Bloomberg Daybreak: US Edition

Today's top stories, with context, in just 15 minutes.   

On today's podcast:   

1) The Supreme Court refused to clear the Postal Service to enforce new restrictions on mail-in ballots for the congressional midterm elections, rebuffing the Trump administration’s request to intervene. The court denied the Justice Department’s request to lift a Boston federal judge’s order that barred the Postal Service from making its new mail-in ballot rules mandatory through the November contests. The Supreme Court's decision means that the Postal Service cannot enforce the new rules for the midterms, but the legal fight over whether the agency can ultimately adopt the rules for future election cycles may still continue.   

2) The 10-year US Treasury yield rose to the highest in almost two decades, driven by surging energy prices, mounting debt and inflation. The yield on the global bond benchmark rose to 5.02% on Tuesday, surpassing a peak from 2023 to hit the highest since 2007. The pressure in the bond market raises the stakes ahead of the Federal Reserve’s interest-rate decision, where investors expect officials to raise short-term borrowing costs for the first time since July 2023.   

3) President Trump's opposition to guardrails on artificial intelligence puts him at odds with lawmakers from both parties who have AI safety fears. Trump belittled a push led by Anthropic PBC and OpenAI to slow work on cutting-edge systems, dismissing existential fears about AI as "a hoax." Lawmakers are working on legislation aimed at addressing AI safety concerns, including a bipartisan group of senators who are working on legislation requiring top AI developers to prevent catastrophic risks.Eric Mollo

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Anthropic and OpenAI are promising measures to rein in the pursuit of cutting-edge AI models to better understand the risks posed by the technology following a series of security breaches. The two companies' calls to slow down AI development may be resisted by forces in the tech industry, financial markets, and the Trump administration, which has staked its economic agenda on aggressive AI advancement. Anthropic CEO Dario Amodei has proposed opening the company's doors to third-party evaluators to review new systems before their release, and OpenAI CEO Sam Altman has said he likes the idea and plans to implement it at his company.
2) Oil prices rose after Saudi Arabia closed a major crude pipeline following attacks, disrupting a key route that bypasses the Strait of Hormuz. The closure may lead to output cuts if it is prolonged, according to June Goh, senior oil market analyst at Sparta Commodities SA. A meeting between Iran and several Gulf nations on creating a temporary shipping lane through Hormuz was postponed, amid a rapid military advance by Iranian-backed Houthi militants in Yemen.
3) The Fed faces pressure to hike interest rates to tame elevated inflation, which puts Chair Kevin Warsh on a collision course with President Trump, who has pressed the central bank to slash rates. Trump has repeatedly argued that US borrowing costs should be the lowest in the world, and a rate hike could lead to a public rebuke from the president, damaging Warsh's credibility. Warsh is trapped in an institutional vise, where he must balance the Fed's independence with the president's pressure, and a decision to hike or hold rates could have consequences for inflation and the administration's economic goals.

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Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.

