US Flights Cut as Shutdown Drags On; Musk's $1T Tesla Pay Package Approved

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This is serious. It's one more step in the wrong direction for us. The American people expect us to have the aircraft run on time. They expect the trains to run on time. They expect us to actually have government operating. Republican Senator Mike Rounds appeared on Bloomberg's balance of power. You can get the full conversation on the Bloomberg podcast channel on YouTube. The top Democrat on the House Transportation Committee, Rick Larson, is calling on the FAA to share its risk assessment to ensure the flight cuts aren't political. motivated. Well, another major story that we're following, Nathan, involves Elon Musk. Tesla shareholders have approved his $1 trillion compensation package, and we get more from Bloomberg Transportation Reporter Danny Lee. This ultimately means that shareholders have given Elon Musk and Tesla. their full backing for Elon Musk to do whatever he needs to do to drive the company forward. And of course, we are seeing this transition of Tesla from just an EV maker to one that Elon Musk wants to take it into, to robotics, to artificial intelligence and a driverless future. So there's a lot at stake here. And of course, for Elon Musk, he doesn't automatically get this trillion dollars. He has a series of very lofty goals and hurdles. He needs to pass financially. in terms of the valuation of Tesla, and also operationally in delivering, for example, 20 million vehicles and selling a million robots and driverless cars in order to hit some of these extremely stretched goals. And Bloomberg Transportation reporter Danny Lee says this is the largest payout ever awarded to a corporate leader and shares of Tesla are up about 1% this morning. And we're also watching shares of Nvidia this morning, Karen. They're up to 10th percent after yesterday's 3.7% sell-off. This morning, NVIDIA CEO Jensen Wong says his company has no plans to ship its Blackwell AI chips to China. Huang is in Taiwan this morning. He says it's up to China when they would like NVIDIA products to go back to serve their money. market. Meanwhile, the information is reporting that the White House has told others in the federal government it will not allow NVIDIA to sell its latest scaled down AI chips to China either. Well, Nathan exports from China unexpectedly dropped in October for the first time in eight months. They contracted by 1.1% in October from a year earlier. Global demand failed to offset a slump in shipments to the U.S. began more from Bloomberg News Chief Asia correspondent Rosalind Matheson. Well, there's likely to be quite a lot of volatility still going forward. I mean, we've had quite a bit of front loading that went on, which really propelled exports from China through most of this year. Even though we do have a truce in trade, we've got big questions about whether Donald Trump's tariffs stay at all. So for a lot of companies and countries still a fair bit of uncertainty, including for China, about what the next six months are going to look like. And Bloomberg's Ross Madison says shipments to all nations except the U.S. rose 3.1 percent. That was not enough to compensate for the more than 25 percent decline to America. Well, Karen, the makers of Blockbuster Weight Loss drugs have secured a big deal at the White House. Eli Lilly and Nova Nordisk have agreed to slash the prices on their popular Zepbound and Wagovi shots in exchange for tariff relief and wider access to Medicare. As heard live here on Bloomberg Radio, President Trump made the announcement in the Oval Office.

For years, politicians have talked about making health care affordable, but my administration is actually doing it. Americans deserve the best health care in the world. And we're now getting the best health care at the lowest price. And under the deal with President Trump, the prices of Wagovi and Zepbound under Medicare will be $245 a month. The drugs currently list at more than 1,000. In return, Lillian Novo get a three-year grace period from upcoming tariffs on pharmaceutical companies that don't manufacture in the U.S. We spoke with Nova Nordisk CEO, Mike Dustar. We are more American than many companies that were born in USA. And the reason I say that is that long before many American companies started to think of developing and producing their raw ingredient in U.S., we were there doing that. Nova Nordisk's Mike Duesdar, the Danish drugmaker has pledged billions in U.S. investment, including a $4.1 billion factory expansion that began last year in North Carolina. Well, we turn to the markets now, Nathan, where futures are higher. After another sell-off on Wall Street, the S&P 500 has dropped more than 1% twice this week, as some of big tax AI spending has spooked some investors. David Chad Bianco is chief investment officer at DWS Group. The valuations are very demanding, yet we understand why. And we're taking a constructive view on tech and communications and all that. But our preferences are our financials, healthcare, and electric utilities, because power is still a really important part of the AI story. DWS Group's David Chad Bianco. The S&P 500 is up 14% so far this year, while the NASDAQ is higher by 19%. In Europe, Karen, shares of the owner of British Airways are flying lower. IAG says it's all-important North Atlantic route experienced some weakness in the third quarter, and that weighed on earnings that missed estimates. The results have led the stock to drop the most since April. This morning, IAG is down almost 7%. Nathan Comcast, owner of the European Paid Television Service Sky, is in talks to buy ITV's Media and Entertainment Unit in a deal that would dramatically shake up the UK broadcasting landscape. The business, to be acquired, runs ITV's commercial free-to-air TV channel operations in the UK as well as the ITVX streaming platform. If a deal goes ahead, it would leave ITV with its studios division, which produces shows such as Britain's Got Talent and Love I. Island. Well, Karen, Apple's streaming service suffered an outage on the premiere of its new series, Pluribus. Users across the U.S. and Canada reported the service crashing from around 1030 Eastern last night, not long after the first two episodes of the new drama were made available to stream. Apple says the matter was resolved within about an hour and a half.

