Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: First, the US is on track for a government shut
Speaker 3: down in just four days October. First, that's despite some
Speaker 3: progress after talks that carried into the early morning hours.
Speaker 3: Bloomberg Zamy Morris has the very latest from Washington.
Speaker 4: Senate leaders introduced their own bill to averta shutdown, and
Speaker 4: in the House, Speaker Kevin McCarthy launched a debate on
Speaker 4: a series of full year spending bills. But in the Senate,
Speaker 4: Republican Rand Paul is threatening to slow it down because
Speaker 4: it includes aid for Ukraine. It's likely dead on arrival
Speaker 4: in the House anyway, where conservative hardliners say they'll try
Speaker 4: to oust Speaker McCarthy if he allows that bill to
Speaker 4: come to a vote. However, moderate House Republicans are preparing
Speaker 4: to join Democrats to force a vote on the bipartisan
Speaker 4: Senate bill even without McCarthy's approval. In Washington, I'm Amy Morris,
Speaker 4: Bloomberg Radio.
Speaker 2: Erniemy, thank you. Another major political story we're following this
Speaker 2: morning involves more legal trouble for former President Donald Trump,
Speaker 2: and we get the latest with Bloomberg's John Tucker in
Speaker 2: New York, John good Morning and Karen of Manhattan.
Speaker 5: Judge ruled that Donald Trump committed fraud for years running
Speaker 5: his business venture. It's a major blow to the former
Speaker 5: president in the biggest civil case against him. Let's schedule
Speaker 5: to go to trial next week. The judge ordered some
Speaker 5: of the former president's companies removed from Trump's control and dissolved.
Speaker 5: He ruled that Trump and his associates massively overvalued his
Speaker 5: assets on paperwork used in making deals and securing loans.
Speaker 5: The trial will now only determine just how much punitive
Speaker 5: damage Trump will have to pay. The New York Attorney
Speaker 5: General Letitia James, is asking for at least a quarter
Speaker 5: billion dollars in damages. Trump's attorneys say they will appeal
Speaker 5: in New York. I'm John Tucker, Bloomberg Radio.
Speaker 1: Okay, John, thanks now.
Speaker 3: Former President Trump is not going to be participating in
Speaker 3: Tonight's second Republican presidential debate. Seven other candidates will be there.
Speaker 3: It's being held at the Reagan Presidential Library in Semi Valley, California.
Speaker 2: Well The candidate to get ready to debate, Nathan the
Speaker 2: United Auto Workers will be back out on picket lines
Speaker 2: for day thirteen of their strike. President Biden joined them
Speaker 2: outside a GM plant near Detroit and urged them to
Speaker 2: stick with it.
Speaker 6: You guys, uaw, you saved the autobile ministry back of
Speaker 6: two how four, made a lot of sacrifices, gave them
Speaker 6: a lot.
Speaker 7: And the companies were in trouble.
Speaker 2: If now they're doing incredibly well, and guess what you
Speaker 2: should be doing incredibly well too. The President took up
Speaker 2: a bullhorn and said the union should be able to
Speaker 2: bargain for forty percent pay hike. Ex Acting Labor Secretary
Speaker 2: Julie Sue and Senior Whitehouse Advisor Jeans Spurling are staying
Speaker 2: in Michigan to aid the negotiating process. Well.
Speaker 3: Meanwhile, Karen, another labor dispute is officially over. Hollywood screenwriters
Speaker 3: are headed back to work. Bloomberg Zed Baxter has that
Speaker 3: story from California.
Speaker 8: After almost five months, the governing boards on both coats
Speaker 8: have approved the deal. They've provided copies to members and
Speaker 8: they will vote, but the leaders have authorized to get
Speaker 8: them back on the job. Writers get a five percent
Speaker 8: increase in the first year. Studios will share viewer data
Speaker 8: for programs streaming with a potential of bonus payments, a
Speaker 8: minimum number of writers working a program, among other things.
Speaker 8: Now it's work on the AFTERSAG deal in California. I'm
Speaker 8: at Baxter Bloomberg Radio.
Speaker 2: All right, and thanks. We turn to the markets. Now
Speaker 2: we're watching shares of Amazon. They are up a quarter
Speaker 2: percent in early trading, and this follows yesterday's four percent
Speaker 2: drop after the Federal Trade Commission sued Amazon in a
Speaker 2: long anticipated anti trust case. FTC chair Lena Khan told
Speaker 2: Bloomberg the e commerce giant is using a range of
Speaker 2: tactics to hurt sellers and consumers.
