Coming up on Bloomberg this weekend, President Trump sends two strong

messages to Ukraine. One to its leader.

I think it's time for Ukraine to get a new president.

And another about the war. And I said to him, do what you want.

Don't hit refineries. He better damn well stop.

This morning, Republican lawmakers pushing back on his diesel deal with

Russia and a deadly attack on a Saudi airport.

At least 12 people are dead, including one American, and hundreds were injured

after the Iran backed Houthis hit Russia.

Will America join the Saudis in striking back?

We may even look at it. We move very quickly.

Plus a cockroach crackdown. Leaders of India's youth movement are

released after security forces shut down a major planned protest in the capital.

The group's message this morning. Cockroaches never die.

Welcome, Bloomberg this weekend coming to you live from Bloomberg's world

headquarters here in New York City. I'm David Gura.

I'm Christina Ruffini. We're here with Lisa Mateo.

It is Sunday, October 11th. Welcome to all our listeners and viewers

across all our various Bloomberg platforms on radio, TV, streaming,

bloomberg.com, and of course, the Bloomberg Business app.

And we've got a busy news day today kind of taking you around the world.

We're going from President Trump and those comments about Ukraine.

We're going to talk about Europe. The reaction there.

We're going to go to India to talk about the protest movements there as well this

morning. And then we're going to check in on, on

some earnings. And, and my favorite subject.

Bonds. Yes.

We all know well your favorite subject. Of course, getting up to speed on what's

happened in Saudi Arabia in recent hours as well.

Uh, before we get through, though, let's go to check the headlines with Lisa.

Mateo with Lisa? Yeah, let's start there.

David. It is the deadliest incident in

intensifying conflict with Yemen's, who is now Saudi Arabia, said 12 people were

killed, including an American and more than 300 injured, Saturday in the attack

on the Riyadh airport. President Donald Trump said he plans to

speak with Saudi Crown Prince Mohammed bin Salman, telling reporters what

happened in Saudi Arabia is not acceptable.

The president also said the U.S. may consider whether to join the

coalition fighting the Houthi rebels. It comes after three Saudi nationals

were killed in an attack on the airport on Thursday.

President Trump also speaking out against Ukraine President Volodymyr

Zelensky before heading to a rally in Tennessee yesterday.

Trump told reporters that Zelenskyy needs to stop attacking Russian oil

refineries, and said it may be time for the leader to step down.

Your country and you've had over a million people killed between the

two of them, over 2 million people killed.

That's a war that should have never started.

And I think it's time for Ukraine to get a new president.

Zelensky has been critical over President Trump's recent deal to buy

Russian diesel, warning that it could prolong the war.

Now, meanwhile, Russia has partially lifted its ban on diesel exports as part

of that deal, allowing 500,000 metric tonnes of fuel to reach international

markets. That's according to a Russian government

statement. The government did not say when the fuel

would be shipped. The U.S.

Central Command said that its jets disabled a cargo vessel in the Gulf of

Oman after the ship's crew ignored repeated warnings and tried to pass

through the naval blockade against Iran. The crew on the Panama flagship was not

alerted, residents in central Gaza returning to their homes to assess the

damage from Israeli strikes. One resident said at least ten homes

housing some 300 families were reduced to rubble.

The remnants of Hurricane Isaias is heading for the Mid-Atlantic and

northeast after the storm left four people dead across the southeast.

Heavy rains, powerful winds left behind a trail of damaged roofs and downed

power lines, leaving hundreds of thousands in the dark.

Florida Governor Ron DeSantis said more flooding could be on the way.

First, are you and I are going to crest in the next couple of days with all the

inundation. So I don't think that you can say, well,

there was flooding. It's receded.

We're fine. There's going to be new flooding that's

going to arise in different parts of the region.

Now, meanwhile, Hurricane Simon and post Tropical Storm Rachel continue to track

toward western Mexico. David and Christine, or at least thank

you very much. I'm going to go to the Middle East first

here this morning. We're fighting between Houthi rebels.

And Saudi Arabia has entered a dangerous new phase.

At least 12 people were killed on Saturday and hundreds more injured in an

attack on Saudi Arabia's main international airport in Riyadh.

That's right. The U.S.

State Department confirms an American citizen is among those killed.

This comes after another attack last week that was claimed by the Iranian

backed militant group in Yemen. Joining us now from Jerusalem, Bloomberg

Mideast reporter Dan Williams. Dan, as we look at the aftermath of this

attack and we see these really startling casualty numbers, one of the things that

isn't clear to me in any of the reports I've read is what exactly happened.

I know the Saudi government isn't big on always disclosing.

I'm assuming this was a rocket attack. Do we know that?

What are the details at this point? That's very well observed.

The extent of the casualties would suggest a significant payload.

That's generally what's carried aboard missiles.

And the Houthis have an impressive array of missiles, despite their self-evident

economic limitations and other fronts. The Houthis have also been very capable

when it comes to firing drones. But as I said, the damage here simply

doesn't appear to correspond to what we know those drones to be, unless it was a

multiple drone attack. Uh, the information coming out in

general from Saudi Arabia about such attacks, certainly this attack, not

least taking place over a weekend, has been fairly spare.

There may be an element of operational secrecy in that the Saudis may be trying

to keep under wraps the extent to which they can activate their own aerial

defenses, with varying degrees of success, or looking at, um, Centcom

partners to provide them with some kind of umbrella there.

So I would imagine just from the the extent of the damage, this is a missile

attack. But as you noted, the official details

coming out are spare for now. Then get us up to speed on the recent

history here. We've seen Saudi Arabia attacking Yemen,

and in recent days we've seen attacks in other parts of Saudi Arabia as well.

Uh, suffice to say, this has been heating up here over the last week.

Well, this is a war going back more than a decade.

It's worth remembering that MBS, the crown prince, actually held the Defense

ministry, the defense portfolio, for a while.

He cut his teeth there on what was a Saudi led campaign against the Houthi.

Now that abated. But the Iran war, the war against Iran

launched by the United States in Israel on February 28th, did reignite several

fronts. It's worth remembering that the Houthis,

while they have their own agenda, their own policies, their own interests are

seen often as an extension of Iranian interests, possibly an Iranian ally or

proxy, and would appear to what we're seeing here.

Given the large question mark of what's going on directly between the US and

Iran, specifically over choose which side might fall first, it would appear

that we're now seeing something of a proxy war emerge between the Houthis and

Saudi Arabia. This is also a blow not just to Saudi

Arabia in terms of loss of life and loss of treasure.

It's also blunt terms of loss of prestige.

The moment you hit a major gateway like that airport in Riyadh.

You make many people reconsider coming into the country.

And as reported today by Bloomberg, this month is meant to be a banner month for

Saudi Arabia in terms of projecting soft power economically.

Uh, it's meant just in the coming days to be hosting the World Petroleum

Congress. That is a major gathering going back

almost 100 years of all leaders. And only in the past hour we've heard

that BP, British Petroleum will be staying away from that event.

That's to be followed later in the month by the, um, uh, if I investment

conference, which is closely linked to MBS, is vision 2030.

His idea of encouraging in recent years foreign investment in Saudi Arabia that

he wants to reform extensively and away from its traditionalism, especially its

traditional reliance on fossil fuels that try and convey a who's who of bank

executives as well. Yeah, I think some of our colleagues

were planning to go as well. It's still early, but I was checking on

some, uh, this morning, uh, for a variety of reasons.

It seems like they are not attending at this point.

But, um, one of the big things is, is Mohammed bin Salman, the Saudi de facto

leader, had been asking President Trump for help earlier with the Who these and

the president was asked and he said a lot of things yesterday.

Um, but he was also asked about whether he was thinking about joining the Saudi

strike. Let me have you take a listen.

Decided to join the Saudi strike on the way back.

We're going to look at it. We just found out about the recent

attack. So we'll make a decision.

We move very quickly. Do we know what it is the Saudis are

wanting from the U.S.? I mean, obviously, the U.S.

has sold them billions of dollars worth of military hardware.

They have a capable air force. What capacity or abilities or

intelligence do they want from the U.S. that would help them in this battle?

Indeed, the allies and these are our allies.

The United States and Saudi Arabia are so tightly enmeshed for years that they

will be even more tightly meshed over the last seven months of fighting with

Iran. I suspect what MBS is calling for is

more active U.S. naval and Air Force intervention.

And I suspect what the President Trump is thinking of is the fact that only

last year, the United States carried out a seven week bombing campaign against

the Houthis, which succeeded in bringing about a cessation of the attacks on US

linked shipping. A limited aim that appeared to have been

achieved there, even though that would have been expensive for the United

States, and now it could be electorally expensive.

Given that we have the midterm elections coming up in the beginning of November.

And this President Trump is looking at potential damage to his Republican Party

and tried to distance, at least in the short term, the party, his

administration from the idea of new military adventurism.

I imagine saying to him, yes, well, Mr. President, you need to keep us, the

Saudis, stable. You need to keep myself, MBS and my rule

stable. And you proven only a year ago that

given limited campaign aims, you can deliver the goods.

Perhaps you can come in and do it again. In parallel, the Saudis have been with

some success, it would appear, uh, championing or spearheading a retaking

of a sea coastline in Yemen away from the

Houthis, by supporting Yemeni groups that have long been aligned with Saudi

Arabia on the ground, there has been some success.

It would appear the Houthis are now trying to outflank the Saudis by hitting

its, uh, it's exposed underbelly. As we noted at the outset with that

attack on the airport, and I imagine, uh, the appeals from Saudi Arabia to the

United States will be getting more and more forceful the deeper the crisis

around these, uh, domestic attacks or these inland attacks on Saudi Arabia.

Um, the more it evolves. And I can't let you go without asking

about the, the, of course, central conflict here that between the United

States and Iran. And we're in this kind of stage here the

weeks leading up to the election, the president president's given us mixed

messages to, to be sure, just about whether or not he's considering

additional strikes at this moment in time and would wait until those

elections take place at the beginning of, of November.

I wanted to ask you about some reporting that our colleagues did, led by Jerry

Doyle in London, focusing on Iran's arsenal, what we know of it, and indeed

how Iran might be taking advantage of this pause in hostilities to yes, take

stock of what they have, but also to build more munitions.

Maybe just get us up to speed on what's happening in the conflict now and what

we know of what's happening in the conflict.

Well, as I said, Bloomberg put out a very interesting story about Iranian

capabilities. So interesting, in fact, that even

Israeli media, who have their own sources about the region were, um,

quoting Bloomberg regularly as of last night when it first hit the wire.

The idea being that while major operations have ceased between Iran and

the United States, effectively this is something of a dynamic and violent

deadlock over the Strait of Hormuz. The Iranians have been using this

relative respite to try and rebuild their missile capabilities.

Now, even according to the Israelis, when um, uh, Israeli actions against

Iran ceased as part of the cease fire announced a few months ago, Israel

assessed that the Iranians still had over a thousand missiles capable of

reaching Israel. That's commonly known as an intermediate

range missile. That really puts the entire gulf in

Iranian, in Iran's range and potentially parts of southern Europe as well.

The Iranians, it appears, given that there is really no prospect of

reconciliation or peace here, at least with the current regime in place.

I've been using the time to try to build up those capabilities.

It's worth remembering Enron is a very big country, some 2.5 times the size of

Texas. Plenty of places where industry, heavy

industry, military industry can keep going or can be resurrected in short

order. And the Iranian regime, I think,

legitimately is seeing itself as fighting for its survival.

So despite the massive economic distress being experienced by Iran, given

sanctions, given the war, given the American success in closing down Iranian

traffic in the Strait of Hormuz, they would appear to be, uh, diverting as

much of their funds and their talents and their time is possible.

Into a missile program. Missile program, which we've learnt in

recent years, has actually had a strategic value to the Iranians, which I

think is comparable to the bomb, the atomic bomb, which much of the world

believes. The Iranians have long wanted.

The wrong is denied this. If you have enough missiles in the

hundreds or the thousands that you can shower your neighbors, including Israel,

with them at very short notice, overwhelming and defenses by sheer

quantity, and turning first world countries into developing countries.

Given the blows you can strike to their economy, potentially with a full deluge

of such missiles, that really, really does put you in a strong position.

It's one of the reasons Israel struck when it did in recent years to try to

diminish that missile capacity, and it would appear.

That's also why the Iranians are now working as hard as they can to build up

that missile capacity for when it's next needed.

What does all this mean for speaking of elections?

You have an election coming up there in Israel.