• In the US – a look ahead to the next FOMC decision, along with a focus on 3 stocks for the week ahead.
• In the UK – a look ahead to Sweden’s general election.
• In Asia – a look ahead to the next monetary policy decision from the Bank of Japan.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Politicians and public figures will gather today marking 25 years since the September 11th terrorist attacks in the United States National remembrance ceremonies will take place to honor the more than 3,000 people killed that day. This year, the National September 11th Memorial & Museum is adding a seventh moment of silence at 12:30pm, honoring thousands whose lives were cut short by illnesses linked to the toxic aftermath of the attacks. More than 8,000 people enrolled in the World Trade Center Health Program have since died, and officials say tens of thousands continue to battle 9/11-related health conditions. The FDNY will also lead a moment of silence at 9:11a E at the Times Square triangle, before heading to the NASDAQ to ring the opening bell.
2) A six-member bloc of Gulf states are considering meeting with Iranian officials to discuss the future of the Strait of Hormuz, people familiar with the matter said. Oman is aiming to get foreign ministers from the Gulf Cooperation Council and Iran together on Monday in Salalah, according to a person familiar with the matter. The meeting is not confirmed and worsening hostilities between Saudi-backed forces and the Houthis may complicate the plans, another person said.
3) Diesel prices rose above $6 a gallon for the first time ever, raising the risk of further energy-driven inflation. The impact of record-high diesel prices will trickle down to consumers as diesel is a key input in food prices, the cost of shipping and construction. Geopolitical turmoil has sharply curtailed the world’s ability to produce and ship sufficient quantities of diesel, with fighting around the Strait of Hormuz and lost refining capacity limiting production and distribution.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) President Trump offered voters a quid pro quo, saying elect Republicans and get a $5,000 payout, which he called the Trump dividend. The proposal is unlikely to become law, as fellow Republicans have already rejected similar ideas and Congress would need to approve a cash payment program with a price tag well over $1 trillion. Trump's announcement was met with skepticism, with some seeing it as a desperate attempt to motivate voters and others predicting it will backfire, particularly given the US debt at record levels.
2) Iran is ready for a more intense war and will escalate counterstrikes if the US continues attacking its territory and infrastructure, according to a senior official. The US and Iran have been engaged in a war for seven months, with recent tit-for-tat attacks pushing up energy prices and adding pressure on President Trump to end the conflict. Iran's leaders believe they have little choice but to keep fighting until they're confident Washington will be too wary to attack again in future, despite the worsening economic situation in the country.
3) Apple unveiled the iPhone Duo, the company's first foldable smartphone, which will improve on rivals' foldable models. The iPhone Duo has a 7.6-inch screen, an outer 5.4-inch screen, and will be able to work with the iPad's Apple Pencil stylus, with a cost starting at $1,999. The device will be available for preorder on Oct. 16 in more than 70 countries and regions, ahead of its release on Oct. 23, and will sit at the top of Apple's iPhone lineup.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Brent oil topped $100 a barrel for the first time since July, as attacks between the US and Iran and a recovery in Chinese oil buying propel the global crude benchmark higher. The conflict has disrupted flows through the crucial Strait of Hormuz chokepoint, although millions of barrels a day continue to cross the waterway — mostly on tankers with their signals turned off. The continued disruption means inventories have continued to decline across the globe, with analytics firm Vortexa seeing the amount of oil on ships at sea down by more than 150 million barrels since the middle of July.
2) Apple's $570 billion summer surge is saddling new Chief Executive Officer John Ternus with high expectations heading into the company’s most anticipated event in years: the unveiling of the foldable iPhone on Wednesday. Apple's stock has rallied 15% since June 25, driven by excitement about the new lineup of devices, particularly the foldable phone. The company's revenue is expected to rise 15% in fiscal 2026, which would be the fastest pace of growth since 2021. Apple's ability to protect profitability is critical for a stock that has grown increasingly expensive, with a valuation well above its 10-year average multiple and the S&P 500.
3) Representative Chris Pappas won the Democratic primary for a New Hampshire Senate seat, setting up a November showdown with former Republican Senator John Sununu. The seat is a must-win for Democrats in a state that hasn’t elected a Republican senator in 16 years, with a loss complicating the party’s chances of securing a Senate majority. Pappas defeated medical scientist Karishma Manzur, earning roughly 60% support, while Sununu defeated Scott Brown, leading with almost 70% of the vote.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Canada imposed tariffs of 15% to 50% on hundreds of products from the US as Prime Minister Mark Carney bets that standing up to President Donald Trump will help Ottawa's negotiating position. The measure will hit US exporters particularly hard in states such as Michigan and Ohio that do a lot of business with Canada and host heated races in November's midterm elections. Canada's retaliatory tariffs are meant to make the cost of this trade war real enough for American businesses and consumers that Washington sees a clear incentive to return to the table.
2) Brent oil approached $100 a barrel after Saudi Arabia said operations at several energy facilities were halted by attacks. The state-run Saudi Press Agency said the strikes took place Tuesday and wounded a number of people, with Iran-backed Houthi militants saying they targeted the kingdom's Jazan refinery and facilities. Markets are increasingly pricing a prolonged Mideast conflict, with Goldman Sachs analysts modestly raising the bank's oil-price estimates on the assumption that shipping disruptions will persist into 2027.
3) The yen is closing in on its strongest level this year after a break through 155 per dollar triggered stop-loss orders, putting the 152 area firmly in traders’ sights. Expectations for tighter BOJ policy have provided a more fundamental source of support, while the break through 155 is now adding technical momentum. The yen’s rally has also extended across major crosses including the euro, pound and Australian dollar, pointing to broad-based strength rather than simply dollar weakness.

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On this special Labor Day Holiday edition of Bloomberg Daybreak - hosted by Nathan Hager we: 

• Update on where a planned mega takeover in the business world stands on the legal front. Bloomberg Intelligence Senior Litigation Analyst Jennifer Rie will update us on Paramount's planned 110 Billion dollar acquisition of Warner Brothers Discovery.
• Plus big tech in focus this week. Oracle reports earnings on Wednesday. We will have a preview of what's ahead for Larry Ellison's company with Bloomberg's Brody Ford in San Francisco.
• Also on Wednesday..Apple will hold its biggest product introduction of the year.. It will also help kick off the tenure of new Chief Executive Officer John Ternus. We hear more from Bloomberg's Mark Gurman

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Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.

• In the US – a look ahead to the U.S CPI and PPI reports and a focus on 3 stocks for the week ahead.
• In the UK – a look ahead to the next decision from the European Central Bank.
• In Asia – a look ahead to the 18th BRICS Summit in India.

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US job growth surged in August and the unemployment rate held steady, suggesting the labor market has more momentum than previously thought. Nonfarm payrolls increased 162,000 last month and July’s job losses were revised away, according to Bureau of Labor Statistics data out Friday. The August increase topped all estimates in a Bloomberg survey. The unemployment rate remained at 4.1%.

Bloomberg's Tom Keene and Damian Sassower get reaction from:

• Claudia Sahm, Chief Economist at New Century Advisors, brings us into the jobs report
• Amy Wu Silverman, Head: Derivatives Strategy at RBC, reacts to today's jobs report
• Kristina Campmany, Senior Portfolio Manager at Invesco, talks about the bond market's reaction to jobs 

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