Zelenskyy Defies Trump; Leakers 'Should Be Shot' Says President

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.

0:14 Karen, we begin with new developments in Ukraine this morning. The president of Ukraine, Vladimir Zelensky, says he plans to resume strikes on Russian refineries, defying a request from President Donald Trump to stop Zelensky told the Financial Times he feels betrayed. He's accusing the president and Elon Musk of limiting Ukraine's satellite usage.

0:35 He talked about it with Piers Morgan.

0:38 What was really strange and what was not like between partners, the day switch off Starlink. So something absolutely crazy steps between us. So we hold energy ceasefire from our side.

0:56 That was President Volodymyr Zelensky of Ukraine speaking with Piers Morgan. Now, SpaceX CEO Elon Musk wrote on social media that any limits on speed or usage of Starlink are decided by the U.S.

1:06 Military and ultimately the president.

1:09 This morning, Ukraine says normal Starlink service has been restored for its military, though it is still seeking clarification about yesterday's restrictions.

1:17 Elsewhere in geopolitics, Nathan, the EU and Gulf Cooperation Council are expected to postpone their flagship political summit as host Saudi Arabia comes under attack from Yemen's Houthis. The meeting in Riyadh, scheduled for October 24th, was supposed to bring leaders of EU member states together with leaders of Gulf countries to discuss energy and trade. Sources tell Bloomberg some Gulf officials told European counterparts they're likely to delay the event due to security concerns. The Saudi government did not respond to a request for comment.

1:47 Staying overseas with a focus on the economy, Karen, we heard this morning from former European Central Bank President Mario Draghi. He spoke with Bloomberg News Editor-in-Chief John Micklethwaite at the New Economy Forum in New Delhi, India. Draghi discussed economic pressures in France, saying it's a long way away from more recent European economic crises.

2:06 But at that time, you know, if we go back, you will remember, we had a revelation that one country of Europe, Greece, had somehow false numbers in their budgetary accounts.

2:25 Former ECB President Mario Draghi says the central bank is unlikely to intervene to help France. He's citing high and rising inflation as the central bank's first priority. Catch that conversation with our editor-in-chief, John Micklethwaite, and all our high-profile discussions from the Bloomberg New Economy Forum. We have them all for you on the Bloomberg Terminal, Bloomberg.com, and the Bloomberg Business app.

2:45 Well, Nathan, let's get to domestic politics now. The midterm elections are less than three weeks away, and President Trump held two rallies yesterday to boost Republican candidates. At his first event in Bullhead City, Arizona, the president complained about negative coverage of the war with Iran.

3:02 You know, somebody leaked some sleazebag.

3:04 They ought to go to jail and be shot. For the rest of their life, they should be in jail. In my opinion, leakers should be shot.

3:09 They should be shot.

3:12 The president said a leak about strike plans against Iran led him to reschedule an operation, though he didn't specify which one. And later in Kellysville, Montana, President Trump put a focus on the economy.

3:25 Like we had the greatest economy in the history of our country in my first administration.

3:30 We are going to blow it away in.

3:32 This administration as soon as.

3:37 As soon as Iran, Iran's going to be over very quickly.

3:40 President Trump's campaign stops are part of a month-long blitz ahead of the November election.

3:46 Turning to the markets now, Karen, the global artificial intelligence sell-off is accelerating. South Korean stocks closed close to 8% lower. And it forced a temporary trading halt this morning. Bloomberg's John Tucker is here with the latest.

3:59 John.

4:00 And Nathan, Asia bore the brunt of those losses. The chip heavyweight Samsung Electronics and SK Hynix both sinking more than 9 percent. Taiwan Semiconductor Manufacturing losing 2 percent before reporting profit that beat estimates. Still, no reason to panic just yet, says Henry Allen with Deutsche Bank.

4:18 The S & P 500 is still only 1.3% beneath its all-time high from last week. So, we are not yet seeing this catalyze into a broader sell-off.

4:29 In the U.S., the chip route did continue yesterday with the SOX, the semiconductor index, down another 4.3%. It's down 20% from its June peak, the usual definition of a bear market. And it doesn't help that inflation has put higher financing costs in focus. The neocloud coreweave saw its financing costs surge and its share price plunge 17% yesterday. I'm John Tucker, Bloomberg Radio.