Speaker 6: Ultimately, Amazon has pursued them to deprive actual and potential
Speaker 6: competitors of the ability to gain the scale and momentum
Speaker 6: needed to effectively compete online, and having achieved and protected
Speaker 6: its monopoly power, our complaint details how Amazon is now
Speaker 6: exploiting that monopoly power in ways that arm customers.
Speaker 2: Con stopped short of calling for Amazon to be broken up,
Speaker 2: but added if the regulator wins the suit, it would
Speaker 2: seek to restore competition in the market. Amazon says it
Speaker 2: will defend itself against the claims. For the full conversation
Speaker 2: with the FDC chair head to the Bloomberg Talks podcast feed.
Speaker 2: Download it wherever you get your podcasts.
Speaker 3: Another legal newscaren consulting firm, McKenzie's, agreed to pay two
Speaker 3: undred and thirty million dollars in its latest settlement of
Speaker 3: lawsuits blaming the company for its role advising opioid manufacturers.
Speaker 3: The posed accord with local governments and school districts would
Speaker 3: resolve allegations that McKenzie helped fuel the country's opioid epidemic
Speaker 3: by providing sales analysis and marketing advice to makers of
Speaker 3: highly addictive painkillers, including Purdue Pharma and Johnson and Johnson.
Speaker 2: Well In Asia, Nathan China has placed the billionaire chairman
Speaker 2: of Evergrand under effective house arrest, and Bloomberg's Brian Curtis
Speaker 2: has more. From Hong Kong.
Speaker 9: Sources say Way kai Yan was taken away by police
Speaker 9: and is being held at a designated location. It's not
Speaker 9: clear why he's under a so called residentials llance. That's
Speaker 9: a police action that falls short of arrest, and it
Speaker 9: also doesn't mean that Howay will eventually be charged with
Speaker 9: the crime. Still, it means that he's unable to leave
Speaker 9: the location, meet or communicate with others. Without approval. It's
Speaker 9: another sign that Evergrand has entered the criminal justice system.
Speaker 9: Other former executives have reportedly also been detained in On Kong.
Speaker 9: Brian Curtis, Bloomberg Radio.
Speaker 2: Sorry, Nathan, thanks in time now for a look at
Speaker 2: some of the other stories making news around the world.
Speaker 2: For that, we're joined by Bloomberg Tamy Morris Aamy Good morning.
Speaker 8: Good morning, Karen.
Speaker 4: Looters have ransacked a series of stores in the Center
Speaker 4: City section of Philadelphia. This is a lot of looting.
Speaker 4: Mass looting began shortly after a peaceful protest concluded near
Speaker 4: City Hall yesterday. First Deputy Commissioner Field Operations, John M.
Speaker 4: Stafford Junior explains.
Speaker 2: At this point in time, we know somewhere around fifteen
Speaker 2: to twenty arrests.
Speaker 10: At least two firearms have been recovered.
Speaker 5: This investigation is online.
Speaker 4: Demonstrators had gathered at City Hall earlier yesterday evening. They
Speaker 4: were protesting the dismissal of charges against a former Philadelphia
Speaker 4: police officer accused of shooting and killing a man named
Speaker 4: Eddie is a Razzi that was during a traffic stop.
Speaker 4: Now police say protests were peaceful and had nothing to
Speaker 4: do with the looting that followed, the Mexican government has
Speaker 4: begun negotiating with countries in Central and South America to
Speaker 4: try to stop people from trying to reach the US border.
Speaker 4: They'll start taking into custody those that are expelled at
Speaker 4: the international bridge connecting El Paso and Warez. In a statement,
Speaker 4: they say customs and border protection also offered to help.
Speaker 4: The stakes are expected to be higher for the second
Speaker 4: Republican presidential debate tonight. University of Miami's George Gonzales says
Speaker 4: there are seven candidates, including the front runner, former President
Speaker 4: Donald Trump, who calls the debates stupid times.
Speaker 10: Do they not need to share the stage with other candidates?
Speaker 3: But it would potentially be detrimental to him his candidate
Speaker 3: if he did share this.
Speaker 4: So Trump won't be be there. But the latest Real
Speaker 4: Clear Politics shows he is in the lead with fifty
Speaker 4: nine percent support, ahead of Governor Ron De Santis at
Speaker 4: sixteen percent and Nicki Haley at seven percent. All eyes
Speaker 4: are on DeSantis, though, who has to do well on
Speaker 4: tonight's debate stage to help rebuild his momentum. A growing
Speaker 4: number of Democrats are calling on New Jersey Senator Bob
Speaker 4: Menendez to step down after he was indicted on federal
Speaker 4: bribery charges. Fellow New Jersey Senator Corey Booker has called
Speaker 4: on Menendez to resign, saying there's a higher standard for
Speaker 4: public officials. Former House Speaker Nancy Pelosi tells MSNBC, Yes,
Speaker 4: Menendez should step down, and.