Netanyahu is trying to keep his job. He is you know, there is this sentiment

not just here in the US, but I think in the Middle East as well, that he dragged

America into this war, which at this point has diminishing returns and has

made life harder for a lot of people. What is the sentiment inside Israel

about this conflict? I know Netanyahu has made the argument

that the U.S. and Israel need to finish the job.

It looks like that everything is on hold at the moment.

Is that a liability for him going into the election, or is he still making that

argument as to why he needs to keep his his job?

I don't think it's a liability in electoral terms, as you know.

So this was very unpopular in the United States.

That's not the case in Israel. Every indication is that while these

Israelis are very much fatigued by this war, uh, there the resources have been

strained. Uh, just to clarify, things will just

means illustration. The sheer number of soldiers killed in

this war lost by Israel. Um, if you factor in the difference in

population size exceeds by some four and a half times the whole number of U.S.

soldiers lost in the entirety of the Afghanistan campaign and the Iraq

campaign. That's 32 years of cumulative fighting.

Imagine condensing that into two years, which is the length of major operations

that Israel has had in this war. The fact is, Israelis are still willing

to sacrifice. It's also a conscript military.

Most of those losses were people who did not want to pursue soldiery as a

profession, but turned up because their country called them in to turn up and

serve it. So these rallies are still willing to

fight this war. They see it as existential.

They see Iran as topping the pyramid of enemies, the bottom rungs being Hamas in

the Gaza Strip, Hezbollah in Lebanon. And there is still a will there to

continue fighting, however, should have will be launched by Israel or relaunched

by Israel in the two and a half weeks before Israel's election, the first

thing that would likely happen would be that the election would be postponed for

obvious logistical reasons, Israel could expect to be hit with some of those

hundreds, perhaps more, missiles remaining in Iranian hands.

Many of Netanyahu, the prime minister, many of his opponents would perhaps

suspect there was an ulterior motive in launching that war at this time.

Given that his standing in the polls has not been especially promising for his

efforts to, uh, keep power to extend his already record term.

So the timing that would be problematic. And obviously it would all have to be

coordinated with the United States. Even if Israel was to go it alone

without the US, Iran would almost certainly attack US interests in the

Gulf. So the idea of Israel going it alone is,

I think, pretty much a stretch. All right.

Dan Williams, our Middle East reporter joining us from Jerusalem.

Thank you so much, as always. Appreciate it.

Been coming up in our eight o'clock hour, we're going to speak with former

U.S. Ambassador to Ukraine Bill Taylor, along

with former Middle East, a white House Middle East advisor, Brett McGurk.

Both of them are going to join us here on Bloomberg this weekend in that eight

o'clock, nine o'clock hours. That's right.

We want to keep pivoting around the world.

Now we're going to go to India, where parts of New Delhi remain under tight

security for a second straight day. As protesters pressed ahead with their

demands for the resignation of India's top election official over a contentious

revision of voter voter rolls. Excuse me?

Thousands of protesters detained Saturday, according to media reports,

including leaders of the youth pressure group Cockroach Janta Party.

Those protesters were released Saturday evening while a court ordered the

release of three CGP leader CGP Lipsey JP leaders on Sunday after they appeared

before a magistrate. Joining us now from more is Bloomberg

senior reporter Dan Stream. Dan, just describe the scene in the

field, the atmosphere in New Delhi right now.

Again, the reports from yesterday's protests, uh, rather extraordinary.

Yes, the reports of the protests, but also the crackdown as well.

Maybe you can put that into some context just how wide they were and your

assessment of how many people were were rounded up and arrested.

So to your question, I mean, the mood in Delhi right now is quite tense.

I mean, um, for the entire weekend, really, the city has been under some

pretty, uh, intense security. Effectively, a lockdown is underway.

You've got, uh, police checkpoints all through the sort of center of the city

where, uh, the government offices all sit, uh, major public buildings all shut

down. Um, and, uh, a very heavy police

presence all up and down, uh, much of the city.

So, um, you know, what's happened is there have been massive protests that

were planned in New Delhi this weekend. Uh, those have essentially been

disrupted by this, uh, quite, uh, intense police lockdown.

Um, as you said. I mean, you know, uh, reports are

showing thousands of people have been detained.

I mean, I think that that, you know, rings broadly true.

Uh, large numbers of marches were planned, and many of those people, did,

you know, end up kind of going in, making their way to at least towards

some of those protest sites? But police were, uh, quite ready there

on hand to, uh, to make quite widespread apprehensions.

And so what you had the scenes of buses just basically carrying away large

numbers of protesters, uh, kind of just as they were showing up and essentially

preventing a lot of these demonstrations from, uh, from even sort of gelling.

That hasn't stopped, uh, the movement here.

Uh, what you have is, uh, you know, the leadership sort of vowing to press on

through the coming week whether these, um, lockdowns can really continue into

the week. It's really an open question.

Uh, you know, these lockdowns took place in the weekend.

The city was, uh, sort of in a, in weekend mode.

Uh, you know, people are going to going back to work in the coming days and, and

whether or not, you know, the kind of widespread shutdowns that we saw can

continue. Uh, you know, it was really an open

question, and it was really quite intense, uh, because you saw not only

road closures, uh, but massive, uh, metro station shutdowns.

Dozens of metro stations throughout the city were shut down.

Uh, and state borders were closed going into Delhi as well.

So really massive disruptions all through the city, through this weekend.

Ten can you kind of remind us where we got the party for?

I'm assuming that this is a riff on on Modi's BJP party, as they were

originally the cockroach movement. This was a student movement.

It started with leaked test results. How did we get here?

Yeah. That's right.

I mean, the movement. You're absolutely right.

It's a riff on the on Modi's BJP. Uh, the JP, the Cockroach Janta Party is

the name that they're going by it. It's the name itself is a bit of a joke.

It's sort of a play on some comments, uh, several months ago, made by the

Supreme Court, uh, justice, uh, the chief justice of the Supreme Court of

India, we sort of in a, in a quite dismissive way, in a way that was seen

as dismissive at the time, uh, had kind of written off, uh, young jobless people

in India who sort of caused trouble and, and referred to them as cockroaches.

And he says that those remarks were taken out of context and misinterpreted.

Um, but you What ended up happening was you basically had a whole bunch of young

people come together and sort of push back under the banner of this cockroach.

They tried to sort of take it on as their own and, and really channel what

has been, um, an ongoing issue in India, which is a sort of sense of, of youth

disenfranchisement, of youth joblessness, a feeling that young people

are, um, you know, not able to find the opportunities that they need are not

being served by the country's education system and are being, uh, written off by

the country's leadership. Um, and that's really coalesced in this

in this tremendous way over an extremely short period of time.

I mean, this movement emerged just a few months ago.

Um, its leader, obviously, Deepika, who, as you said, was briefly detained and is

now released. Uh, he was a student in the US just a

few months ago, uh, or had just finished his studies in the US just a few months

ago and, uh, sort of coined this, this idea of a cockroach.

You know, the cockroach party and has now come to India and has become a sort

of a folk leader of this movement. Um, so so that's the origin of the

movement. And it has sort of endured for these

last couple of months in a way that I think has surprised a lot of political

observers in India. Um, they got an initial victory, uh,

just a couple of months ago with the resignation of the education minister

that was linked to, uh, a scandal in, uh, national testing in India.

Uh, that was the sort of initial fuel for this movement.

Now they're coming out again over this voter roll issue and are demanding the

resignation of the chief election commissioner in India.

So whether they can, you know, push through on the second demand,

essentially getting a second, uh, a second resignation, uh, um, you know,

coming out of this movement, uh, is really what they're fighting for.

You know, this week, they don't ask you less than just about what this means for

for India's economy. And this, of course, will be front and

center. Bloomberg has a big conference this

week. The new Economy Forum taking place in

New Delhi is all of this. This plays out.

And we saw the Indian Central Bank taking steps here to support the rupee,

which has been been weakening. Um, I'm curious for what the economic

ramifications are indeed. I mean, I suspect that will be the

subject of much discussion at this, at this conference that kicks off in a

couple of days. Yeah.

I mean, huge conference coming up in Delhi, uh, hosted by Bloomberg.

Uh, Prime Minister Modi is actually the keynote speaker.

He's set to address the, uh, the gathering on Tuesday.

Uh, no doubt, you know, this is happening quite unexpectedly in the

shadow of this of this protest movement, uh, will undoubtedly be a topic of

discussion, uh, among the many CEOs, world leaders, uh, you know, central

bank leaders that are that are all coming to India.

Uh, no doubt, uh, a central topic in the conversation was set was said to be the

Indian economy. And, um, you know, there's plenty of

fodder just from this weekend, given that much of the youth anger that has

driven a lot of people out into the streets this weekend is a sense of, you

know, that the Indian economy isn't working for young people, isn't working

for the common man. And so, you know, undoubtedly there will

be a lot of conversation around that. And, uh, you know, the extent to which,

uh, some of India's leaders can address that at the meeting will be, uh, very

interesting to watch for sure. That's from thank you very much.

Reporter in New Delhi joining us to cover all of this news on the SAT on

this Sunday morning. Excuse me.

Thank you very much to really appreciate it.

We've had some excellent dance. Yes.

History. That's good.

That's getting us up to speed. All right.

Be sure to watch and listen to Bloomberg's coverage of the 20 2026 New

Economy Forum from New Delhi beginning on Tuesday.

Find that across our platforms, certainly at Bloomberg.com.

And there's another big event happening this week about a thousand miles east of

India. That's world financial leaders,

including Fed Chair Kevin Warsh, are gathering in Bangkok for the annual IMF

meeting. Bloomberg Surveillance Co-host Lisa

Abramovich will be there too, and we spoke to her a bit earlier about what to

expect. There's a number of really important

issues right now. Number one, the competition per capita

clearly is very much front and centre, especially for the developing countries

that are trying to keep up. It's not just good enough to have robust

economies. They need to protect their economies

from artificial intelligence from becoming obsolete.

So for example, if they're doing all of the call centres, they need to diversify

to have a broader base of talent and to upgrade their talent so that they're not

left behind or rendered obsolete by some of the technology.

So there's a question of how to access that capital and at what cost.

There's oil prices that are incredibly important.

And I would imagine, especially in Asia, totally in Asia.

That's going to be a really, uh, prime discussion, especially for some of the

exporting nations, Thailand, among them, uh, that are looking to shipping and

other types of, uh, ways of transporting their goods.

That's all pressuring a lot of these nations.

At the same time, this is the uncomfortable discussion that we've been

having for it feels like forever, which is that the economy has been

unbelievably resilient in the face of all of these shocks and potential

fundamental change. So how resilient is it?

Where are the cracks? How do you protect yourself against some

sort of downturn now before there is that potential downturn?

These are the parts of the discussion that we're going to be having.

We had Unga here. What I mean, time is irrelevant these

days. But like 2 or 3 weeks ago somewhere in

there and we've been talking a lot about kind of the degradation of

multilateralism, right? We've seen the U.S.

pull back from a lot of these institutions.

We've seen other countries kind of pulling back as well.

How is that working with IMF? Are people I mean, Kevin is attending

the summit. The U.S.

seems to still be involved, but have you seen any kind of U.S.

policy shift with regard to the agency? You know, if anything, in some ways the

unity has been more integrated, and arguably The U.S.

is the biggest funder of the IMF. Without the United States, it's

questionable. The IMF international half.

So it's not as though the U.S. is moving away from the IMF.

A real question here is how international can an agency be when

there is one clear outlier and that is China, right.

And so, especially in the shadows of China and Thailand, that's going to be a

big question. China has been somewhat, uh, on the

peripheries here, has been engaged in their own kind of lending program.

So yeah. Exactly.

How do you how do you navigate that and how do you represent an international

sphere at a time of fractured alliances? And ultimately, that's something that

the IMF talks about. How do you deal with a multilateral

world? How does that complicate the resilience

patterns and sort of the supply chains that people have?

These are all questions that people have as far as the U.S.

involvement, the U.S. still has involvement in the IMF.

The U.S. clearly has a presence there.

International bankers are going to be there.

And as Treasury Secretary Scott Besson keeps saying, it's a global bond market.

Clearly it matters a lot what happens Japan.

It matters a lot. What happens in China?

It matters a lot. What happens in Thailand to the

borrowing costs here in the United States as well.

So that's one of the reasons why I think there is a real focus on what people say

there. Who are you expecting to hear from when

you're listening to what people are saying?

Who are you really looking forward to hearing from, and who are you going to

be talking to? Well, the star discussion probably is

going to be Kevin Warsh and Kristalina Georgieva, the fed chair and the

managing director of the IMF. That's going to be on Thursday morning,

local time. Why is the evening here a real question

about what Kevin Warsh says about the CPI report, the inflation report?

