October 13, 2026: OpenAI Staffer Arrested Over Hidden Device, Pope Leo Lung Cancer, More

0:02 News when you want it with Bloomberg News Now, I'm Matt Piper. OpenAI says it discovered a sophisticated recording device hidden inside one of its offices. The company says it was planted by an employee last month who has now been terminated. He is a Saudi national who was arrested last week. The company says it does not appear the former employee accessed anything like source code or customer data.

0:24 Pope Leo has lung cancer and had the lower lobe of his right lung removed. The surgery confirmed the diagnosis. The 71-year-old was in the operating room for about three hours, with the surgery lasting 90 minutes, the Vatican says. It says the surgery was successful with no complications. Oncologists say his prognosis is excellent since it was removed early. Hike or no hike? New York Fed President John Williams says he still sees one more interest rate hike as appropriate this year, but at the moment does not believe it will be necessary for the central bank to increase rates again next year. Williams says there are still signs inflation will slow and move toward the Fed's 2% target in 2027.

1:03 Bloomberg's Michael McKee.

1:05 He's in the risk management camp. He sees no signs of an overheated economy. The labor market's in balance. The tariff inflation effect will fade. And he says even if energy prices stay up, they're not going to push inflation higher next year. So that gives him some confidence.

1:21 That was Bloomberg's Michael McKee. Stocks bounced back from session lows following Williams' rate remarks. Cornell University is suspending all fraternity parties for the rest of the academic year. The university president announced plans to strengthen campus safety and bolster support for victims of sexual assault. The move follows sexual assault allegations from a former student that roiled the Ivy League school and drew national attention. Any fraternity holding an in-house party or social event will face an immediate emergency suspension.

1:50 Today marked the start of the earnings season. JPMorgan Chase reported a surprise drop in fixed income trading revenue in the third quarter. It was the first decline on that line item in more than two years. Citigroup, meantime, notched its best third quarter results in 10 years. Even so, its shares fell as much as 5.6% by the market close.

2:10 Herman Chan covers the banks for Bloomberg Intelligence.

2:13 They did offer improved guidance for the full year on return on tangible equity, which is their big profitability marker. They lifted it up to over 11%, but that may have disappointed some folks because year-to-date it's over 12%. So there's some questions are if the fourth quarter will represent a slowdown.

2:33 That was Herman Chan from Bloomberg Intelligence. One of the nation's biggest banks getting hit with a massive fine for some troubling lapses. Bloomberg's Tom Busby has that.

2:43 Bank of America has been fined more than $ 1. 2 billion by the Treasury for money laundering and U.S. sanctions violations. The Financial Times reports the action covers penalties for not alerting authorities to more than $ 5 billion in transactions that were linked to potential Chinese money laundering networks and illicit financing linked to Latin America. B of A reports third quarter earnings before the markets open on Wednesday and expects those results to include the $ 1. 2 billion charge, which is expected to cut into net income by about 17 cents per share. Tom Busby, Bloomberg Radio.

3:16 Saudi Arabia intercepted more missiles and drones launched by Iran-backed Houthis. President Trump also issued what appeared to be a veiled threat to the militant group. On social media, he said the Houthis were purposefully trying to drive up oil prices at the behest of Iran ahead of the midterm elections.

3:31 Here's Kelly Greico, senior fellow at the Stimson Center.

3:34 The Houthis in.

3:35 Particular, they're really good at, with these launchers, hiding them, moving them really quickly. They're practiced for over a decade at this, and it makes it really hard to find them and destroy them. And they're able to ultimately get things through. And I think this is one of the reasons probably as well that the president is going to be very reluctant to get involved in this situation because he's learned already once how challenging this is. And of course, he's very concerned about oil prices.

4:01 Kelly Greico, senior fellow at the Stimson Center. The latest Houthi attacks followed days of repeated strikes on Saudi Arabia's main airport in Riyadh. Saudi Aramco headquarters in eastern Saudi Arabia were hit during a missile attack by Houthi militants, causing a fire in a part of that complex yesterday.

4:17 We are told the fire has since been put out. Ambassador to Greece Kimberly Guilfoyle has resigned. That's after the White House asked her to. Guilfoyle came under scrutiny in a series of reports by the Wall Street Journal that she requested or accepted money, travel, and other benefits from people while using her access to U.S. officials and her diplomatic position. President Trump addressed the matter aboard Air Force One.

4:40 She went to Greece.

4:42 She was doing a good job, but we didn't like what we were reading.

4:46 Guilfoyle denies any wrongdoing. The Justice Department appears to be stepping up a criminal investigation into the immigration history of Minnesota Democratic Congresswoman Ilhan Omar and her family. The New York Times reports federal agents have issued subpoenas to some of Omar's relatives as investigators look for evidence of fraud and false statements in immigration paperwork. Omar's sister, Sarah Noor, received a subpoena, along with at least one other family member.

5:12 On Monday, Homeland Security agents executed a search warrant at Omar's home in Washington. She is repeatedly denied wrongdoing in Immigration Matters. And that's news when you want it with Bloomberg News Now. I'm Matt Piper, and this is Bloomberg.