Episode summary
Government Shutdown Ends; New Iran Negotiations | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 16 min
Summary
The partial government shutdown ended after four days when President Trump signed a funding deal with Senate Democrats, but the compromise leaves a larger fight ahead over immigration enforcement. The agreement keeps most of the government funded through Sept. 30, while the Department of Homeland Security is funded only through Feb. 13, giving lawmakers nine more days to negotiate Democrats’ demands for restrictions on ICE agents. The host and analysts said a new lapse could still hit FEMA and TSA if no deal is reached, even though ICE and Border Patrol have separate funding from earlier legislation.
On geopolitics, Iran is seeking to shift planned talks with the US from Turkey to Oman and narrow the agenda to its nuclear program. The host said the Trump administration wants any deal to include missiles and support for proxy militias as well, and Trump repeated that negotiations are ongoing.
Markets were driven by a sharp reassessment of AI winners and losers. Software stocks fell again, Microsoft remained under pressure, and Alphabet’s earnings loomed with investors focused on AI spending. AMD’s forecast disappointed, Silicon Labs surged on takeover talk, Nvidia was said to be nearing a $20 billion OpenAI investment, and Novo Nordisk and UBS both posted mixed results that reflected investor sensitivity to growth, pricing, and capital returns.
Key takeaways
- The shutdown ended, but the real deadline is Feb. 13, when DHS funding expires unless lawmakers strike a new immigration-enforcement deal.
- Democrats are pushing limits on ICE tactics, including warrants, masks, and roving operations, while Republicans are resisting those terms.
- Iran wants the US talks moved to Oman and narrowed to nuclear issues, but the Trump administration wants missiles and militia support included too.
- Investors kept punishing software and AI-exposed names as they grow less patient with heavy capex spending and uncertain returns.
- Novo Nordisk warned that sales of its obesity drugs could fall as much as 13%, even as it announced a new share buyback.
- UBS beat earnings but disappointed on wealth-management inflows, showing that strong profits were not enough to satisfy investors.
Notable quotes
“It continues to fund uh deportation flights that are removing dangerous illegal aliens from our country”
“The House would have to pass this very early uh next week for the Senate in order to take it up and get it done by February 13th”
“Sources say Tran wants the talks to focus only on Iran's nuclear activities and not its support for proxy militias in the Middle East and its ballistic missiles”
“the theme that seems to have gripped investors is that AI is going to be able to do much of the stuff that software companies do”
“It says those sales will fall by as much as 13%. Novo blames increased competition and lower prices for its blockbuster weight loss medicines”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager. — And I'm Karen Moscow. Here are the stories we're following today. — Karen, we begin in Washington where after just 4 days, the partial government shutdown is over. President Trump has signed his deal with Senate Democrats to reopen the government with less than two weeks of funding for the Department of Homeland Security. That's to allow more time to negotiate on Democrats demands on new limits for immigration enforcement. President Trump says the new law won't stop his immigration agenda.
It continues to fund uh deportation flights that are removing dangerous illegal aliens from our country. It continues historically successful efforts to reduce crime in our nation's capital. We have a very safe city right now. — That was President Trump at the Oval Office bill signing heard live on Bloomberg radio. Bloomberg's Eric Wson reports lawmakers now have just nine days to come to an agreement on reigning in ICE agents.
Democrats have a long list of demands including judicial warrants and taking masks off that Republicans are really not willing to entertain and it's just very hard. The House would have to pass this very early uh next week for the Senate in order to take it up and get it done by February 13th. I don't see that happening.
Bloomberg's Eric Watson reports if they don't reach a deal by next Friday, FEMA and TSA employees could start to miss paychecks. ICE and Border Patrol would continue to receive funds under President Trump's one big beautiful tax and spending cut law.
We now turn to geopolitics. Nathan Bloomberg News has learned Iran is asking the US to move diplomatic talks this Friday from Turkey to Oman. Sources say Tran wants the talks to focus only on Iran's nuclear activities and not its support for proxy militias in the Middle East and its ballistic missiles.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- government shutdown
- iran nuclear talks
- us immigration enforcement
- middle east tensions and oil markets
- epstein investigation
Watch the episode
Watch “Government Shutdown Ends; New Iran Negotiations | Bloomberg Daybreak: US Edition” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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