I'm looking forward personally to speaking with a number of CEOs of

different banks, including Commerzbank and a number of others.

This is part of the International Institute of Finance, which is having

meetings at the same time, as long as the world Bank and the French finance

minister is going to be there, and a bunch of the European finance ministers

very curious to hear how they discuss the situation in France and potential

contagion with yields that have been climbing for quite considerably.

That's right. And just the cost of I know a lot of

Europeans are looking at how to invest in defense and how to protect themselves

in a world where they don't want to say out loud that NATO may not be as

reliable as it once was. Or at least there are questions about

NATO at the moment and how to protect yourself with energy independence.

Given the fact that a lot of these issues have stemmed from frailties or

fragility that have been exposed by the fact that oil prices are rising much

faster in Europe due to the war in Ukraine and due to the Middle East, and

what's happening with the Strait of Hormuz.

I thanks Elisa for that. Let's get a check on top stories now

with Lisa Mateo. Lisa, let's go to a shooting at a home

in Erie, Pennsylvania. It has left nine people dead, including

a pregnant woman and children. Police say the 45 year old suspect took

his own life after the killing, and was related to seven of the victims.

Erie Mary Daria del Venecia delivered a message to the community.

To the families. To our neighbors.

To our friends. On the east side.

And to everyone who is hurting today. We are here for you.

Not just today, but in the difficult days and weeks ahead.

We'll continue as a community to show up, to listen and to care for one

another. Investigators are still trying to

determine a motive for that shooting. Christa Pike is out of the hospital and

back at the women's prison where she was housed for 30 years.

Pike served tennis, survived Tennessee's attempt to execute her by lethal

injection for the 1995 beating and stabbing death of a classmate.

Authorities have not said what went wrong in that execution.

And the Justice Department is investigating.

CNN, NBC, CBS, Fox and ABC. After they stopped providing full

coverage of President Donald Trump's appearances, the networks made the move

after the white House barred several news organizations from access.

The probe will look into whether they violated antitrust laws.

Cristina for that update also excellently says on the show today.

Good, Lisa. Dan we always try to do it in groups.

All right. Coming up here, news from the Vatican

this morning about the health of Pope Leo, plus insight and what it's like to

cover the Pope's every move from the longtime head of the New York Times, its

Rome bureau that's coming up uncovered this weekend.

Thank you for joining us live on Bloomberg this week.

And I'm Lisa Mateo. Let's update you on today's top stories.

Another tech executive is calling for the slowing of advanced AI.

In a post on Microsoft CEO Satya Nadella, he said companies should treat

powerful AI models as potential insider threats and create an emergency brake

system to prevent ejected models from going rogue.

And it comes as anthropic and OpenAI revealed how their AI models acted in

unintended ways. Nvidia is looking to strengthen its ties

with a key developer of open weight models, sources tell Bloomberg.

The company is in talks to boost its investment in reflection AI, or offer

the startup some computing power in sports.

The PGA tour continues with a final day at the Bay Current Classic at the

Yokohama Country Club in Japan. Topping the leaderboard is Michael

Brennan at 16 under par, followed by Keith Mitchell and Jacob Bridgman at 15

under par. Brian Harman is at 13 under.

In the MLB playoffs, the Cleveland Guardians advance to the ALCS after

defeating the Chicago White Sox two to nothing in game five at home.

The Guardians will move on to challenge the Tampa Bay rays tomorrow night.

And tonight, actually, the Los Angeles Dodgers, they take on the Milwaukee

Brewers. Game one of the NLCS.

A lot of baseball action. And the Portuguese Football Federation.

They have suspended Cristiano Ronaldo for walking out on the team.

Now the soccer star, he left the Portugal camp during the international

window after a dispute with Newt coach over his lack of playing time.

The case has been referred to the organisation's disciplinary

investigation committee. David and Kristen.

It was an interesting story. I don't know if you guys watched Ted

Lasso, but it was giving me like ten minutes and giving Jamie Tartt.

There's like a whole storyline about the player who doesn't think he's getting

enough time. It's like, oh, you're missing out.

David. It's like, you think that's a good one?

All right, all right, movie night. Watch this show.

No, thanks. You got it.

All right. This morning, we've learned that Pope

Leo plans to undergo surgery to remove a nodule on his lung.

Now, no other details were revealed so far ahead of his upcoming trip to South

America next month. Jason Horowitz spent much of his time as

Rome bureau chief for The New York Times, reporting on the Vatican and Pope

Francis in his final months in that job. In his new book, titled The Italian Job,

Horowitz reflects on his career of witnessing historic changes in politics

and, yes, the papacy. The Pope sort of had a great tradition

of ruining my vacations. Like, he would either say something very

important or unfortunately, his health would dip.

Something would always happen when I was on vacation.

So I was constantly coming back from America, from wherever I was.

Uh, so in this time, I was up in, um, Maremma, which is on the Tuscan coast.

It's very beautiful. Yeah, I know, I know, I know had like,

uh, and, um, and I actually sounds very crazy, but it's true.

I dreamt that the Pope had died. Right?

And I woke up in the middle of the night, and I said, oh, my God, I just

dreamt that the Pope had died. And my wife, uh, turned to me and she

said, no, it's just that you're always thinking about the pope, right?

And then again, in my Defense Department died.

Right. So we were on some wavelength, the two

of us. Um, anyway, so rushed back to, uh, Rome

and put it on your daughter's laptop or on my daughter's laptop.

Uh, and I was in the front seat. She was in the back with the dog.

My my son. Some other people were in that car.

It was, uh, it was a bit of a clown car. Me extremely stressed out in the front,

but, um. And then began on very, very, very

hectic, important couple of weeks. Yeah.

Let's talk a bit about that. So this is a, you know, memoir treatment

of your time there. And you're learning about Italian

history and art and culture. Talk about the importance the Vatican

plays in life in Rome today, and the degree to which you, a guy from Fresh

Meadows, Queens, really had to bone up on a lot of this Catholic before.

Yeah, yeah, yeah. I mean, so, you know, the Catholic, uh,

the Catholic Church sort of imbues everything in Italy, right?

I mean, it ran the place right there. The Papal States, the middle of the

country was under the Pope. He was the king.

Uh, and you still see it in many, many different ways.

One way that I sort of ran into it is, um, authority.

So, uh, everything is sort of negotiable, right?

And, uh, so I love my people. So there's positives and negatives to

this, right? But like, um, you know, even your

traffic cop. Right?

If, if you're parking very badly and, uh, my wife is an infamously bad parker,

and I would say to her a wonderful Parker, but in bad places.

Oh, God. And, um, and I would say to her, you

know, this is not a spot. And there's like a, there's a, there's

a, there's a traffic cop coming over and she said he understands.

And in fact, there was like a negotiation, like there's nowhere else

to go. And he'd say, okay.

And that's very, very Catholic in a way. Right.

It's very human. It's like everything, you know, in a

negative way. You end up with bribery and, you know,

usury, you know, but in the positive way.

You can sort of, um, you know, if there are extenuating circumstances, they

matter. Right?

And so that's one way that I constantly came into contact with it.

But on the flip side, Italians are also extremely anti-authoritarian.

And I think that also comes from the Vatican.

I think that they don't they didn't like having the Vatican telling them what to

do for a long time. And so Italy as a country is born in

response to the Vatican. It doesn't want the Vatican.

Yeah. So everything you talk to you about what

it's like to cover a conclave because like watching it from the outside, it

reminded me of trying to cover things we cover, like negotiations with Iran or

like, you know, closed door meetings at a G7.

Do you get sources? Do people leak?

How do you talk? Do people around the Cardinals talk like

as a reporter, how do you go about this? So, uh, cardinals do spill, okay.

You're not supposed to. Yeah, they're supposed to be

excommunicated if they do, but sometimes they do, uh, during a conclave.

Um, so. But, you know, I was there a very long

time, right? Uh, over.

I first moved to Rome in the year 2000, essentially, and came back to America.

But over 25 years, I was reporting on on Rome and on Italy and on the church.

And so after all those years, you do have sources and you do have people who

will talk to you. Um, and really, the what you're building

this all up for is when it matters most. And that's a conclave.

And so they, you know, they do help you understand what's happening.

They can't tell you everything, but you can sort of see the direction things are

going with their help. And then sometimes, you know, it's also

just sort of, um, shoe leather reporting.

Right? You just you don't know what's going on.

And so you hit the square, and you hope to catch some of them coming out, and

some of them, you actually don't know who they are, because the College of

Cardinals is pretty big, and a lot of these guys look the same.

And so what I learned over my time there is that when you don't know who's who it

is that you're talking to, you just you lead with eminence, right, Your

Eminence. Right.

And then you look in, uh, sort of Facebook right here talking to you, very

similar to me on the Hill. Uh, Congressman.

Yes. Um, can you talk about the way that the

political terrain shifted over the time that you were there?

She said, there for a quarter century begins under Silvio Berlusconi.

We now have Giorgia meloni in power. What politically does Italy look like?

How much is it changed since you first got there as an undergrad?

Yeah. So Italy has changed a lot.

And so my what I kind of took away from Italy after all my time there when it

comes to politics, is that it's a laboratory.

And it's it's sort of a paradox because Italy doesn't really change much in its

sort of structure. Um, you know, the important things for

Italians are that your inheritance laws are the same.

Your real estate isn't touched, right? They're very conservative.

But that means that they will let anybody try anything.

Right? And so they're always looking for

something new. And so if you look over the 25 years,

you go from Berlusconi, uh, who was, you know, the first mogul, media mogul, uh,

politician. And then you go to, uh, left, you know,

far, far left. You go to populists who are born on the

internet. Right.

All these sort of new things. Um, and then now, uh, Giorgia meloni,

who is represents really the return of, um, you know, the post fascists who were

born after, uh, World War two were kept out.

And she's the first one who's been allowed back in right now.

And that is not saying that Giorgia meloni is a fascist or anything, but she

comes out of that tradition. So you see a lot when you're in Italy,

and it sort of teaches you what's coming elsewhere.

That's what that's my sort of main takeaway from it.

Um, but yeah, the place changed. Uh, the politicians changed a lot.

The place may be still the same. This is a wonderful cultural history of

your time there. It's also something that I think would

strike a lot of envy. And probably 100 people that could get

from this newsroom that you were able to move there after college.

The dollar was strong, that buffet, all of this.

But you were able to make a go of it in the way that you did.

And, you know, you end up at the New York Times on the heels of that.

What do you say to young journalists today who look at your career and say,

that's it? I'd love to be able to do that?

Yeah, I mean, know okay. So obviously the pen wasn't easy.

It wasn't a straight shot. I know it was not in the past have

totally changed. But I the one thing I feel very strongly

about in journalism is to go. Right.

So whether it be a story, right, if you have the opportunity to go to do it, do

it right, and there's not there's nothing that comes close to being on the

ground. All right.

And so I took it. I had, you know, I moved to Italy.

I had no job, I had nothing. I had, you know, I didn't have a ton of

money. But I went and, you know, I got lucky.

Things broke my way. But things would not have broken my way

if I didn't go. Jason Horowitz moving on to a new

hardship post. He's in Madrid now for the New York

Times. Great to speak with him.

And it's a wonderful book. It's really great.

It's a great title and full of fun anecdotes.

We really enjoyed our time. All right.

Coming up here. Lisa Mateo, back with us as we go to new

stories that you may have missed here over the course of the week.

You're lucky you got there first. I got there.

All right. Stay with us.

Back to Bloomberg this weekend. Or bet dubs as we all like to call it

around here. I'm Christina Ruffini.

You got my pillow on your side. Yeah, well, I don't know.

Why am I like this? No.

Good news for you.

Sorry for something. Something didn't feel right.

Or coffee. Something didn't feel right.

In addition to redecorating. At least it would say it was with us.

Uh, with some of the stories we might have missed this week.

All right, I've got. We've got our coffee.

You're ready. You're ready.

Right. Okay.

You're ready for it. Um, question for you guys.

Do you remember your first internship and, like, how much you got paid?

What? I got paid $0.

Zero. So you got to.

I got $13 an hour, and I was limited to 20 hours a week, so I worked 40, but

they would only pay me for 20. Oh, I got ten.

Okay, David, you lost out. Um, here's the story from the Wall

Street Journal. The race is already on for next summer's

$50,000 internship. I remember when this was happening in

college. I filled 50,000 well, young kids going

into finance for the finance, just to make sure you say yes.

You were not part of that. Where are you?

Okay, so look at me now because I knew no finance brothers in college, so, uh,

they're already going, but it's. Yes, it's $50,000 for ten week program.

