Bloomberg Daybreak: US Edition

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

On today's podcast:

1) A FlyDubai aircraft was attacked by one of its pilots, who stabbed or hit the other pilot with an ax, before being overwhelmed by passengers. The plane made an emergency landing at a Saudi airport after taking a sudden steep dive, and the United Arab Emirates attorney-general has ordered an investigation into the incident. The investigation will examine the circumstances and motives behind the attack, including whether it was linked to any terrorist activity, and the airline has suspended flights to and from Israel while the investigation continues.

2) President Trump said former Federal Reserve Chair Jerome Powell should resign from the central bank's Board of Governors over findings the central bank mismanaged the renovation of its headquarters. The Fed's internal watchdog found no evidence of criminal wrongdoing and didn't identify any "administrative misconduct" connected to the $2.4 billion project, but outlined a series of management missteps that caused the project's cost to balloon. Trump directed Attorney General Todd Blanche to study the inspector general's report "and make a determination as to what to do," and said Powell should be forced to resign or sued by the United States Government for "corruption or incompetence."

3) The US benchmark yield climbed to the highest since 2002 as rising oil prices drove a renewed selloff in global bonds. Government debt has been flailing around the world as elevated oil prices ripple through the global economy, pushing investors to bet central banks will further raise interest rates. Investors will seek clues on the US economy's health and the next Federal Reserve steps from Friday's payroll numbers and a list of Fed speakers.
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) President Trump endorsed using outside auditors to assess the safety of artificial intelligence systems through an accord with Silicon Valley leaders. The accord, which carries no legal weight, commits AI companies to regularly meet to set best practices for the industry and implement internal controls for risks related to cybersecurity and other threats. The document suggests that AI companies "should" implement four layers of controls and notes that "it may make sense to codify" its recommendations into law or regulation in the future.
2) OpenAI aims to raise at least $30 billion from investors in a new round of funding, according to people familiar with the matter, after pushing back its plans for an initial public offering. The company is seeking a valuation of around $1.4 trillion, not including the money raised, and the fundraising discussions are early and could change. OpenAI has seen strong revenue growth, with its revenue run rate accelerating over the summer and topping $40 billion, and the company's run rate revenue has grown by 70% since July.
3) Crude oil flows from the Middle East are returning toward pre-war levels despite continued risks to shipping, according to JPMorgan and Goldman Sachs. Shipments of crude oil have rebounded to 17.5 million barrels a day, or 98% of pre-war levels, while flows of products such as diesel and gasoline were at 3 million barrels a day, or 58%, according to JPMorgan. The global oil market is roughly balanced in September, according to Goldman Sachs, which estimates that oil exports from the Persian Gulf had recovered to 23.3 million barrels a day over the last week.
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Today's top stories, with context, in just 15 minutes.

On today's podcast:

1) Iranian officials have privately expressed pessimism about reaching a deal to end hostilities with Washington and reopen the Strait of Hormuz before US midterm elections in November, according to people familiar with the matter. Iran and the US made little progress during talks in New York on the sidelines of the United Nations General Assembly last week and the Islamic Republic believes there’s a high chance of the conflict escalating after the Nov. 3 vote, according to the people, some of whom were briefed by Iranian officials. They asked not to be named discussing sensitive matters.

2) President Donald Trump criticized the release on bail of five men held over an alleged terror plot against a Royal Air Force base used by the US for strikes against Iran, as British police continue to investigate foreign links to the incident. “I’m surprised that they released them, I wouldn’t have done that,” Trump told reporters on Monday.The decision to release the suspects sowed confusion about an incident that authorities had only a day earlier described as a serious attempted attack disrupted at a late stage.

3) The US Treasury Department took a big step toward curbing a Wall Street boom in investment strategies that help cut tax bills, with a notice signaling potential action on an array of tactics and a ruling that will limit the benefits of a popular ETF maneuver. The notice detailed a list of tax trades similar to those deemed “potentially abusive” and “too good to be true” by Treasury officials at an industry seminar in July. These include hedge-fund strategies that use swaps and currency derivatives to generate ordinary losses that can offset income tax — transactions which are at the heart of products such as AQR Capital Management’s Delphi Plus fund.
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Today's top stories, with context, in just 15 minutes.

On today's podcast:

1) The US and China detailed a plan to cut tariffs on about $30 billion of imports from each country, as the superpower rivals take steps to steady ties following a summit between leaders Donald Trump and Xi Jinping. The list for goods entering the US contains 77 entries, including fireworks, household products, sporting equipment and toys, according to documents published by both governments.

2) Iran stuck to its seven-day proposal for reopening the crucial Strait of Hormuz, saying it won’t soften its conditions, while President Donald Trump sent mixed signals about his willingness to reach a deal. The conditions Iran wants are something Washington might have agreed to about a year ago, Trump told Axios in an interview on Sunday, saying that Tehran has overplayed its hand. The US president added that he expects negotiations to resume this week even though he rejected Iran’s latest proposal, Axios reported.

3) UK police were investigating a potential terrorism incident after five men were arrested near an air base used in US strikes on Iran, with President Donald Trump saying the suspects were “looking to do big damage” to the facility. Trump credited British authorities with foiling the incident early Sunday at RAF Fairford, a key launching point for US strikes against Iran. Police were working to establish a motive for what they considered to be a serious attempted attack disrupted at a late stage, according to people familiar with the matter, who asked not to be named discussing an ongoing investigation.
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Stuck in her childhood home during the pandemic, Kayla is shocked to learn that photos of her, altered to make her look naked, are posted to a website where men swap violent fantasies about women. A conversation with police leaves Kayla discouraged.
For official transcripts and additional information on this series, go to bloomberg.com/levittown
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