Thanks, Monica. Time now for our Bloomberg Sports Update, and for that we bring in John Stashauer. Thanks, Karen. A defensive battle that began week 10 in the NFL in Denver. The Broncos didn't get a first down for the first 24 minutes. They didn't get a touchdown until late second quarter. They added a field goal late third, and they beat the Raiders 10 to 7. And Denver at 8 and 2 has the best record in the NFL. Broncos have won 7 straight to 5 and 0 at home. 41-year-old Craig Stammon named the new manager of the San Diego Padres. former Padres relief pitcher, the Dodgers picked up the $10 million option for Max Muncie. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions, buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English, like if the VIX hits 25, buy a put option on the S&P 500, or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by Public Investing. Brokred services by Open to the Public Investing, Inc., member FINRA and SIPC. Advisory services by Public Advisors LLC, SEC registered advisor. Complete disclosures available at public.com slash disclosures. This is Tony A.O. from The Real Report with Tony A.O. and Uncle Murder. You ever notice how everything keeps going up, rents going up? Streaming services are going up. Even your favorite burrito spot suddenly thinks salsa should cost extra. But with Boost Mobile, you and your phone bill don't have to play the Willis Go Up Soon game because Boost Mobile has an unlimited talk, text, and data plan at a price that'll never go up. It's the same price you'll pay for life, meaning you're said to never worry about your bill increasing again for as long as you're on the plan. While the world keeps finding new ways, to nickel and dime you, Boost Mobile gives you unlimited wireless at one set price for life. Imagine something in your budget actually staying the same. You'll pay the same for unlimited wireless when you're posting mirror selfies in your 20s and when you're posting mirror selfies in retirement. Some things never change. Switch now for unlimited wireless at a price that will never go up, only at Boost Mobile. After 30 gigabytes, customers may experience slower speeds. Customers will pay $25 a month as long as they remain active on a boost. unlimited plan. Amazon Health AI presents painful thoughts. Why did I search the internet for answers to my cold sore problem? Now I'm stuck down a rabbit hole filled with images of alarmingly graphic sores in various stages of ooze. I can clear my search history, but I can never unsee that.

Don't go down the rabbit hole. Amazon Health AI gets you the right care fast. Health care just got less painful. Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. He's already the world's richest man, and if he plays his cards right, he could be the world's first trillionaire. Tesla shareholders have overwhelmingly approved a 12-figure pay package for the electric vehicle CEO Elon Musk. But for ArkInvest CEO Kathy Wood, it's not just about the EVs. We think robotaxies, he has them at the starting gate as of June, and now they're rolling out, and that AI project. is well underway. That was Arc Invest CEO and Tesla investor. Kathy Wood ahead of the vote at Tesla's annual meeting. And joining us for more as Bloomberg News Global Auto's editor, Craig Trudell. And Craig, it really is in a lot of ways about the autonomous robotics vision more than the electric vehicle. So do we have to start thinking about this company is more than just an EV maker? Good morning. Yeah, good morning. I think that at least is the narrative Elon Musk wants out there. And this has been a trend for some time where he's been talking more and more about his humanoid robots as opposed to his cars. You know, I think the cynic would say that that would probably be explained by the fact that the car business has been slowing down pretty dramatically for the company for some time now. But, you know, in addition to talking up the prospects for robots last night, he also talked about. about expanding production of Tesla's vehicles next year, including with the cyber cab. And interestingly, just last week, we spoke with the chair of the board, Robin Denholm, about the notion that while the cyber cab was designed without pedals or a steering wheel, you know, the company has maybe some flexibility and some willingness to, in the event that regulators say, you know what, we're just not ready for you to put fully autonomous vehicles on the road yet. She told us that... they would be willing to put, you know, steering wheel and pedals in those cars in order to be able to sell them. So, Craig, walk us through some of these benchmarks that Elon Musk has to achieve in order to get to that trillion dollar level. What's it going to take? And how high is the bar? Yeah, the bar is very high to hit, you know, to get the full payout. You know, the... market cap of the company today is around $1.5 trillion. He would need to take it to $8.5 trillion to get the full slug of shares that this pay package includes. But in addition to that, he needs to achieve a series of performance milestones that are more operational. So, you know, some are on the sort of easier side in terms of, you know, 20 million vehicles on the road. That sounds like a lot, but it's cumulative.

And this is a pay package that he's eligible to receive over the next decade. The other sort of, you know, operational targets include adjusted EBITDA all the way up to 400 billion. And this is a company that, you know, is on course for, give or take, about 13 billion in adjusted EBITDA this year. So we're talking many multiples of what the company is earning here and now. Got about a minute left, Craig. Elon Musk has won past compensation fights. The company says more than 75% of votes cast went his way. Should we be surprised by that margin? I wasn't surprised. I think, you know, there were some major institutional shareholders who have balked at these pay packages in the past, but the retail shareholder base for Tesla is extremely, extremely loyal to Elon Musk. And I think an important little bit of context here, too, is that Elon Musk and his brother Kimball's shares counted toward that 75%. And so, you know, when you consider the fairly substantial stake that Elon Musk already has, you know, the sort of bar for him to clear 50%, you know, was not necessarily all that high. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify or anywhere else you listen. You can also listen live each morning, starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 991 in Washington, Bloomberg 929 in Boston, and nationwide on Sirius XM Channel 121. Plus listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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