Episode summary
Trump Mail-In Request Rejected; Obama Weighs In on AI | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min · Hosts: Eric Mollo
Summary
The Supreme Court rejected the Trump administration’s effort to force new Postal Service restrictions on mail-in ballots before the midterm elections, leaving existing state voting procedures in place for now. Bloomberg’s court reporters said the ruling turns on timing rather than the merits of the rules themselves: states were already mailing ballots, and the justices agreed there was not enough urgency to impose major changes this close to the vote.
The show also focused on rising tension in markets and policy around artificial intelligence. Trump attacked calls from Anthropic and OpenAI for a slowdown in frontier AI development, while Barack Obama warned that AI could unleash catastrophe if it is not properly managed and said voluntary standards will not be enough. Bloomberg’s reporters said Congress is unlikely to act soon because the House is leaving Washington before the midterms.
Markets were under pressure as the 10-year Treasury yield hovered near 5.02%, a level not seen since 2007, ahead of the Federal Reserve’s expected rate increase. The discussion linked the move to energy prices, debt concerns, and inflation, while also noting Bank of America’s warning that trading revenue will be relatively flat in the third quarter and that Treasury Secretary Scott Bessent is headed into a potentially contentious hearing.
Key takeaways
- The Supreme Court let states continue mailing ballots under existing procedures for the midterms, blocking Trump’s push for immediate Postal Service changes.
- Bloomberg’s court reporter said the justices may still allow the Postal Service to adopt the new rules later, but not on an emergency timetable.
- Trump dismissed AI safety warnings as “a hoax,” while Obama argued that voluntary company standards will not be enough to manage the technology.
- The 10-year Treasury yield rose to 5.02%, near 20-year highs, raising the stakes for the Federal Reserve’s rate decision.
- Lorie Calvacina said a couple of hikes over the next 12 months should not derail the market, but a sustained move above 5% on the 10-year would be a risk.
Notable quotes
“The Supreme Court has rejected the president's bid to restrict mail ballots ahead of the midterm elections”
“And the Supreme Court today said no, they don't have to make those changes”
“It's a it's a hoax”
“An AI policy should be at the center of our public debate”
“if the 10-year really breaks out sustainably above 5%. Um, those are some risks, you know, to consider”
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'll have the latest on the artificial intelligence controversy around the world as well as new developments in the war in the Middle East. But we begin this morning with a legal setback for President Donald Trump. The Supreme Court has rejected the president's bid to restrict mail ballots ahead of the midterm elections.
The decision allows states to continue sending ballots under existing processes used by nearly one-third of voters. We get more from Bloomberg Supreme Court reporter Greg Store.
If you recall, about 3 weeks ago, the Supreme Court issued a preliminary order that basically said an earlier lawsuit challenging these rules had been filed too soon. And that set us off on this, you know, 3 weeks of uncertainty about whether states were going to have to make major changes to their mail ballot procedures in order to have those votes counted. And the Supreme Court today said no, they don't have to make those changes.
Now, this Bloomberg Supreme Court reporter Greg Store says the justice's decision comes after North Carolina and Alabama have already begun mailing thousands of ballots to voters, and many more states are prepared to do the same in the coming days.
Now to the latest from the Middle East. Nathan, Saudi Arabia is looking to boost oil supply through the straight of Hormuz after recent attacks force it to shut down its key east west pipeline. We get more from Bloomberg Middle East editor Patrick Sykes.
This is Saudi Arabia's main plan B uh as and when the straight of Homus gets shut and since the war started and that that vital waterway has been disrupted it's been the main sort of outlet along with um a similar pipeline um running to Fujira in the United Arab Emirates
And Bloomer's Patrick Sykes reports the pipeline will be out of service for several weeks according to the Associated Press though energy secretary Chris Wright told Bloomberg he expects it to be up up and running very soon.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- mail-in ballots
- postal service rules
- treasury yields
- fed rate outlook
- ai regulation
Companies and tickers mentioned
- OpenAI
- Anthropic PBC
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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