Speaker 7: It'll probably be a good idea if he did resign.
Speaker 4: Menendez criticized the Democrats calling for his resignation, saying they're
Speaker 4: judging him before all the facts are out. Global News
Speaker 4: twenty four hours a day, powered by more than twenty
Speaker 4: seven hundred journalists and analysts in more than one hundred
Speaker 4: twenty countries. I'm Amy Morris, and this is Bloomberg.
Speaker 2: Karen all right, Amy, thank you well. We bring you
Speaker 2: news throughout the day here on Bloomberg Radio. But now
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Speaker 2: Get informed on your schedule. You can listen and subscribe
Speaker 2: to Bloomberg News Now on the Bloomberg Business app, Bloomberg
Speaker 2: dot com, plus apples, Spotify, and anywhere else you get
Speaker 2: your podcasts. Time now for the Bloomberg Sports Update with
Speaker 2: John Stashaur John.
Speaker 10: Janner's an emotional night in Baltimore. Brooks Robinson was known
Speaker 10: as Mister Oriole. He passed away at the age of
Speaker 10: eighty six. An eighteen time All Star, a sixteen time
Speaker 10: goal Glove winner, and a first ballot Hall of Famer
Speaker 10: The Oriols, then host of the Nationalist, Gunner Henderson had
Speaker 10: a lead off home run. It was the only run
Speaker 10: of the game. Baltimore, behind the pitching of Kyle bradish won,
Speaker 10: wanded up being moving closer to winning the Al East.
Speaker 10: Tampa Bay did key pace, winning nine to seven at Boston.
Speaker 10: The Raids had a seven nothing leading that held on.
Speaker 10: Things got closer in the al Asis Texas at six
Speaker 10: game Winstreek came to an end, losing the Angels nine
Speaker 10: to three in Seattle. End of the four game losing
Speaker 10: streak six to two over Houston. Toronto, hoping for a wildcard,
Speaker 10: Blue Jays had only three hits lost to the Yankees
Speaker 10: two to nothing. The Cubs are in the hunt for
Speaker 10: a wildcard. They had a six to nothing leads six
Speaker 10: to eight in Atlanta, and then things fell apart and
Speaker 10: the three to.
Speaker 8: Two swung on a five ball out towards right center field.
Speaker 5: Suzuki over to his right with.
Speaker 2: Root he dropped it. He dropped the ball, two run score.
Speaker 8: Oh my, he was.
Speaker 5: Right there and Suzuki lost it. What a break for
Speaker 5: the Braves and they had the league.
Speaker 10: Saavan in Atlanta, Atlanta won seven to six. Will that
Speaker 10: cost the Cubs a playoff spot? Arizona beat the White
Speaker 10: Sox fifteen to four. Milwaukee clinched the NL Central lost
Speaker 10: to Saint Louis four to one, but they clinched with that.
Speaker 10: Cubs lost in the Phillies clinched the first wildcard. They
Speaker 10: beat the Pirates three to two in Tennys. John Stanshawer Bloomberg.
Speaker 7: Sports from coast to coast, from New York to San Francisco,
Speaker 7: Boston to Washington, DC, nationwide on Sirius, Exam, the Bloomberg
Speaker 7: Business App, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 7: Good morning. I'm Nathan Hager.
Speaker 3: Amazon is facing its most significant lawsuit in it's more
Speaker 3: than thirty years in business, and it is a career
Speaker 3: defining moment for Lena Kahn, the head of the Federal
Speaker 3: Trade Commission. Stopped by Bloomberg's Washington DC Bureau just hours
Speaker 3: after the case was filed. Speaking with Bloomberg's Peggy Collins,
Speaker 3: Lina Cohn said, businesses that want to sell their goods
Speaker 3: online are forced to pay Amazon's rates, including for advertising
Speaker 3: and logistics services.
Speaker 10: So listen in.
Speaker 3: It's a part of that conversation now.
Speaker 6: So, if this is a case about a set of
Speaker 6: unlawful tactics that Amazon has used to maintain its monopolies,
Speaker 6: we note in the complaint both a set of anti
Speaker 6: discounting tactics that Amazon uses to punish any seller or
Speaker 6: retailer that dares to discount, and ultimately these sets of
Speaker 6: tactics deter sellers and retailers from lowering prices, is off
Speaker 6: an entire dimension of price competition. The other set of
Speaker 6: tactics we note is a coercive scheme that Amazon uses
Speaker 6: to effectively require sellers use its fulfillment service, and this
Speaker 6: in turn ends up stunting the development of independent fulfillment
Speaker 6: providers and ultimately also deprives actual and potential rivals of scale.
