Tuesday, September 30, 2025

Fat-shaming ahead of a shutdown is certainly a choice

Things are getting weird in Washington.
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Today's Agenda

Closing Time

Man, this government sure has a unique way with words.

Secretary of Defense Pete Hegseth brought 800 of the military's most senior officers and other leaders together to tell them that he's tired of seeing "fat troops" and "beardos" on the battlefield. Meanwhile, Republican Senator Lindsey Graham had some choice things to say about his political foes: "A 600-pound man is more likely to pass up a donut than the Democrats are to shut down the government for any length of time, because they love the government as much as a 600-pound man loves a donut."

Did I miss something? Is fat-shaming suddenly socially acceptable in Washington?? Although James Stavridis says Hegseth does have a point — "almost all of those 800 leaders would appreciate his call for high standards of physical fitness across the board," he writes — his blunt delivery made for some flashy headlines.

As for Graham's shutdown-donut comparison, the impasse in Congress is unlikely to be resolved before the clock strikes twelve. With only a few hours to go until the deadline, Bloomberg News reporters Jennifer Dlouhy and Caitlin Reilly say "the deadlock over spending threatens to paralyze many US government operations for the first time in nearly seven years." Here's a handy guide to show you what's at stake:

"Whether it lasts days or weeks, a shutdown is going to be a test of will and narrative for both sides," writes Nia-Malika Henderson. "For Democrats, the question is how long minority leaders Hakeem Jeffries and Chuck Schumer can remain united, with Jeffries playing the lead. For Republicans, at issue is whether they can convince Americans that they actually believe keeping the government funded and functioning is actually worthwhile — a decidedly un-Republican message, particularly in 2025, the year of DOGE."

Even so, House Speaker Mike Johnson is giving it a go. "FEMA won't be funded. We have hurricanes off the coast of the United States right now. This is serious business," he told reporters after a meeting with President Trump.

Hearing a Republican official ringing alarm bells about FEMA? That's rich, considering Trump wants to axe the entire operation at the end of the year. But it is serious business, says Mark Gongloff. A lapse at one of FEMA's most crucial arms, the National Flood Insurance Program — NFIP, for short — will worsen an already-dire crisis. "As of this writing, there have been 33 such temporary reauthorizations since 2017. A 34th and 35th will do nothing to solve the program's deep-rooted problems," he writes. "Every day the NFIP is out of commission potentially represents hundreds of millions of dollars in failed home closings."

Drug Deals

During his extremely busy day, Trump announced a new deal with Pfizer to help lower drug prices for American consumers. According to Bloomberg News, the company will offer a selection of half-priced products on a direct-to-consumer website called "TrumpRx." It's quite the 180-degree turnaround for the president. Just last week, he was threatening to rain 100% tariffs down on the industry. Now Pfizer can breathe easy — for now.

But curiously absent from the White House's fact sheet on the drug-pricing agreement is the perennial thorn in Trump's side: China. In the past four years, Juliana Liu says licensing agreements to take Chinese pharmaceutical products worldwide have nearly quadrupled, with US-bound ones accounting for more than half of the total value. Pfizer and AstraZeneca's supply chains have become so reliant on Beijing that they lobbied hard against a drafted order that would target medical treatments of Chinese origin.

Still, it's possible that Trump might retaliate down the road. "From EVs to batteries to mobile phones, Washington has a track record of closing the US market to Chinese challengers, often citing national security reasons," Juliana notes. "As a result, rising regulatory scrutiny of experimental treatments from China is a risk that cannot be ignored."

In the coming weeks and months, we'll learn more about how the president plans to run his eponymous drug emporium. I'd sure like a prescription for my nasty bout of Trump Fatigue.

Couriers in Crisis

Food delivery apps have become so engrained in our daily lives that they've become verbs. You're no longer ordering Chinese food on DoorDash — you "DoorDashed" it. Likewise, the food-delivery economy has blossomed into a global phenomenon, with couriers whizzing around on two-wheeled vehicles at all hours of the day. But the world is losing something extraordinarily precious in the midst of all that convenience: lives.

Juan Pablo Spinetto says motorcycle accidents "are becoming alarmingly common across Latin America, where traffic crashes are already the leading cause of death among young people, especially men … with some of the planet's most densely populated cities and a motorcycle boom showing no sign of slowing, the region faces a mounting public health and road-safety crisis."

Addressing the problem won't be easy, but the fact that you're reading about it in this newsletter is a start. "A first step is to give this crisis the visibility it deserves," JP writes. "Unlike crime — which carries clear political repercussions — road accidents often draw limited public attention because meaningful fixes demand unpopular policies." Please read the whole thing — and make sure to tip your driver!

Telltale Charts

Welp, Electronic Arts finally got the motherlode in real life. The game maker agreed to sell itself in the largest leveraged buyout EVER to a group of investors including a firm run by Trump's son-in-law Jared Kushner and Saudi Arabia's sovereign wealth fund. John Authers says it's "the clearest sign yet that the long-anticipated Trump 2.0 deal boom is beginning to take shape." As part of the deal, which values the video-game company at about $55 billion, JPMorgan is providing $20 billion of debt — a record commitment that Paul J. Davies thinks is risky, despite the deal having a healthy cushion of financing. "If JPMorgan and other banks brought into the EA financing get caught out by markets in the months ahead, the private credit pools to which they now all have access – and the hundreds of billions in other big alternative funds – will likely offer a different exit," he writes.

Brunello Cucinelli is in hot water. Last week, short seller Morpheus Research published an 84-page report accusing the cashmere king of misleading investors about operating in Russia and — gasp! — offloading merchandise at discount retailers. As someone who spends more time at TJ Maxx than I care to admit, I can confirm Cucinelli pieces do turn up on the "Runway" rack from time to time, and TikTok has the receipts. "The company's inventory as a percentage of sales is relatively high," Andrea Felsted writes. "It has few outlet stores, and its ethical stance means it cannot destroy stock." Perhaps the short-seller's scrutiny over its surfeit of SKU numbers is warranted, she argues. A luxury brand that's known for cashmere sweaters probably doesn't need to be selling tic-tac-toe boards for $1,250!

Further Reading

Smarter funding can help Ukraine win the drone wars. — Bloomberg editorial board

The war on H-1Bs has a new front — and bipartisan support. — Patricia Lopez

Warren Buffett will decide when it's time to do a rail deal. — Thomas Black

Harvard has many advantages, but vocational education isn't one. — Allison Schrager

Now that Trump and Xi are talking, Taiwan looks vulnerable. — Karishma Vaswani

Jaguar's cyberattack is a major red flag for manufacturers. — Chris Bryant

Malawi's president is a triumph and tragedy for African democracy. — Justice Malala

ICYMI

OpenAI's Sora app is here.

Steve Cohen's dream casino.

AI helps local journalists.

Kickers

Bougie butter is booming.

Jumping spiders are pets.

Mamdani is running on food.

Notes: Please send Animal Farm Creamery butter and feedback to Jessica Karl at jkarl9@bloomberg.net.

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