Okay, so that's what they're getting paid.

But the competition is tough because they they're competing for base salaries

when they graduate for like $300,000 when they graduate.

So this is what they're competing for. Guys, the acceptance rate for these

internships is less than 1%. As a kid growing up, it's like it's like

smaller. It's easier to get into Harvard.

Yes. That's what they say.

Exactly what they say. Some lie about them.

They say that they're. You know, I'm a junior.

Really? They're like a sophomore.

Because if you're a junior, that's what they're they're looking for to get into

there. But a lot of firms are starting early

like they're already looking now for next summer.

So it's a big process. It's like they go out and they're

scoping not just finance people, but they're looking at like the chess club

and poker tournaments, people who have a different mentality.

Once they want that, they want the client.

Yes, they want the quants. Quantitative.

Quantitative. No.

Yes. So that's what they're looking for.

They wanted the they weren't the student paper.

And you know what? I think for me that's where I was

literally this year for TCU, the daily paper I was at the Daily Targum at

Rutgers. Yeah.

Right. Well and now we're on here.

Not. Not making fine.

Here we go. All right, so if that didn't make you

feel bad enough, here's another one for you from interns will go to the Goldman

Sachs top executives. Okay.

What are you doing? I know it's making you feel great on a

on a Sunday. Uh, this from Bloomberg.

Goldman. Special bonus for top brass to exceed

$500 million per million. Among how many you say talking about 20

oh, 20. Okay, so

this is split between them out of 20 people.

Yes. Okay.

It's just split my power bill into payment.

So I've got the quant over here going to do the math here.

500 million divided by 20. Come on.

What are we looking at there I don't know, what do you math, but it's

not split evenly, okay. Because you have, you know, David

Solomon could get 100 million, you know. So it's not said how it's split.

It's not set. If that is the definite number at the

end, it still has, you know, a few more weeks to go with this.

But you know, a lot of companies started doing this back in 2021.

Goldman started doing it. But what they did different is they

started awarding more employees instead of just like the top two executives.

Um, so that's what they started taking different share of the business.

You know, you have to retain your employees now.

It's more competitive that kind of interesting because that firm, of

course, was a partnership for such a long period of time and went public.

So there's still this adjustment, you know, more than ten years hence figuring

out that, um, compensation structure, which I

unfamiliar to me. It is it's it's quite a.

I've never worked anywhere with a bonus before.

Well, so, you know, welcome to corporate life.

I'm pretty knock on wood waiting for me, so I'll let you all know.

Family Christmas presents will be dependent on this, so please, um, I'm

doing my best boss as I'm doing with that tool.

There you go. We'll split it.

We'll split it up. Um, you love a good book, right?

I see, I know, I love a good book. You in the summer, right.

You read on the beach or. Here we go.

Okay, but I could read serious things, but.

Yeah, he does. He reads on the beach when he goes, I

know, I know, but but what if that book has been sitting on a shelf for a very

long time, and you pick it up and you open the pages and there are some little

critters kind of moving around there. Okay.

This is from the New York Times. Should you put your books in the

freezer? Okay, so we're talking about silverfish

book lice. More so gross.

They are all in the bathroom, Wolf. They're a tough one.

Uh, but. Yeah,

but it's a problem with your books because they love to kind of go inside

the pages and kind of, you know, get in there.

But if you put the book in a plastic sealed bag in the freezer, you keep it

in there for, let's say, three days. Six days.

Okay. I think this is your space, right?

She's got a mini fridge. I've got extra freezers.

I have space for you. I go to Costco.

All right. I'll shoot my books out to the Mateo

household. But it's going to.

It's going to prevent, um, you know, from the from the little insects coming

in. They say, don't put in your garage.

Don't put the books in your a jam if you go to, like, a secondhand store.

Give a little sniff before you take it. Like the old book smell, though I do buy

a lot of like, yeah, but I find, like very old books.

Well, do I need to be checking? Really?

They can really ruin a rare book, but I can't.

But I can't put that in a freezer either.

The loser will know if you zip it, you can zip it in the in the

freezer bag. You can come over and supervise my book.

Freezing. All right.

I'm nervous about this. I will help you.

Like you might be like somebody might open your freezer.

They might think you're a little off if they like, it's.

Well, you know, it could explain a couple things.

All right, uh, let's go to to the.

Yeah. I don't think that's is going to tell

the my mom there's so many larger red flags.

But anyway continually said, uh, remember the good old days used to ride

your bike as a kid going around the suburbs?

Um, well, now kids are zooming off at speeds of up to 25mph.

Because of those. Yes.

You and the electric bikes, the e-bikes. Okay, so this one, uh, this one is, uh,

this title is hordes of teens on e-bikes for suburbs to rewrite the road rules.

So basically, these bikes, you know, they're responsible for a ton more

emergency room visits, a lot of deaths. Um, the government officials are kind of

cracking down. So in new Jersey, did you know it has

the toughest law? It bans anyone from under the age of 15

from using those bikes. Yeah.

So probably yeah, I see the kids all the time zipping around.

No helmets, just going willy nilly over to you.

But you see this scar? This scar, this scar, these are all from

going too fast on a bike and easily by those handlebars.

Now, imagine if you were going like, that's what I mean.

Yeah, yeah. It's crazy.

So and they kind of e-bikes in a way I'm worried about you have all these bike

accidents. We're coming up on 8 a.m.

in New York the next hour of Bloomberg this weekend.

Not on a bike starts right now.

Coming up on Bloomberg this weekend, President Trump sends two strong

messages to Ukraine. One to its leader.

I think it's time for Ukraine to get a new president.

And another about the war. And I said to him, do what you want.

Don't hit refinery. He better damn well stop.

This morning, Republican lawmakers pushing back on his diesel deal with

Russia and a deadly attack on a Saudi airport.

At least 12 people are dead, including one American, and hundreds are injured.

Will America join the Saudis in striking back?

Back. We're going to look at it.

We we move very quickly. Plus, the economy in focus this week

with key inflation data, retail sales and big bank earnings.

And Fed Chair Kevin Warsh on the world stage ahead of another crucial decision

on interest rates.

Welcome back to Bloomberg this weekend. It is 8:00 am here at our world

headquarters in New York. I'm Christina Ruffini.

I'm David Gura alongside Lisa Mateo. Bring you the latest breaking news

reporting and analysis live this morning and every weekend, Saturday and Sunday

from 7:00 to 10:00 Wall Street time. And as Kristina pointed out at the top

of the show that last hour, focusing on a number of hot spots around the world,

certainly these protests that are taking place in India, the attack on the

airport in Saudi Arabia, and of course, the run up to the midterms here in the

United States just a few weeks away. We've had the president out on the

campaign trail again, really wrestling with higher energy prices and the effect

that that's having on the electorate going into those midterm elections and

making some interesting remarks, uh, ahead of going out to one of those

campaign stops that we're going to talk to, uh, some of our colleagues about in

just a minute. But first, let's go to Lisa Mateo.

She'll get you all caught up in the headlines.

You got a good morning, guys. We're showing with Saudi Arabia where

people where they said 12 people were killed, including an American and more

than 300 injured. That was Saturday in an attack on the

airport. President Donald Trump said he plans to

speak with Saudi Crown Prince Mohammed bin Salman, telling reporters what

happened in Saudi Arabia is not acceptable.

The president also said the U.S. may consider whether to join the

coalition fighting the Houthi rebels. It comes after three Saudi nationals

were killed in an attack on the airport on Thursday.

President Trump also speaking out against Ukraine President Volodymyr

Zelensky before heading to a rally in Tennessee yesterday.

Trump told reporters that Zelensky needs to stop attacking Russian oil

refineries, and said it may be time for the leader to step aside.

And we told him, do whatever you want, but don't hit the diesel fuel because

there's a big problem for Georgia. And what does he do?

He goes and hits the diesel fuel. He can do whatever he wants, but he

can't do that. The Lensky has been critical over

President Trump's recent deal to buy Russian diesel, warning that it could

prolong the war. Meanwhile, Russia has partially lifted

its ban on diesel exports as part of that deal, allowing 500,000 metric tons

of fuel to reach international markets. That's according to a Russian government

statement. The government did not say when that

fuel would be shipped. The U.S.

Central Command said that its jets disabled a cargo vessel in the Gulf of

Oman after the ship's crew ignored repeated warnings and tried to pass

through the naval blockade against Iran. The crew on the Panama flagship was not

harmed. Parts of New Delhi remain under tight

security as protesters continue to demand for the resignation of India's

top election official over a revision of the rules.

Local media reports say thousands of demonstrators were detained yesterday,

with most released a shooting at a home in Erie, Pennsylvania, leaves nine

people dead, including a pregnant woman and children.

Police say the 45 year old suspect took his own life after the killings, and was

related to seven of the victims. Erie Police Chief Rick Laura described

what happened when two women approached the home of the suspect on Friday.

Video evidence reviewed by investigators shows those two women arriving at the

residence appearing distressed, seeking assistance from neighbors and pounding

on the door. The audio video also appears to capture

muffled gunfire from inside the residence before the suspect emerged and

fatally shot both women. Investigators are still trying to

determine a motive for that shooting. David in prison there in Pennsylvania.

Lisa, thank you very much. Appreciate this update.

I want to play a bit more sound here. What the president said while suggesting

that Ukraine's president, President Zelensky, should step aside.

You've lost 30% of your country and you've had

over a million people killed between the two of them, over 2 million people

killed. That's a war that should have never

started. And I think it's time for Ukraine to get

a new president. This comes after President Trump

announced that he would be making a as yet unspecified deal with President

Putin to release diesel and potentially other fuel up, ending years of sanctions

ahead of the November 3rd midterms. Now, Republican lawmakers are already

pushing back against that. Pennsylvania Representative Brian

Fitzpatrick posted yesterday. Quote we will be introducing bipartisan

legislation to block any and all purchases of Russian oil.

It will be called the Ronald Reagan Peace Through Strength Act.

It will be forced to the floor via discharge and it will pass

overwhelmingly. Bloomberg News White House correspondent

Catherine Lucey joins us now with more. Catherine, great to have you with us on

this Sunday morning. And perhaps we could start with just

looking at what led to to this moment. Uh, we had the announcement of this

diesel deal, but the president for many months now has been kind of hammering

the Ukrainian president to stop attacking these oil and gas energy sites

within within Russia. This is the kind of final moment of

that. It seems like the him indicating that

this shouldn't be happening and suggesting that the president should

step down. Yeah, certainly.

It was an escalation of those comments yesterday.

The president is very frustrated. And of course, this is a relationship

that has long. I think we all know been pretty rocky,

been pretty up and down, uh, you know, from the, you know, from before the

president, you know, started a second term.

Um, but he is the president is very frustrated about oil prices globally.

He has been vocal about Ukrainian strikes on oil infrastructure, and he

sees me making the argument that this is a reason for high oil prices.

You know, of course, as we all know, oil prices rose this year after the start of

the Iran war. So it is more complicated than that.

But he is definitely trying to zero in on this and make this argument.

And and I think he's also frustrated that a conflict that he claimed he could

easily, uh, resolve, you know, uh, when he took office, you know, continues to

grind on. And they have not, you know, just fight,

uh, you know, a series of efforts over the past year plus have not been able to

find a resolution here. We're also at a really fascinating place

because everyone is talking about the midterms, and we talk all the time about

how allegedly, American voters do not vote for candidates based on foreign

policy. But we have a rare moment where there is

a pretty direct line between U.S. foreign policy and the issues they do

care about, which is the price of gas, the cost of living and things like that.

We've already seen how the Iran war is entering this conversation, but our own

Bloomberg analysis is that this amount of oil or diesel, even if it gets

through and it may not, it seems like, is it really going to impact prices?

So are there other repercussions president Trump is risking here by by

almost opening up at least a diplomatic spat on another front.

Yeah. I mean, I think you cited already, you

know, Republican, um, opposition to this frustration.

I thought it was interesting that their name that they may be naming this effort

the Ronald Reagan Act, uh, which clearly seems to be an effort to sort of call

back a different kind of Republican leadership.

But, yes, it's absolutely true. It's not clear if this will move the

needle at all, or honestly, what would move the needle at all between now and,

uh, Election Day. Um, the president is trying to find

things to show that they're taking action.

Um, and Americans don't vote on foreign policy until they do.

Right? So I mean, they are I think what people

are voting on is, um, pocketbook issues. People are frustrated about prices.

And among the prices is the price of gas.

And if you are someone, you know, a ranchers and farmers and, and folks who

use diesel, the price of a diesel is a huge issue.

Um, and those pressures haven't gotten any better.