4:56 All right, John, thank you. Well, AI giant Anthropic has told prospective investors its third quarter revenue hit $ 16. 8 billion as it pushes ahead with plans to go public. The company says it achieved profitability in the quarter on an adjusted basis. Jensen Wong, the CEO of NVIDIA, whose chips power Anthropic Models, talked about Anthropic's upcoming IPO in an exclusive discussion with Bloomberg's Emily Chang.

5:21 I'm delighted to see their success. First of all, these are the two fastest growing technology companies in history. Their revenues are real. And their profits generated from the revenues are real. This last six months, AI went through a transition. It used to be unprofitable, unuseful, very curious, great potential.

5:39 And now we're using it in real work. It's productive and it's profitable. It's generating enormous profits for them. And so because the tokens are now profitable and because the token demand is so incredible It's the reason why they want more compute, because the compute translates to more tokens, to more profits, and that flywheel for them is going to be great.

5:59 NVIDIA CEO Jensen Wong speaking with Bloomberg's Emily Chang. Anthropic is set to formally market its IPO as soon as the week of November 9th.

6:07 Karen, Taiwan semiconductors define concerns about the sustainability of the global AI build-out and its latest earnings. The chipmaker delivered a better-than-expected revenue outlook, expecting sales of as much as $ 54. 3 billion this quarter. That was ahead of analyst estimates. And that outlook follows a 69% jump in quarterly profit for TSMC.

6:28 Well, Nathan, OpenAI has agreed not to use trade secrets that Apple claims were stolen by employees who defected from Apple to OpenAI. The agreement requires OpenAI to collect forensic images of employees' devices that may contain Apple's confidential information. U.S. District Judge Edward Davila will have the power to enforce the agreement. The accord gives Apple a guarantee that its proprietary information remains off-limits for OpenAI's own technology development.

6:56 Well, Karen, two companies that have been surging in the stock market could be getting ready to announce a merger soon.

7:02 We get more on that from Bloomberg's Matt Piper.

7:05 A merger between Tesla and SpaceX could be announced ahead of the electric vehicle maker's annual general meeting. That's according to analysts at Barclays. The true value of accommodation would be in vertical integration of the two companies' AI technologies in addition to some financial synergies. Analysts expect the 2026 meeting to be held on December 6th at the latest.

7:26 The main hurdle for any deal would be the shareholder votes, as both Tesla and SpaceX shareholders would likely have to approve the combination.

7:33 Matt Piper, Bloomberg Radio.

7:35 All right, Matt, thank you.

7:36 Well, JPMorgan Chase CEO Jamie Dimon is speaking out about U.S. and global growth. He says geopolitics is reshaping economies.

7:44 There's always uncertainty. And I remind people, you look at the economy, if you can open up the newspaper of any day, of any week, of any month since World War II, and you have wars, you have politics, you have polarization, you get deficits, you have impeachments, you have all these various things. But it's very hard to predict the cycles for any of that. I do think this is different. It's not different because of the economy. It's different because of Ukraine, wars, Iran, Middle East, our relationship with China, and the fact that we're running the largest global deficits the world's ever seen, ever, and we're doing it during good times.

8:18 JP Morgan's Jamie Dimon made those comments at the Economic Club of Chicago.

8:22 And we heard from another big bank executive yesterday, Nathan, Bank of America Chairman and CEO Brian Moynihan. He spoke with our Jonathan Farrow about the bank resolving issues tied to the $ 1. 2 billion Treasury penalty. Moynihan says the bank's already carrying out remediation work.

8:39 We had an examination a few years ago. We got a cease and desist order. We have to do that work. This fine relates to that effort. There was a debate a bit about what exactly we had to do. That's resolved. It's behind us. The billion two is going through. We've been expending the money in the run rate already to do the remediation because a few months ago we started picking up the cost structure and putting it in.

9:06 And Bank of America CEO Brian Monahan also said the bank plans to spend $ 300 million to $ 500 million on AI initiatives this year while working with technology companies on safeguards for agentic payments. 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. Michael, good morning.

9:28 Good morning, Karen. The Cornell University faculty met behind closed doors to debate a no-confidence resolution condemning the school's leadership over its handling of sex assault allegations on campus. It follows a woman's lawsuit filed against Cornell and seven men she accuses of gang raping her at a fraternity in 2024.

9:48 Faculty Senator Iris Packman says Cornell President Michael Kotlikoff faced senators for a tense meeting.

9:55 He did not say anything of real substance and he definitely got defensive when faculty... started asking very direct questions and making comments about his record.

