| Bloomberg Evening Briefing Americas |
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| Two federal judges rejected the Trump administration's argument that it must suspend food-aid benefits for tens of millions of Americans during the government shutdown, ruling the move to be likely unlawful. US officials must use contingency funding to at least partially keep the program operational, the courts said. About 42 million Americans face the prospect of seeing their food assistance cut off under the Supplemental Nutrition Assistance Program, despite billions of dollars in alternative funding that appear to be set aside to maintain it during the budget impasse. The shutdown, now among the longest ever, stems from Democratic demands that Republicans lift a deadline that will effectively cut off healthcare access for millions of Americans. The GOP insists a "clean" budget should be passed before any talk of deadlines. The Trump administration meanwhile has said the shutdown ties its hands with regard to SNAP, in that tapping the alternate funds would be illegal. This however contradicts its own pre-shutdown plans—since deleted from a government website—saying SNAP can continue. Democrats contend the food assistance crisis is actually Trump using the threat of ending food aid for millions as leverage to force an end to the shutdown—without agreeing to their healthcare demands. Chuck Schumer, the Senate minority leader, accused the president of "weaponizing hunger." —David E. Rovella | |
What You Need to Know Today | |
| Wall Street's bull market got fresh fuel at end of a month that's lived up to its volatile reputation, with optimism about earnings outweighing worries about a rally that's heavily concentrated on tech giants. Following a pause in the S&P 500's nearly $17 trillion surge, the gauge climbed on solid outlooks from Amazon and Apple. To be fair, not every megacap gained Friday, and the iPhone maker's advance sputtered as a sales drop in China tempered excitement for what promises to be a busy holiday season. Bonds steadied after a post-Federal Reserve rout. The dollar rose. | |
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| The man who made his name shorting the US housing market sent what appears to be a cryptic warning to retail investors about market exuberance, alluding to bubbles and what reads like a reference to the 1983 classic WarGames. Michael Burry's social media post comes at a time when more people are questioning the financial soundness of the artificial intelligence boom that has led to a stock price surge for a relatively small group of tech companies. The hedge fund manager is known for his cautionary comments on the markets and the economy. His post didn't make clear which "bubbles" he was referring to, though. But if one had to guess what might be behind his musings, it would be defensible to note that Nvidia, for example, this week became the first company whose market value exceeded $5 trillion. Its value now accounts for nearly one-tenth of the S&P 500 and exceeds the gross domestic products of India, Japan and Germany.  Michael Burry Photographer: Astrid Stawiarz/Getty Images North America | |
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| Three US central bank officials said they did not support a decision to cut interest rates this week, underscoring Federal Reserve Chair Jerome Powell's warning Wednesday that another reduction in December is far from guaranteed. Dallas Fed President Lorie Logan and her Cleveland counterpart, Beth Hammack, said Friday they would have preferred to hold rates steady. Both were speaking at a conference in Dallas, following a statement earlier in the day from Kansas City Fed President Jeff Schmid outlining the reasons for his dissent against Wednesday's rate cut. | |
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| Just this month, Meta secured about $60 billion in capital to build data centers, part of its spending to get ahead in the artificial intelligence race. And half of that won't show up on the social media giant's balance sheet as debt. Yes, the notorious off-balance sheet strategy is back. Meta is among firms again popularizing a way for debt to sit completely off balance sheet, allowing enormous sums to be raised while theoretically limiting the impact on its financial health. Morgan Stanley structured a $30 billion deal—the largest private capital transaction on record—where the debt would sit in a special purpose vehicle tied to Blue Owl Capital. That made it easier for Meta to raise another $30 billion this week the usual way, in the corporate bond market. | |
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What You'll Need to Know Tomorrow | |
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| Bloomberg Green at COP30: Climate action takes center stage on Nov. 4, when Bloomberg Green comes to São Paulo, uniting leaders from business, finance, government, academia and NGOs. Ahead of COP30 in Brazil, they'll engage in bold conversations on how to turn climate goals into real solutions. Learn more here. | |
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