And people, uh, are able to tie that to the war in Iran, which has not ended.

And so, um, you know, voters are able to see all of this.

And so Trump telling them that, you know, as he did as he did yesterday in a

rally on Friday, rally that, you know, that they are working on is that prices

are going to come down, people aren't feeling it.

And so, um, I think it's pretty clear that voters are very frustrated.

Catherine, very kind of you to join us on this Sunday.

Appreciate it. That's Captain Lucy.

She covers the white House for us here at Bloomberg News.

Thank you so much. And joining us now is Bill Taylor.

He's a distinguished fellow at the Atlantic Council Eurasia Center and was

former U.S. ambassador to Ukraine.

Ambassador, I just want to get your initial reaction to what you heard from

the president. I mean, obviously, this is following

this conversation he had with Russian President Vladimir Putin, which

ostensibly was supposed to be about this unknown outbreak, potentially of, uh,

plague or pneumonia in Irkutsk. And it somehow turned into this

conversation when I listened to the president's remarks following that call.

I hear Kremlin talking points. And I'm wondering if you heard the same

thing and what you think, just overall what you're hearing.

You're absolutely right, Kristina. Uh, what the Kremlin's done and what

Putin has done over and over, um, is provide information to President Trump,

um, that supports the Russians and undermines the Ukrainians.

Um, President Trump doesn't seem to hear from the Ukrainian side.

And so the idea of, uh, violating the sanctions, removing the sanctions on the

Russians, uh, use of the sale of these of oil, um, is one that is not popular.

Um, President Zelensky, uh, recognizes that the more money going into the

Russian treasury, it means more means a longer war against him.

So this this is what what we're seeing with this at this time.

Ambassador Taylor, I can't help but look at the timing here.

You had, uh, Ukrainian leadership in Florida talking about a resolution to

this conflict. All the while, President Putin picks up

the phone and has a conversation with with President Trump.

What do you make of that? It seems far from coincidental to me

that it does exactly right. It's not coincidental.

Um, this is what Putin does. I mean, Putin will pick up the phone on

several occasions over the past two years to change that idea that is in

President Trump's mind. Um, and only the only thing that matters

is President Trump's decisions. Uh, not the not with golf.

Uh, not Kushner, uh, not the secretary. It is President Trump's decisions.

And when he comes out with these, It is not something that has been discussed by

the rest of the government. So you're right.

Not a coincidence. President Putin does this over and over.

He knows he can get away with it. He's done it again.

I feel like this has put President Zelensky in a very difficult position,

because he did push back online on X, and it seems like he tried to deliver

measured criticism of the decision, if not the man.

He said it was a weak decision by a strong partner, but he had to know.

Using the word weak in adjacency with President Trump was was going to cause

some sort of a backlash. And then you had this reaction from the

president that was about the oil part of this, this story, um, the U.S.

accepting potentially Russian diesel when if you are Zelensky, how do you

navigate this? And at some point, if he can't get along

with President Trump, does he become a liability for Ukrainians, not even to

any fault of his own? Not at all.

Not at all. President Zelensky has a strong support

of Ukrainians. That's the key.

Um, there's no outside power. Um, President Trump does not have the

ability or the influence, um, to affect that.

In fact, just President Trump's comments yesterday are a lie are very likely, uh,

to increase President Zelensky support among Ukrainians.

They support him. And when someone attacks him, like he

did before year and a half ago in the Oval Office.

President Zelensky support among Ukrainians went way up.

That's going to happen again as well. And unlike a year and a half ago, the

United States is much less a player in the support for Ukraine.

We're not providing weapons. We're not providing the finances.

Uh, we're not leading the alliance. Um, so the U.S.

role, uh, and President Trump's influence is way down in this war.

And you ask what the Ukrainians are doing.

They're doing it themselves with strong support from the Europeans.

Europeans are providing the weapons and the finance.

And that's what's going to support the Ukrainians.

And the Ukrainians know that. Talk a bit about what the Europeans

might do. I know that you've been to Ukraine

recently. We saw there was a telephone call that

took place yesterday between UK's Prime Minister Andy Burnham and President

Zelensky. We have this meeting in Warsaw.

Warsaw Security Forum is taking place over the next couple of days.

Um, how do you expect European leaders to position themselves in light of this

announced deal? And in light of the comments that we've

heard from President Trump? European leaders are already stepping up

their support, uh, in defiance, uh, of what President Trump has been doing and

saying, uh, the European leaders have indicated they're going to they're going

to double down on sanctions. They're going to double down on all the

support, um, for Ukraine. Europeans understand that Russia is the

threat to them. Um, they understand that the Ukrainians

are the defense against that threat. And so the Europeans want the Ukrainians

to be able to stop the Russians in Ukraine, and they are stepping up to

provide the support to allow that to happen.

Is that still consistent throughout Europe?

I mean, I know there have been a couple of elections, there have been party

changes overall. Is it?

Is the region predominantly still supportive of Ukraine, or are you

starting to see more cracks in that alliance, as the United States is not

the flag bearer for that anymore? United States is not a flag bearer, and

there are differences of opinion in Europe.

But so far until these next round of elections in Europe.

So far the support has been there. Um, but there are elections coming up in

Germany. Um, and, uh, and the, the right, uh,

the, uh, party on the right has been less supportive of Ukraine.

That's a concern. Um, other other elections are coming up

as well. But so far the support from Europe has

been very strong. And we've already seen it in the last

couple of days. Let me borrow a metaphor from President

Zelensky. He referred to this diesel deal as a

birthday present to to President Putin. Taking that a bit farther, it seems like

the bow on that present is the Treasury Department's relaxation, relaxation of

sanctions. When it comes to oil and gas exports,

this is something that Congress could get involved with and presumably block.

Talk a bit about the importance of that and how thorny an issue that's going to

be is. Presumably President Trump tries to

continue pushing for this. Well, President Trump has as signed

legislation, the Graham bill that you all talked about over and over that does

put strong sanctions, increased sanctions, uh, on the on the Russians

and any nation that buys Russian oil. So undermining those sanctions, uh,

clearly supports the Russians. And it is at the detriment of Ukrainians

because the money goes in, the money goes into the Russian treasury, and that

allows the Russians to continue to fight the continued to their aggression and

bombarding civilians every day. David, I mean, we've seen this over and

over these two days ago, they attacked a civilian bus with two missiles, killing

30 people. This is going on, and this is what

happens when the Russians are able to continue that war.

So the sanctions are designed to reduce those funds going into the Treasury.

And that's what's being undermined by this, by this deal.

What does Ukraine still need that it's not getting militarily?

I know there was this announcement that they were potentially going to be able

to license patriots produce in themselves.

That seems to have gone nowhere and been stalled.

But is there something they are still really missing in order to stay in this

fight that they would need specifically from the United States?

You know, Christiane, there is one thing that could happen tomorrow, could happen

this afternoon. Um, the Russians are shooting ballistic

missiles at Ukrainians, in particular at civilians.

Um, and the Patriot missile that you just mentioned are in very short supply

around the world because all of them that have been expended, um, in the war

against Iran. So the Ukrainians would like to go after

the launchers. The Ukrainians say we want to go after

the archer, not the arrow. So they were to go after the launchers

in Russia. And in order to do that, they need

permission from Elon Musk to use Starlink in Russia.

That could happen tomorrow. And they've been in touch with Mr.

Musk. And Mr.

Musk has said, well, I need to check with the white House.

And the white House said, well, you just need to talk to Elon.

Um, so but that could happen. That could happen.

And that would give the Ukrainians the ability to stop at least a lot of the

losses of these missiles that doing grave damage to civilians every day.

Ambassador Bill Taylor, always good to catch up with you.

Thank you very much. On the heels of that trip that he took

recently to Ukraine and all of this news that we've been following over the

course of the weekend, President Trump's comments that President Zelensky should

step aside, a new leader should new leadership should come in, and that

major diesel deal that the president announced on Friday.

And a decent amount of pushback from Republicans already, including some

pretty strong allies of the president. Senator John Kennedy from Louisiana said

Putin will never be our friend. Uh, and what the thing that would really

bring diesel prices down would be an end to the war in Iraq.

Yes. All right.

As we mentioned earlier, this story, Goldman Sachs executives, including CEO

David Sullivan, set up for a major payday to the tune of half $1 billion.

That's coming on a big week of reports on bank earnings and inflation.

All that straight ahead on Bloomberg this weekend.

Thank you for joining us live in Bloomberg this week.

And I'm Lisa Mateo. Let's update you on today's top stories.

The remnants of Hurricane Isaias is heading for the Mid-Atlantic and

northeast. After the storm left four people dead

across the southeast. Heavy rains, powerful winds.

They left behind a trail of damaged roof and power downed power lines, leaving

hundreds of thousands in the dark. Florida Governor Ron DeSantis said more

flooding could be on the way. Some of these rivers are going to crest

in the next couple of days with all the inundation.

So I don't think that you can say, well, there was flooding, it's receded, we're

fine. There's going to be new flooding that's

going to arise in different parts of the region.

Meanwhile, Hurricane Simon and post Tropical Storm Rachel continue to track

toward western Mexico. Hopefully, the 14th said he will undergo

surgery in the coming days to remove a nodular lesion on his lung.

He made the announcement during his Sunday News blessing.

The 71 year old said the nodule was found at an early stage and is well

localized, and there is a new hire at the white House and a social media post.

President Trump announced the appointment of Kate Katie Bailey as

director of the Office of Legislative Affairs.

The president said Bailey understands how the executive and legislative

branches of government can most effectively work together to achieve

great success for the American people. Now, Bailey, she'll take the place of

James Braid, who is moving into the private sector.

David and Christina. She may have her work cut out for her.

Depending on what happens in these midterms, that's going to be a

challenging job. If the Democrats also one of those jobs,

that is extremely important. But you really don't know that person,

right? People in DC might know the makers and

their staffs, but they tend not to talk to us kind of ever.

Yeah. Thank you Lisa.

Thanks, Leslie. This week we're going to get another key

indicator about the economy with September inflation prints beginning

Wednesday with consumer prices. Bloomberg Economics expects prices to

rise 0.6% over last month. That would be the biggest jump in five

months, driven largely by higher energy costs.

Let's get to that in just a minute here. But first, we're also going to get

producer prices on Thursday as well as retail sales.

While some of the biggest banks begin reporting their earnings on inflation in

just a moment, as I said. But let's start with the banks.

And Herman Chang, senior U.S. bank analyst for Bloomberg Intelligence,

joins us now. I guess we should start with the

backdrop, this earnings backdrop, I mentioned all of those economic

indicators. That's right.

All of these banks are paying attention to what's going to happen with the fed

where rates are going. Talk a bit about that sort of how that's

coloring our expectations for what they're going to announce this week.

Right. So the backdrop is that we've had the

the interest rate hike by the Federal Reserve that's introduced a lot of

questions on where the economy is going to go.

And there's questions about credit quality for the banks going forward.

Are things going to slow down? We're in a period where credit quality

is pristine. Everybody's paying their bills on time.

There's not really any indicators that there's a decline in credits.

That being the case, everybody's looking forward to the next step.

So that's what we're going to be looking to hear from the bank management teams.

Are there any early indicators that credits slipping a little bit.

Are we still panicking about private credit.

Are we over that? I feel like I was very upset about

private credit and now I haven't heard about it in all these concerns.

It feels like those little cockroaches that Jamie Diamond was talking about

have scurried off the bank. Okay.

Okay, so, uh, one offs here and there, and they're all really related to fraud,

so there's no systemic issues, but idiosyncratic issues where there were

some bad actors. So hopefully it doesn't get flushed out

of the system and we're moving forward from there.

I think about what's likely to show up in these earnings, and I imagine the

space IPO is still looming large. Talk a bit about, um, how outsized role

that's likely to have played here in how these banks performed over the last

quarter. Yeah, that's really one of the drivers

of the first half. And it does feel like A tale of Two

cities here, a tale of two first two halves where the first half was great.

You had a great IPO activity driven by space and then a lot of trading activity

that that came from that. And then there was a lot of, uh, wealth

management activity because all of these space had so much money in their

pockets. They had to remember the story on the

terminal about how hard it was to be a new billionaire, a millionaire.

I didn't get a lot of pity. Exactly.

Yeah. Yeah.

We're not in that same boat, unfortunately.

Uh, but, uh, that being said, there's, um, some delays in the IPO.

There's there's more uncertainty in the markets.

Markets are a bit more fragile. Um, given the fact that, um, uh, the

equity markets, uh, despite being at really record highs, it's really driven

by I and some of the other sectors and industries that have have

underperformed. So that's really weighing, uh, on

sentiment going forward. Uh, that being said, the anthropic IPO

is supposed to happen in the fourth quarter.