10:05 Meanwhile, Kotlikoff acknowledged some missteps but also defended his leadership. Republican Congressman Mike Lawler of New York and the woman who wants his job, Democrat Kate Conley, were on the debate stage, Conley last night, on A.I.

10:20 My opponent, Mike Lalder, in his vote last year for the one big ugly bill actually voted for a version that would prohibit states from regulating AI for 10 years. Congress doesn't want to solve this problem. They want to look out for their billionaire backers and trillionaire backers like Elon Musk, who's pouring over $ 260 million into this midterm election.

10:38 Lawler on ICE agents.

10:40 You guys want to focus on a gangbanger who has put people.

10:44 In harm's way.

10:45 I want to make sure that our communities are safe.

10:47 And you know why they're not safe?

10:49 Because Kathy Hochul has released over 7,000 convicted criminal illegal aliens, including murderers, rapists, drug dealers, gangbangers, and drug traffickers back out onto the street.

10:59 Audio courtesy of PIX11. Federal authorities investigating Minnesota Representative Ilhan Omar have seized the Democratic lawmakers' phone and have issued more than a dozen grand jury subpoenas, including to some of her relatives. According to AP, the subpoenas were issued for a grand jury collecting evidence in Minnesota as authorities probe a potential fraud in Omar's immigration paperwork. On Monday, Omar's Washington, D.C. home was searched just weeks before the November midterms in which Omar is seeking re-election. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen.

11:37 Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Staschauer.

11:42 Thanks, Karen. Game three of the NLCS in L.A. and Milwaukee got a home run from Jackson Chorio on the first pitch of the game. A go-ahead two-run shot of the seventh from Jake Bowers. The Brewers won 6-2. One more win and they're going to the World Series for the first time since 1982. They'll play game four tonight.

11:59 They'll play game three of the ALCS this afternoon in Cleveland. The Guardians and the Rays are tied now. Seahawks and Broncos kick off week six in the NFL tonight in Denver. That's your Bloomberg Sports Update.

12:13 Stay with us. More from Bloomberg Daybreak coming up after this.

12:21 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. Good morning.

12:32 I'm Nathan Hager on a morning where Ukrainian President Volodymyr Zelensky says he is resuming attacks on Russian oil refineries, saying he feels betrayed by U.S. President Donald Trump.

12:43 We don't want to be involved on some of some things. The diesel deal, I don't want to be involved. If he attack us, we will respond. This is our rule. Don't involve us to some diesel deals.

12:55 That was Ukrainian President Volodymyr Zelensky in an interview with the Financial Times. Joining us this morning is Bloomberg News Managing Editor Ben Sills. Ben, it's good to speak with you this morning. What more do we know about whether attacks have resumed or are they just about to resume?

13:11 Good morning.

13:12 Good morning.

13:13 Thank you very much. I think that the main development this morning in Ukraine has been a story that's just broken on the terminal the last 10 or 15 minutes or so, that the Ukrainians are reporting that their Starlink services are operating normally again.

13:31 There was an.

13:34 That kind of satellite-based Internet service was running more slowly than usual, and that hampered their efforts to detect and repel Russian air attacks. But they've responded this morning. That's back to normal. So that's a positive sign in terms of the support that they are getting from the U.S.

13:52 But there was a question, wasn't there, about why there might have been this attack? throttling or slowing of uh starshield service for the military has there been any resolution to that ben no.

14:05 We heard conflicting reports from from from elon musk and and the u.s administration over who was actually in control of that um um so that that was never cleared up that the the um I think the Ukrainians were just simply looking at the harsh tone they were hearing from the White House and concluding that this was a deliberate decision from somebody either in the White House or close to.

14:34 In our last minute here, unfortunately, we are hearing a lot of media interviews now with the Ukrainian president talking about this sense of betrayal that he feels from the U.S.

14:44 President. Where do U.S.-Ukrainian relations stand this morning?

14:47 It's a very difficult moment. I think back to that awful meeting in the Oval Office where J.D. Vance was berating Zelensky for his manners, essentially. And it's a moment where you can see that Zelensky is speaking from the heart. I'm not sure he's necessarily measuring his words very carefully. He's in Brussels today. Tomorrow he's going to speak to EU leaders tomorrow. And I would expect that some of those that are closest to him will be trying to calm him down, to counsel him on how he can get the relationship back on track and remind him of how important the U.S. support is to the Ukrainian military, regardless of what Donald Trump might be doing with the Russians at the moment.

15:33 This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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