says the matter has been referred to the Justice Department for potential further legal action. It's happened again. Thieves made off with tens of thousands of dollars worth of frozen meat. This time it was pallets of beef that were stolen from a locked trailer as the truck driver was sleeping in the cab. This is the second food cargo theft this week in Philadelphia and the fourth in two months. Captain John Ryan says they haven't made a connection between the cases yet, but they think the meat is being sold illegally.

12:07 I'm sure it's not for personal consumption with the sheer volume of five pallets of meat.

12:13 I mean, it's an enormous amount of meat.

12:15 The driver says he recorded cell phone video of vehicles believed to have been used by the suspects. Global News, 24 hours a day and whenever you want it. With Bloomberg News Now, I'm Michael Barr and this is Bloomberg. Thanks, Michael.

12:29 Time now for our Bloomberg Sports Update. And for that, we bring in John Staschauer. Thanks, Karen.

12:34 Thursday night football to begin Week 8 in Green Bay. Packers QB Jordan Love, 30-41, three touchdown passes. Green Bay beat Carolina 27-19, a game with five turnovers. There'll be a Game 7 to decide the WNBA championship. We play tomorrow night in San Francisco. Atlanta playing that Thursday afternoon game at home, beat Golden State. 80-69. The parade to honor the world champion Brewers will take place today in Milwaukee.

13:01 That's your Bloomberg Sports Update.

13:04 Stay with us.

13:05 More from Bloomberg Daybreak coming up after this.

13:12 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.

13:23 Good morning.

13:23 I'm Nathan Hager. We are down to the final four. No, it's not March madness. It's the November midterms. But President Trump's campaign blitz through mostly red states is coming to an end, not before one last stop in deep red South Carolina.

13:39 No president has ever worked so hard on a midterm. You know, most presidents, including me, the first couple of times, you sort of take it easy.

13:48 Stay home.

13:49 Well, that was President Trump rallying for Senator Darlene Graham in an airtight race against Democrat Annie Andrews. In this home stretch, though, as we say, the president has canceled his final few weekend events and is opting to hold nearly two dozen tele-rallies instead before Tuesday. Let's bring in David Gurra, To talk more about the midterms, David, the host of Bloomberg This Weekend on Bloomberg Radio and Television.

14:12 Bloomberg Big Take podcast. Great to speak with you, David, as always. We've heard the.

14:17 President say he was going to basically run through the tape into Tuesday, but now switching to tele-rallies.

14:25 How do you read the change in tactics? Good morning.

14:28 He was asked if this had to do with his health, and he did not take kindly to that question on the tarmac, really laid into a Reuters reporter who asked him that question.

14:35 So he's saying that's not the case here.

14:36 He feels that with these he's going to be able to reach more of the electorate. And I should say that MAGA Inc., his super PAC, put out a statement saying that he remains the Republican Party's greatest asset. But this is a surprise in light of what you just said, Nathan. The president made a big deal of the fact that he was going to really be blanketing the country, not just red states, but contested ones as well leading up to the election. That's not happening here. And I think him withdrawing from these rallies in Iowa, and he's supposed to be in Dubuque, Kansas, where he's going to stem for Roger Marshall, the candidate for Senate, likely says something about how close those races are and how salient he

15:10 is as a campaigner in those races. I mean, you look at his efficacy. If it's a deep red state where he's welcome, that's one thing. But in a lot of these places where these races have tightened or we've seen Democrats gain an edge, I think candidates are, shall we say, not thrilled at the prospect of seeing him because he would remind voters of things that have been on their mind, chiefly affordability, of course, but also the tariff war and the war in Iran as well, which have had such a huge effect here on the campaign thus far, Nathan.

15:34 And particularly in those two states you mentioned, Kansas and Iowa, both having their in-person rallies by the president canceled. And we've seen at least one of those candidates, Ashley Hinson, try to give herself some daylight with President Trump as far as what's behind rising diesel prices as well. How could the president's presence affect not just those races, but some of the other major battlegrounds that we've been following over the last several months?

16:03 This is a phenomenon that's really starting to play out in many states, that candidates who were really closely tied to the president are now trying to step away from it. It's a kind of tango, a dance that they're doing with the president and his record. They were so close to him, and now they're trying to set themselves apart.