So that should be a boon for, for for some of the big banks like Goldman and

Morgan Stanley. And you look at these big banks I mean

we're expecting earnings from Goldman Wells Fargo JP Morgan Citigroup,

everybody we just mentioned. And you talk about I we're we're backing

away from the B-word uh, this week. You know it's not a bubble.

It's not a bubble is not a bubble. But when you look at as a group their

exposure to AI, is this something that anyone is concerned about at this point?

Right. So direct exposure seems a bit minimal.

Okay. Banks are actually making the loans and

keeping them on their balance sheet. But they are facilitating that for

investors, right? So, um, you know, the, the, the, the the

direct exposure is not as bad. Correct.

So, so they're creating the bonds and the, uh, the securitizations to

facilitate the build out of the data centers.

Uh, that being said, if that slows down, uh, that could affect the the actual

revenue streams of the bank. So that's what's there's some questions

on that. And that's one of the reasons why some

of the capital market stocks, like, like a Goldman and Morgan Stanley have slowed

down a little bit over the past few months.

I wanted to ask you about wealth management.

You mentioned a moment ago, and this was kind of the provenance of Morgan Stanley

for so long. That's a bank that's done so well by the

growth of that, that unit. Um, are we seeing others kind of

matching them or getting close to to where are we seeing growth among these

banks when it comes to wealth management?

Yeah, wealth management is actually going to be one of the bright spots for

the third quarter where you're still having the buoyant equity markets.

You're you're we're expecting new money to continue to flow in.

Um, Morgan Stanley has been great. It's driven their their returns and

profitability at the top level of the peer group.

Uh, banks like Morgan Stanley, JP Morgan, uh, JP Morgan, B of A are all

really strong on the wealth management side.

And so we expect that to be, uh, a bright spot for, for the banks this

quarter. Whereas the, the actual investment

banking and trading activities might be a bit choppy here.

I only got about 30s. I know you're excited about these

earnings. What are you most excited about?

What do you what do you. Can't wait to see.

What do we can't wait to see. There's going to be a lot of questions

on succession planning. Uh, especially

for banks like Goldman. Uh, Bloomberg had a great article about,

uh, the number two guy, John Waldron, coming in, potentially, and, uh, over

the next couple of years to replace David Solomon.

So I'm sure there's going to be a lot of questions on that.

So that'll be front and center for us. I'll just ask you what it's like when

these are some of these earnings come out like either back to back to back or

simultaneously what is your what is your setup for doing?

You're listening to all of this and all of these calls at once or they stagger

them. You have to be prepared sometimes that

they go to back. Sometimes they're going on at the same

time. So we're just on the Bloomberg terminal

looking at the the earnings and the headlines that come in.

So we're monitoring everything in real time, doing it very well.

Herman Chen joining us here from Bloomberg Intelligence will be

contributing, I'm sure, to the top live blog writing reports out of that as

well. You can find both of those on the

Bloomberg screen. Thank you.

Coffee? Let us.

Yeah, yeah. All right.

We want to bring in Jennifer Lee. She's senior economics economist for BMO

markets. Jennifer you heard us talking about

capital and credit. But you know if if we're looking at

inflation expecting to come in higher again this week, what does that mean for

core inflation. And we're going to hear from Kevin Warsh

at the end of the week. What are we expecting to hear from the

fed chair. Uh first of all good morning.

Uh I hope everyone's having a good weekend.

So, you know, I love the excitement that everyone has ahead of the all the

earnings we have in economics. A lot of excitement building up ahead of

this coming week, whether we love it. Excited economist.

It is one of our favorite things. So we're looking we're actually right in

line with Bloomberg's consensus 2.6% for the headline, point 2% for the core.

But it's always this when we get to the nerdy, which is at a high point, two is

a low point two. And then, of course, you have to look at

how broadly based, um, some of the, uh, the price increases will be, uh, through

the entire basket. You know, we're looking for all the

upward pressure coming from Will to be coming from energy.

And there's more coming from that, like from an airlines or health care or, you

know, or other different services or goods.

Then we're going to start getting a bit more worried.

But overall, you know, base case we are looking for again, 0.2% should be pretty

chill in a way, and I don't think it should push the fed off the sidelines.

So we continue to look for that December rate hike is just what's going to go

after that. That's more of the question.

It's a torrent of data this week. As you know, Jennifer, we were talking

with Joanne Chu of the University of Michigan yesterday about the computer.

That's consumer sentiment numbers from from last week.

Yeah, we're going to get retail sales soon here as well.

Um, just a basic question. How are you thinking about the relative

health of the U.S. consumer and, um, his and her capacity

to deal with, uh, the pressures that are really mounting here when it comes to

higher energy prices and continued inflation.

So that's, you know, the consumer is still in, you know, again, broadly

speaking, in decent shape, you know, uh, net worth in terms of household assets

and all that benefiting from the strong sort market overall.

So, you know, of course wages are uh, or to the job market is still growing

steadily. But of course things have slowed down.

But and wages are still rising but also at a slower pace.

So but overall still in decent shape. Um, I thought it's just interesting how,

you know, consumer confidence, uh, as measured by the conference Board, has

taken a big hit, University of Michigan as well that we saw on Friday.

And yet consumers, you know, as you guys were mentioning yesterday, you know, we

couldn't continue to spend. And, you know, we're still looking for

increase, uh, retail sales this week, uh, for September, just on a slower pace

than what we're seeing in August. But I always like to look at just beyond

the headline. What are they spending on?

Are we still spending? Are we still going out for dinner or for

lunch? Are going up for our coffees.

Are we going? Are there more?

Um. Um, is there more spending in

recreational services, clothing, footwear, that sort of stuff, all the

discretionary items. And I think that's a good indicator of

consumer health and consumer confidence, despite what they say.

You know, when they're asked, you know, are you feeling good or are you not

feeling good? We're all miserable.

Yeah. Somebody said, Amanda, God, if PNC said

that to us yesterday, we were all miserable when the survey was asked.

Like the cheerful fatalism of buying your own Mikado toast.

Like I forgot it. It doesn't matter.

I'm just going to buy it. Um, when you look overseas, there's been

some rumblings about what's going on in Europe, especially France.

And I'm wondering, um, what your take is on on how the ECB is reacting.

And if you think there's a risk of contagion, uh, from European bonds.

So how do you see? It's kind of an interesting story.

You know, there at the beginning of the year, you know, way back in January, the

ECB was sitting pretty kind of smug, saying, yeah, you know, look at us.

We've got inflation at 2% right on target and nobody else does.

And then, of course, the war in the Middle East broke out and energy prices

took off. And here we are.

So you know, the ECB continues to, uh, to tweak rates higher.

Um, I will fully admit I was actually going to toss in an October rate hike

when I saw the German inflation number at a three year high.

Um, but then, of course, given everything that's happened, you know,

diesel prices have pulled back, but, um, temporarily, I think.

But, you know, with everything what's happening in France, you know, the ECB,

they can only do so much, right? It can't, uh, you know, um, it can.

So what it can do is to not fan the flames, I think, and raise rates in

October. We still look for a December rate hike,

but you're gonna have to see what happens in France.

And, of course, all this is all political, right?

You know, we're. And I feel like we go through this every

few years. Um, you know, they can't get there.

You know, they're trying to push their budget, um, forward.

There have a massive budget deficits to GDP, um, over 5%, which is well above

with the, um, the Stability Growth Act mandates, which is 3%.

And it really seems to be no appetite, nor will to pull back on spending,

especially with the elections around the quarter or in the spring.

And you've got the right with the farm right up in the lead right now.

So, um, I think this is more a very special whatever for, uh, situation for

France. And we have some other elections, I

believe, coming up next year. Um, so I don't think this is going to be

too much of a contagion thing, but then, of course, it's going to just part of

overall worries about rates and where they're going.

Generally. Always good to talk to you, especially

on this Sunday. Jennifer Lee of BMO Capital Markets

senior economist there, thank you very much for for your time.

And, Christine, I think really enjoyed that.

The consequential side, CBC contemplative side.

Exactly. Look, I think we're at a point now where

there have been the early stages of Kevin Warsh, his tenure as fed chair.

Um, you know, an adjustment, getting used to sort of how he communicates and

doesn't communicate and who you're listening to and not.

And, uh, very curious what he has to say in Bangkok, Thailand and the timing of

event here taking place. We were talking about the timing of it.

He's going to come right up against that blackout period, so he surely will have

the last word. Exactly.

Drop the mic in Thailand are coming up. Are the growing populist movements

around the world colliding with the reality of globalisation?

It is the focus of the weekend essay. This week we're going to explore that

with Sean Donnan, our colleague in the Washington, D.C.

bureau for Bloomberg News. Coming up next here on Bloomberg this

weekend on Bloomberg Television, radio Bloomberg.com, and the Bloomberg

Business. And.

Thank you for joining us live on Bloomberg this weekend.

I'm Lisa Mateo. Let's update you on today's top stories.

The Justice Department is investigating CNN, MSNBC, CBS, Fox and ABC after they

stopped providing full coverage of President Donald Trump's appearances and

the networks. They made the move after the white House

barred several news organizations from access.

The probe will look into whether they violated antitrust laws.

Another tech executive is calling for the slowing of advanced AI.

In a post on Microsoft CEO Satya Nadella.

He said companies should treat powerful AI models as potential insider threats

and create an emergency brake system to prevent a genetic models from going

rogue. It comes as anthropic and OpenAI

revealed how their AI models acted in unintended ways in sports.

The PGA tour continues with the final day of the Baker and Classic at the

Yokohama Country Club in Japan. Topping the leaderboard Michael Brennan

at 16 under par. He's followed by Keith Mitchell and

Jacob Bridgman at 15 under par. Brian Harman is at 13 under.

In the MLB playoffs, the Cleveland Guardians have advanced to the ALCS

after defeating the Chicago White Sox two to nothing game five at home and the

Guardians. They'll move on to challenge the Tampa

Bay rays tomorrow. I know it still hurts.

I know it does. And tonight, the Los Angeles Dodgers

take on the Milwaukee Brewers in Game one of the NLCS and Comic-Con entering

its final day at New York City's Javits Center, the annual event it brings fans

of sci fi, fantasy, horror and more for immersive experiences, star sightings

and also panels. It's the 20th anniversary of the

convention, and I kind of forgot until I saw people walking around the city

yesterday and I was like, is it Halloween?

That's what we're going to do is just saying, actually, now that you mention

it, I was having drinks with a friend outside and there was a woman dressed as

Sailor Moon, and we both said, isn't it kind of early for Halloween?

It must have been comets. I hear, I hear applause to say, well

done identifying Sailor Moon. I had no idea.

You know, my friend who, as I did in Salem, didn't have a nametag.

No, I was like, I know what that is. What is that?

She's like a sailor. Moon died, I was there, no thank you.

You got it. Got everything on this show.

She said that was something completely different.

Um, about a decade ago, the world experience a sort of dueling narrative

with populace. We had Brexit in the U.K.

and President Trump's first election win here in the US flew news.

Senior economics writer shut it down and argues that ten years on, populists are

losing their war on globalisation. He says globalisation is not merely

alive. It remains on the march.

Whether we like it or not. We spoke with him earlier over the

weekend. We are seeing in politics and in policy,

uh, all of these attempts to reshape the global economy, to try and and put the

brakes on globalization. And we've been watching this for ten

plus years. Uh, but there's a difference between

that kind of political narrative, uh, the, the kind of the policy attempts and

what's actually happening in the global economy.

And I think you can just look at your own life today.

Um, most of us, uh, in our own ways, have lives that are more integrated with

the rest of the world. Uh, than they were a decade ago.

Uh, whether that's social media, whether that's the phone that we, uh, use

probably too much on any given day. Uh, it's, uh, that is still built over

overseas and from parts in many different countries that come out of

many different countries. Uh, to whether it's like the financial

markets that we watch, uh, every day. I mean, in 2016, foreign holdings of

U.S. equities were something like $6

trillion. They're now sitting above $24 trillion.

Uh, U.S. holdings, uh, had a similar pattern over

the last ten years, the U.S. holdings of overseas equities.

So financially, uh, we're more integrated than we were.

And you look at some of the charts on things like trade in goods, like, you

know, basic old fashioned manifestations of globalization.

And you can hardly detect this populist revolution that we had ten years ago,

um, that was really supposed to, to bring the deaths.

And that kind of prompted a lot of obituaries for globalization.