Speaker 1: And that's really the.
Speaker 6: Core theme here. These are a set of tactics, but
Speaker 6: ultimately Amazon has pursued them to deprive actual and potential
Speaker 6: competitors of the ability to gain the scale and momentum
Speaker 6: needed to effectively compete online, and having achieved and protected
Speaker 6: its monopoly power. Our complaint details how Amazon is now
Speaker 6: exploiting that monopoly power in ways that harm customers, both
Speaker 6: the sellers, the tens of millions of American families that
Speaker 6: use Amazon to do their shopping, but also the sorry
Speaker 6: both the shoppers, but also the sellers, the hundreds of
Speaker 6: thousands and tens of thousands of sellers that use Amazon
Speaker 6: to access those shoppers. And it's done that through actively
Speaker 6: raising prices. Amazon takes close to one out of every
Speaker 6: two dollars from sellers that they use its platform. It's
Speaker 6: also degraded its service by adding a whole set of
Speaker 6: pay to play ads that make it more difficult for
Speaker 6: consumers to find what they're looking for and steers them
Speaker 6: to higher price products. So really encourage everybody to read
Speaker 6: the complaint. It details all of this conduct in great detail,
Speaker 6: and we're really looking forward to moving forward with it.
Speaker 11: So one of the things in the complaint is this
Speaker 11: phrase structural relief that you're seeking structural relief in this case,
Speaker 11: which implies a breakup.
Speaker 2: What would that look like.
Speaker 6: So at this stage, the complaint is really focused on
Speaker 6: the issue of liability. We lay out a scheme that
Speaker 6: we believe violates the US antitrust laws. What we note
Speaker 6: in the complaint is that these different aspects of amazon
Speaker 6: scheme have an aggregated effect. Harm is accumulating, there are
Speaker 6: feedback loops between the harms, and so the net exclusionary
Speaker 6: effect of Amazon's conduct is quite significant. Ultimately, we'll want
Speaker 6: to make sure that any remedy is halting the illegal conduct,
Speaker 6: preventing a recurrence, and ensuring that Amazon is not able
Speaker 6: to profit and benefit from its illegal behavior. So right
Speaker 6: now we're squarely focused on the question of liability, but
Speaker 6: when we get to the issue of remedy, those are
Speaker 6: going to be the principles. We'll be focused on, what.
Speaker 11: Do you think the company should be doing?
Speaker 2: Differently, so, the.
Speaker 6: Complaint lays out a set of tactics that we believe
Speaker 6: are illegal and that are illegally elevating and inflating prices
Speaker 6: for the American people. So at the very least, any
Speaker 6: relief would require that the company halt those tactics, But
Speaker 6: as I noted, effective relief also needs to be restoring
Speaker 6: competition to this market, which we'll be asking the judge
Speaker 6: to do as well.
Speaker 11: And when you think about the prospect for winning the case,
Speaker 11: how would things change for consumers and sellers if you do,
Speaker 11: in fact win.
Speaker 6: So this case is ultimately about competition and competition that
Speaker 6: has been foregone because of Amazon's unlawful tactics, as the
Speaker 6: complaint lays out, as a results of that, people are
Speaker 6: paying higher prices right Consumers are paying more than they
Speaker 6: otherwise would, small businesses are having to pay a fifty
Speaker 6: percent Amazon tax right now. And so ultimately the complaint
Speaker 6: is seeking to restore the lost promise of competition. Greater
Speaker 6: competition will mean lower prices, better quality, better selection, and
Speaker 6: greater innovation. And that's ultimately what this case is about.
Speaker 11: So Amazon will say that it's providing a platform that
Speaker 11: has a mix of products on it, but also when
Speaker 11: it comes to merchants on its platform, it's offering more
Speaker 11: and more services to them, shipping, delivery, advertising. In terms
Speaker 11: of why they're like the charges that they have, how
Speaker 11: do you respond to that?
Speaker 6: So the complaint really goes in some detail about the
Speaker 6: different ways that this you know, tax effectively has been
Speaker 6: increasing steadily and the way that that can be evidence
Speaker 6: of direct evidence of monopoly power. Interestingly, at various points,
Speaker 6: Amazon did experiment with giving sellers more leeway to use
Speaker 6: seller fulfilled Prime, but once Amazon recognized that that would
Speaker 6: threaten its monopoly power, I twitch that off. Even those
Speaker 6: sellers were effectively meeting the same standards that FBA does.
Speaker 6: So you know, the complaint really goes through all of
Speaker 6: this in great detail and lays out why we believe
Speaker 6: these are unlawful tactics that are hurting American people.
Speaker 2: Wow.
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