16:15 We've seen it with Mike Rogers. In Michigan, of course, he's been willing to criticize the president on trade policy. He's criticized him on data centers and AI development as well. Look, as you say, we're four days out here. There's not a whole lot of time to do this. But I think that what it comes down to is the president's message on the campaign trail is one of defensiveness. His policies are the right ones. He wants two more years to kind of dig into them even further here. You have Democrats in most of these states really hammering home this point about affordability and indicating that that's what voters really care about, reflecting that's what voters really care about.

16:47 On the other hand, you've got Kevin Hassett, the president's chief economic advisor, saying there is no affordability crisis. So I think that that contrast is really stark here. You're right to point out we're seeing this phenomenon take place in Iowa, but it's certainly one that I think a number of politicians who are looking at those polls feeling a bit worried about. feel a little more liberated to do here with the hope that it might make a difference.

17:05 Well, let's take a look at what the midterm map looks like with these four days and some of these battleground states, particularly thinking about where the president was just yesterday in South Carolina, where now Fox News is calling that race a toss-up.

17:20 Yeah, it's really extraordinary here. So Lindsey Graham's sister, Darlene Graham, is hoping to hold on to her seat. She's running against Dr. Annie Andrews. This was seen as a foregone conclusion that Republicans would win this seat. Now it seems like there's some doubt there. I should say the Cook Political Report still has this as lean Republican. But it goes back to what I said just about messaging here.

17:38 And I think that it's still unclear here, aside from Darlene Graham wanting to carry on the legacy of her late brother, the late Lindsey Graham, what her message to voters is about why she should be the candidate. And again, I think that Annie Andrews, who's a medical doctor, has really focused on Cost of living is something that she has mentioned time and time again at the rallies and events that she's held here. I think that there's been a deficit here when it comes to the messaging from Darlene Graham and her camp and from the president as well.

18:04 It wasn't a focused speech that he gave at that rally that took place there yesterday. And look, this is an instance when the president, through his support behind her in the primary, of course, Ralph Norman, the congressman, was running for that seat in the primary as well. He feels very burned by the fact that he, a close ally of the president, didn't get a fair shake as he sees it from the president of the United States.

18:21 He's not out there campaigning.

18:22 So she doesn't have the full force of the Republican caucus in South Carolina behind her as we move to Election Day.

18:28 Of course, we've got a battleground state of Alaska as well, with Mary Peltola facing Republican incumbent Dan Sullivan and a couple of other candidates, including one with the how some of these races could shake out.

18:54 It's Mary Peltola versus the Dan Sullivan, I guess, Dan Sullivan and Dan J.

18:58 Sullivan. No, I think that you're right.

19:00 If this is a close race, I think we are going to look at something that's going to play out here over a matter of days, if not weeks. So there was that extraordinary piece in the New York Times, that investigation that indicated or reported that Mary Peltola's campaign was trying to find somebody with the same name as the incumbent senator to run against him. Not illegal, I should say, from all that I've read from election experts here, but chicanery, I think, in a traditional sense.

19:21 Here in the U.S.

19:23 And we'll see sort of what comes of that. But you mentioned the investigations that are underway. the president expressing his anger about this before that news report came out. He directed the Justice Department to look into this. That is proceeding now with new verve in light of that reporting in the New York Times. Then we have the state's Republican governor mounting an investigation of his own as well, suggesting it could lead to criminal or civil charges. So again, getting back to the timeline here, four days out from this election, we'll see how close it is, but there is the specter here of there being these investigations and perhaps charges that come in the days and weeks to come.

19:54 Heavy focus on the midterms for Bloomberg this weekend, I would imagine, David.

19:58 Yes, absolutely.

19:59 We're going to be thrilled to have you here as well on the show. Watch and note.

20:03 Yes, we're going to focus. Gregory Meeks, the congressman from New York, is going to join us. Of course, we're Democrats to win the House. He'd have a real shot at running the Foreign Affairs Committee. Rosa DeLauro is going to join us as well, congressman from Connecticut. And then, of course, we're continuing to keep our eye on events overseas.

20:16 We're going to have the secretary general of the International Maritime Organization. We've talked to time and time again about the straight informants. He'll be with us as well. And then the European Union's top diplomat, Kaya Callis, will be on the show from the G20 foreign ministers meeting in Atlanta.

20:29 This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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21:14 I'm Karen Moscow. And I'm Nathan Hager.

21:16 Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.