It almost reminds me of, uh, in the collapse of the Soviet Union, we had

this golden arches theory of geo economic stability, which was, you know,

two countries that both have a McDonald's have never gone to war with

each other because the economic ties and the benefit to both will keep that from

happening. That fell apart when Russia invaded

Georgia and that had kind of been pushed to the side.

But it almost feels like you're arguing. We're going back to that.

The, the, the economics of these interconnectedness is keeping ties,

places where politically they may not be.

I mean, we just had the U.N. we've been talking kind of nonstop about

this degradation of multilateralism. But you're saying basically trade and

economics and the internet are kind of chugging along.

Yeah. And look, and there's no doubt that the

kind of the Golden Arches theory kind of fell apart eventually.

And there's no doubt that lots of different, uh, that in lots of different

ways, theories like that of globalization have been tested.

Yeah. Uh, some of them were pretty naive,

right? And, uh, globalization.

Just to be completely clear, is, you know, it's kind of neither bad nor good.

It just kind of is. Right.

It's it's not a, Uh, and I think that's something that we, we often forget and

it's. Yes, absolutely.

In Washington today, the kind of embrace of globalization and of we're going to

reform China through trade and economics, uh, all of that has gone out

the window in a big way, but that hasn't happened.

When you look at the lives of companies and consumers, I mean, you know, I am a

parent to two teenagers. Um, ten years ago, I remember thinking

of tick tock, Huawei, all of these different things as these kind of, uh,

bogeymen that we're going to, you know, that were national security threats to

the United States. Now they just kind of shape over our

lives in different ways. Uh, if I go on to Instagram, I run into

all of these dudes who are China maxing right now.

There is a lot of that right now. And there's and there's a

fascinating I subscribe to it. And we could.

And I'm sure there are conspiracy theories that this is all like a kind of

a ploy by the Chinese to somehow undermine American society or whatever

it is. But but the point is, it's there, right?

And our lives are as integrated as they were ten years ago, and I would argue

probably more so. And a lot of that is, is digital.

And we haven't even mentioned, you know, the acronym I yet.

Right. And I is is only doing more of that.

Uh, all these data centers that people object to that are being built in their,

uh, in their backyards are depend on imported products.

And by the way, Donald Trump has largely kept his tariffs off of the the chips

and the servers that go into those data centers in different way.

And he's kind of embraced globalization in a different way.

As I has grown, I mean, it's so I, I think there's there is this uh,

absolutely. We have moved away from this kind of

naive embrace of, you know, all will be well in the world if we could only trade

more with each other. Uh, and we will all reform and we all

become happy, healthy democracies and wealthier as a result.

That's that's out the window. There's no doubt about that.

There's a much more pragmatic view of trade that that is happening around the

world, not just here in the United States, but

that's very different. That policy discussion is very different

from what's happening in terms of actual economics and actual commerce and

business. Sean, let me have you gaze, um, into

your crystal ball, lastly, and give us a sense of where you think all of this is

headed. And something you encourage us to do is

take a long view, take a 2000 year plus view of, uh, of trading relationships.

Um, is this likely to continue? What could stand in the way of the

onward march of globalization? Let's.

I just think that the the story of humanity is a story of kind of looking

at the person in the next village and thinking, what can I sell them?

Uh, what can I learn from them? Right.

And that has grown from the next village to the next country to across the ocean

and so on. There's more of us, uh, traveling than

there were ten years ago. 100 years ago.

Certainly. Um, and I don't think that's going to

change. We're trading more ideas.

Uh, we are, uh, living lives that that depend more on everything from food that

is inspired from other places to to immigrants, uh, who provide many of the

services, especially in aging societies. Uh, and I don't think any of that is

going to change. Yes, absolutely.

There are going to be political reactions that are going to come and go,

and we're going to see other populist moments, uh, like this.

But there's this kind of relentless march of globalization that's been

there. And, you know, people seem to think

sometimes that globalization started in the 1990s.

I kind of started in the year zero in a lot of ways.

And, and, uh, and it's been there ever since.

It's come and gone. You know, it's slowed down.

It's accelerated in different periods. Uh, and, you know, I'm looking forward.

I just became a grandfather. Uh, and I have a hard time.

Thank you so much. He's adorable.

Uh, I have a hard time believing that young Anthony, uh, who was born in July.

Uh, ten years from now, 20 years from now, 50 years from now is going to have

a life that's any less integrated with the global economy than the life that

I'm leading. And I suspect it will probably be more

integrated. And I think that's something, uh, to

remember.

Welcome back to Bloomberg this weekend. I'm Christina Ruffini here with David

Gura. 2026 has been a pretty good year to be a

tech titan. And the numbers from Bloomberg's newly

relaunched Billionaires Index show why the 100 tech fortunes in the world's 500

richest people gained a combined $845 billion through the first nine months of

the year. That's the most ever over that time

period. For comparison, the billionaires who got

rich outside of tech lost a combined $62 billion over the same period.

The News wealth reporter Dylan Sloan has been digging into the numbers, which you

can explore for yourself at Rich. Go on the terminal or Bloomberg.com.

Slash billionaires. Tech in the US are sort of the two huge

drivers here. The headline number.

Um, you know, tech billionaires combined.

There's about 100 billionaires on the list who owe their fortunes to tech.

They contributed about $845 billion worth of the gains on the list this

year. Um, in comparison, everyone else lost

$62 billion combined. So there's just two.

There's even a case of the billionaire economy.

Exactly, exactly. I mean, I don't know exactly how the

lines would look if you drew it out, but it really has been tech carrying the

entirety of the list and, uh, everyone else really being way down.

So, you know, again, this, this big bifurcation that you're seeing up there,

the depth of things that underpins all of us.

You mentioned the website being relaunched, available on the terminal

Rich go. Um, like, what is a day like for you?

I mean, assembling this kind of information, I imagine is easier for

some billionaires than others who might be more secretive, absolutely.

Camped out in private jet lounges. Or how are you doing?

I'm doing my best. I mean, you know, it really is a ongoing

investigative reporting project. Every single day we have a team of, you

know, right around 15 reporters all around the world who are doing this, uh,

pretty much constantly. You know, we have, um, 500 people on the

list at any given time, but we maintain profiles on, you know, hundreds more

than that. And, uh, it really is different for

every single person, you know? I mean, some people are much easier to

value than others, just in terms of how their fortunes are structured, whether

these are in public companies or private companies, which can be much more

challenging to value. Um, and then, you know, billionaires

tend to be pretty private people for the most part, which, uh, presents its own

challenges in terms of, you know, getting in touch with these people and

verifying our information. But, um, it's a really interesting job.

Um, you know, it really allows me and my colleagues to see a little bit of, of a

little bit of everything. I feel like there's wealth and there's

there're billionaires in so many industries all over the world.

So it's really fun when you're doing these evaluations.

I mean, they can fluctuate quite a lot. I think about, you know, Elon Musk

especially. Right.

How do you rank them based on, you know, liquidity versus valuations of companies

versus investments. How do you make this calculation.

That's a great question. Yeah.

So I mean generally we are when we're talking about net worth, uh, it's a

great thing to bring up that difference between, you know, liquidity and

liquidity, because that's a real trend that we've been seeing recently,

especially with so many private company valuations soaring higher and higher,

especially some of these AI companies. You know, in terms of new entrance to

the list, that's a lot of the people we've been looking at recently.

We added all seven of the anthropic co-founders of the list earlier this

year, founders of some of the big Chinese, uh, AI Frontier Labs, deep sea

mini Max. Um, we don't discriminate on liquidity

versus liquidity. Um, we, you know, we value all that.

Well, at the same, we will, you know, make judgment calls and apply liquidity

discounts to some private company stakes.

Um, but yeah, for the most part, I mean, that does present interesting, but it is

exactly the valuation is what it is. But in terms of yeah, in terms of how

that wealth is deployed, um, it definitely, you know, does create some

interesting questions for specific individuals, a bit about the deployment

of, of wealth. What trends are you seeing in that

regard as we get closer to the midterm elections, for instance, how is that

manifest in kind of campaign donations? Exactly.

I mean, you said it right there. Like that's something that we've been

looking at really closely and doing a lot of reporting on, um, the I industry

specifically, obviously a source of a lot of this growth in wealth.

And we've been seeing a lot of spending coming out of that, that area.

Certainly. Um, one of my colleagues reported back

in June that, you know, the eye industry is expected to spend around $275

billion, um, influencing midterm races at both the federal and the state level

this fall. Obviously, you know, coming up in just a

few weeks, hugely important. Um, and again, that's, you know, in some

ways that's almost the more interesting part of, you know, putting numbers on

this, on this wealth, some is is useful of itself just to kind of set the

boundaries here. But what exactly is happening there and

political spending is, is certainly a big area when you have colleagues who

are in, um, Asia, among other places. What are we seeing in that region when

it comes to movement on this list? Yeah, we've been there's been a lot of

fun stories coming out of Asia, honestly, and specifically when it comes

to, you know, the eye industry, some of these back end companies, the sort of

picks and shovels companies that are that are contributing to things on that

front, um, we've had some fun names come out of there.

There's this one company, King Slide, in southern Taiwan.

Uh, they were founded in the 80s as a furniture manufacturing company.

They slide specifically for jaws and cabinets.

And then out of nowhere, you know, these are become vital for the data center

build out. When you're building server racks,

you're pulling out the right. Exactly.

So this company is skyrocketed in value. The founder of the company joined our

index with a net worth of $9.5 billion earlier this year.

And yeah, we're we're seeing, you know, wealth accumulating and maybe unexpected

places. Some in a lot of these companies sort of

focused on infrastructure and build out in Asia, which has been a big, you know,

a big trend for us. And when it comes to wealth generation

between the U.S. and China, specifically with AI, it

seems that China is speedier in amassing eye wealth.

What does that mean? Can you break that down?

Yeah. And this is sort of looking at, you

know, new entrants on the list. Um, we have been noticing that there's

been a big uptick in that from China. Certainly I think I threw out earlier a

few of those names at some of these Chinese frontier labs.

Um, we have had more new entrants to the list from China, even though, you know,

towards the top of the list, the top ten tech billionaires.

Uh, you know, we saw for the first time this year in September, actually, we've

been tracking this since 2012. Never before have all of the top ten

individuals on the index all been American.

We saw that for the first time in September.

So sort of at the high end. This is definitely weighted towards

folks in the U.S. but in terms of new entrants to us,

we're seeing more and more of those come from China.

Feeling great to tell you. What does the relaunch look like?

Walk us through quickly sort of what you've refreshed to read.

Absolutely. I would encourage everyone to go check

it out themselves. Broadcom slash billionaires.

Um you know it's all glitz and glam. The graphics look great, but also it has

some really interesting features in terms of being able to filter by region,

by industry, by age. Um, just to sort of, you know, obviously

looking at individuals one by one, but in terms of really visualizing some of

those trends and seeing how, you know, just the dynamics of wealth are shifting

across the world. Um, it gives you some really cool tools.

Um, it is very cool. I have it up here.

Elon Musk, once again classified as a, uh, trillionaire.

So as he was indicating, it is updated all the time.

And he and his colleagues told his colleagues, pulling out a lot of stories

from the data themselves, but also refreshing this concept.

Yeah, I thought it was very interesting that they're kind of liquidity agnostic.

This is valuation. That's how they calculate it.

Hard work. All right.

We're coming up at 9:00 here in New York City.

The next hour of Bloomberg. This weekend starts right now.

Welcome to Bloomberg this weekend live from New York with David Gura, Christina

Ruffini and Lisa Mateo. The latest headlines, analysis, big

interviews and the stories that hit home on your days are.

Welcome, Bloomberg this weekend coming to you live from Bloomberg's world

headquarters here in New York City. I'm David Greene.

I'm Christina Ruffini with Lisa Mateo. It is Sunday, October 11th.

And we're going to start this morning with what we've been doing.

We're kind of resetting our top global stories.

We've got this attack on an airport in Riyadh, and Saudi Arabia is talking

about the consequence of the president's remarks on Ukraine, and also the

president saying the U.S. will be importing gas from Russia.

Get to all of that in just a minute. Let's get a check of the headlines

first, though, with Lisa Mateo. Lisa, let's start with those attacks.

Christina. It's the deadliest incident in an

intensifying conflict with Yemen's, with Yemen's Houthis.

Now, Saudi Arabia said 12 people were killed, including an American.

More than 300 injured Saturday in that attack at the airport.

President Donald Trump said he plans to speak with Saudi Crown Prince Mohammed

bin Salman bin Salman, telling reporters what happened in Saudi Arabia is not

acceptable. The president also said the U.S.

may consider whether it should join the coalition fighting the Houthi rebels.

It comes after three Saudi nationals were killed in an attack on the airport

on Thursday. President Trump also speaking out

against Ukraine President Volodymyr Zelensky before heading to a rally in

Tennessee yesterday. Trump told reporters that Zelensky needs

to stop attacking Russian oil refineries, and said it may be time for

the leader to step aside. You've lost 30% of your country and

you've had over a million people killed between the

two of them, over 2 million people killed.

That's a war that should have never started.

And I think it's time for Ukraine to get a new president.

Zelensky has been critical over President Trump's recent deal to buy

Russian diesel, warning that it could prolong the war.

Meanwhile, Russia has partially lifted its ban on diesel exports as part of

that deal, allowing 500,000 metric tons of fuel to reach international markets.

That's according to a Russian government statement.

The government did not say when that fuel would be shipped.

The U.S. Central Command, it says that its jets

disabled a cargo vessel in the Gulf of Oman after the ship's crew ignored

repeated warnings and tried to pass through the naval blockade against Iran.

The crew on the Panama flagship was not harmed.

Residents in central Gaza returning to their homes to assess the damage from

Israeli strikes. One resident said at least ten homes

housing some 300 families were reduced to rubble.

The remnants of Hurricane Isaias is heading to the Mid-Atlantic to the hill

for the northeast as well. Now, that's after the storm left four

people dead across it. Southeast.

Heavy rains, powerful winds. They left behind a trail of damaged roof

and also downed power lines, leaving hundreds of thousands of people in the

dark. Florida Governor Ron DeSantis said more

flooding could be on the way. Some of these rivers are going to crest

in the next couple of days with all the inundation.

So I don't think that you can say, well, there was flooding.

It's receded. We're fine.

There's going to be new flooding that's going to arise in different parts of the

region. Meanwhile, Hurricane Simon post-tropical

Storm Rachel may continue to track toward western Mexico.

They've received a few things they said. All right, David, this attack on this

airport in Riyadh. Details are scant, but it is one of the

deadliest strikes, uh, since, uh, since the conflict with Iran started, 12

people, including one American, are dead.

That has been confirmed by, uh, Secretary of State Marco Rubio, uh, from

the State Department. And they're still trying to get it to

get a full number of casualties, as that's like a major, a major hub at a

time when Saudi, as we were talking about early in the show, is trying to

come to the forefront. They have all kinds of events and

economic conferences planned this month, and now this big energy conference, a

big financial conference in just a couple of weeks time.

And of course, dovetailing that with what we're seeing in Ukraine is, uh,

Oliver Crook was telling us a number of European leaders gathering in Warsaw for

the Social Security Forum there to discuss a number of issues.

But no doubt this is going to be front and center.

The president's remarks, but also the steel that for diesel that the president

announced on Friday of last week with us to cover both of these fast moving

stories. It's a beer Abu Omar, she's Bloomberg

News Middle East correspondent and anchor, and Alex Kocher of Geo economics

analyst with Bloomberg Economics. Abeer, let me start with you.

And maybe you can just get us up to speed on what we know and don't know.

This was the latest in a string of attacks that Saudi Arabia has seen over

the course of the last few days here. But to Cristina's point, put this in

some context here. This was a massive attack and it's

having seismic ramifications across the region.

Yeah, absolutely David. Enemy the size and scope.

There is a superlative. As you guys have just alluded to, this

is the single deadliest incident since the start of the Iran war.

And of course, when we talk about the wider context, the war between Iran and

the US is still very much taking place, as you guys know.

But this has taken a different front. This is a war that's been going on

between Saudi Arabia and the Yemen based Houthis.

For the good part of the past decade, it has accelerated over the past few weeks,

of course, we've reported on a major pipeline in Saudi Arabia being shut down

for a little bit. And now this attack on King Khalid's

airport in, uh, in Riyadh, the capital, of course, the main airport in the city,

we've reported about a dozen casualties, over 300 injuries, some of them in

critical conditions. I mean, the footage that you guys were

showing at the top of the segment is just devastating.

It really gets to show just how much damage there is.

And you also alluded to the fact that this happens at a time where Saudi

Arabia is gearing up for two major conferences.

One is already taking place. WPC that is the World Petroleum

Congress, with a lot of officials and a lot of executives from big companies

were expected to attend. The latest reporting that we have is

that VP mike O'Neill is no longer attending in person.

What? And so on from shell.

Also, according to Bloomberg, reporting not attending due to the of course,

disruption that we're seeing in the flight movement.

And we're gearing up in a couple of weeks time to the 10th anniversary for

the FII, the major financial conferences.

So that is for now, going ahead. It is going according to plan.

But of course, the situation remains very, very fluid.

This morning and yesterday in Saudi Arabia, warnings from the UK and the US

about travel. In light of all of this, actually, Alex,

as we talk a lot about this conflict on the list, we talk about urban

populations previously considering themselves safe, now suddenly finding

themselves at risk in this conflict. This is obviously something they've been

dealing with in Ukraine, in Kiev in particular for quite some time now.

There were some very tough strikes, a lot of casualties over the past week.

And now that comes on the heels of these remarks from President Trump.

I'm wondering how they were received inside the country.

And then we've already seen some reaction from European leaders, if you

could take us through that. Yes, absolutely.

The Russian attacks on Ukrainian cities are nothing new.

They have been taking place since 2022, but in recent weeks Russia has been

intensifying. And this is largely due to the fact that

the Russian forces on the battlefield are not doing well in some areas.

They're even reportedly retreating. Um, and as a result, Russia has taken

the war to the air, uh, striking civilians and civilian targets such as

bridges, hospitals, schools and and just people's homes in multiple cities.

Um, in terms of the, uh, the comments by the US President Trump, um, this is, uh,

not something that majority of Ukraine, uh, Ukrainian population is currently

supporting. Um, uh, according to the latest polling,

which was taken in Ukraine, uh, in late September.

71% Ukrainians believe that uh, elections cannot take place while the

war is and going. Only 24% think that elections can take

place. Um, so based on this, I said, I suspect

that Ukraine will be unwilling to hold a fresh election.

And even if there is a fresh election, um, the president Zielinski his approval

rating is actually quite high. And, uh, in a hypothetical, uh, poll

about if he wanted to run again, um, he's actually performing fairly well,

either as the front runner or the the second.

That we can spend some time talking about this diesel deal and the

ramifications, both in Ukraine and in that conflict and what's happening in

the Middle East as well. But Alex, let me go to you first on that

point. Uh, President Zelensky's consternation,

outrage over this deal is really evident in the post that he's made on social

media. The remarks that that he's given here.

Walk us through what it means that in real terms, what he's arguing here is

this is money that will go straight into Russia's coffers and will allow them to

prolong this, this conflict. Uh, and the present United States

presumably is is blind to that or ignoring that fact.

What does it mean in real terms here, to have this money flowing back into Russia

in this way? Uh, if this diesel importation is

allowed to go forward? Russia has a multiple advantages over

Ukraine in terms of financial power, manpower and firepower.

And Ukraine has been trying to reduce at least some of those for quite some time.

Uh, Ukrainian attacks in Russian refineries and other energy

infrastructure was one of the ways to reduce the Russian financial power and,

uh, reduce the ability of the Russian state to fund this war.

So from the Ukrainian perspective, anything that helps.

Russian financial position is damaging. Um, I do not think that it will have a

very materially big impact on, uh, Russian fiscal position because the

volumes, um, of diesel to be exported by Russia are fairly small, uh, especially

on the global level. But, uh, from the Ukrainian perspective,

this is about, uh, a matter of principle.

Uh, Ukraine expects countries to reduce, uh, their trade, uh, with Russia rather

than increase their trade with Russia. Um, here, when you look at what is going

on with oil production and transport in your region, it seems to me you've got

three main issues, right? You've got refining capacity.

You've got delivery and then you've got a production.

This was a really tough week for tankers in the Gulf, right?

This this past week, 11 tankers came under attack.

We also showed a chart a couple days ago that the cost of shipping is at an all

time high. It goes like this.

And then like this. And that's everything.

That's insurance. That's the crew.

That's just the cost of moving this around.

How are Gulf leaders trying to deal with this, given the current state of play,

given all the uncertainties and now the fact that the Red sea is not a safe bet

as a way to get this product to market. Yeah, it's a deep problem.

Christina. Right.

I mean, some of the Gulf officials, including in the UAE and more recently

in Saudi Arabia, have been doubling down on this argument that in a couple of

years time, in a few years time, they want to develop the zero Hormuz

strategy, where none of their tankers go through the Strait of Hormuz.

Now, this has been kind of mimicked by U.S.

officials on your side of the room. But for the time being, what you're

seeing the Strait of Hormuz in the numbers that you have alluded to, more

than 500% increase in the trip that tankers or super tankers make from the

Persian Gulf to Asia. As a matter of fact, Bloomberg ran a

story suggesting that it's now more expensive to make that trip to Asia than

it is to fly a rocket to space. So that just gets to show you, again,

the superlatives that we're dealing with here for Saudi Arabia.

And perhaps it's the focal point this morning it's been resorting to the Red

sea again. This whole thing started the attacks on

Saudi Arabia started because it set out on a route to eliminate.

And this is to again, quote, Saudi officials eliminate the Houthi threat.

The Houthis have, of course, been diving into the Red sea, taking some real

assets there. Saudi Arabia says that it has taken some

of the assets that the Houthis have taken a hold of over the past few weeks,

namely marjah, which is a main island that is very close to where where the

Houthis are based. This is Hodeida, of course.

And so it is a deep problem. They are trying to find solutions around

it. And then the bigger question here is

does the fact that or do to the higher energy prices that we're seeing right

now, offset what we're seeing in terms of the ability to get crude barrels

across the Persian Gulf. That question is not yet.

The answer to that is not yet apparent. But Saudi Arabia, for the time being,

has deepened its projection for its budget deficit for the end of the year.

This is, of course, due to multiple reasons.

One of them is the ability to get crude or oil barrels through the Persian Gulf.

But another is, of course, the multiple infrastructure projects that the Kingdom

has set out on over the past decade. That is all in question this morning.

This has all been in question over the past couple of days, as though those

attacks by the Houthis escalate in the kingdom of here.

How much is what happened in 2015, in the years that followed, kind of

bringing through the minds of leaders in the Gulf right now and probably bringing

through the minds of President Trump's military advisors as well.

We heard the president yesterday saying, you know, he hasn't made up his mind

whether or not the U.S. would get involved in this conflict

here. Um, not exactly the most shining moment

of that first term here when the US to get involved in fighting the Houthis

back, uh, you know, a few years ago during his first term.

Yeah. Look, I mean, it's definitely a question

we'll have to ask them. This is, of course, still very recent.

We don't know just what exactly the thinking right now is, but the threat is

still very real. And look, I mean, if you were to put

the, the the macro context of what is happening in Iran, this brings new

paradigms to the equation, right? Because that red line that we've been

speaking about since the start of this war about eight months ago has already

been crossed. So this region is now thinking about

their security, about the geography, more so than they have been in 2015,

because even then the Houthi threat was I don't want to use the word contained,

but compared to what is happening now, more contained then than 2026 for sure.

But when you see the war developing at different fronts.

That just accelerates the the way they think about doubling down on new

security partners. We know that Saudi Arabia, for example,

has resorted to the help of the United States.

President Trump the first time around, said he doesn't want to get involved.

Now we're hearing reports that he may or may not.

So, again, some conflicting statements there.

We've heard that Saudi Arabia has reached out to the UK for some defence

abilities. The UK has helped, but in a very

contained, uh, way. And then friends of course, has been

trying to help when it comes to defence. But I would say the situation is a

little bit different because you have the war with Iran still very much going

on, you still have the fact that Iran is hitting or targeting ships in the Strait

of Hormuz, their main livelihood. Of course, we talk about diversification

efforts in the wider Gulf region, but let's just not forget that the main

livelihood, the main, uh, source of funding for these countries, is still

very much those oil barrels that flow through the Strait of Hormuz.

Not very much right now, but that is their main source of finance.

One of the other thing that ties these two, increasingly it seem similar

conflicts together are, in fact, that they have the same negotiating team for

the U.S. side.

Kushner. Wyckoff.

Alex, there was a report after that surprise phone call between the

presidents from Tass semi-official news agency out of Moscow, saying that those

negotiators could likely be in Moscow next week or the week following to try

to work on the Ukraine issue. Any prospect of that?

Have you heard any reporting about that? And does this whole thing make it even

more even less likely? Excuse me?

That that these two sides are any closer to each other when it comes to