Pentagon Deploys More Troops to Middle East; September Jobs Report

SPEAKER_1 (0:02)

Bloomberg Audio Studios, podcasts, radio, news.

John Tucker (0:10)

Good morning, I'm John Tucker.

Karen Moskow (0:11)

And I'm Karen Moskow. Here are the stories we're following today.

We begin with new developments in the Middle East. A US official says the Pentagon is deploying an additional aircraft carrier and 10,000 sailors and marines to the Persian Gulf. It's a move that gives American commanders more options if President Trump chooses to escalate attacks on Iran. We get more from Bloomberg Managing Editor for the Middle East, Paul Wallace.

Paul Wallace (0:34)

At the very least, it's keeping the pressure on Iran and showing that the US is still willing to escalate hostilities and to use large amounts of firepower against it if the talks continue to go nowhere. And on the diplomatic side, that's what our reporting has been telling us over recent weeks, that despite the US and Iran holding discussions on the sidelines of the UN General Assembly in New York last week, that there was really little progress made between the two sides. They're still deadlocked.

Karen Moskow (1:07)

And Bloomberg's Paul Wallace reports, a US official says the USS Theodore Roosevelt has left at San Diego home port. When it arrives, the US could again have three carrier strike groups in the region, the same number as in late April.

John Tucker (1:21)

And President Trump says if Iran is linked to the copilot who tried to crash an Israel bound flight, the Islamic Republic will be struck, in his words, very hard. Trump issuing the warning, his investigators work to determine why the copilot stabbed the flight's captain, causing the Fly Dubai plane to plummet before others on board stopped the attack and landed the airliner in Saudi Arabia.

Karen Moskow (1:43)

Meanwhile, John, President Trump is hitting the campaign trail. He was in Texas and Oklahoma, states he carried handily in his three presidential campaigns, which are now home to competitive Senate and gubernatorial races. Trump is predicting that Democrats would impeach him for a third time if they retake control of Congress.

Donald Trump (2:02)

And in this election, I'm asking you to just see what happened.

Paul Wallace (2:05)

We do great when I'm on the ballot.

SPEAKER_6 (2:07)

When I'm not on the ballot, people don't go and vote so much.

Mike McKee (2:10)

Pretend I'm running, please.

SPEAKER_6 (2:12)

Just pretend.

Karen Moskow (2:14)

And the president will visit Alabama today and Ohio tomorrow.

John Tucker (2:17)

Let's turn to the markets, Karen. In September, futures are higher ahead of the Key Jobs Report for the month of September. Economists forecasting non-farm payrolls rose 90,000 last month after climbing in August by the most since March. Let's get a preview from Bloomberg's Mike McKee.

Mike McKee (2:32)

Most investors will focus first on the number of jobs created in September, but unless there's a surprise, it shouldn't differ much from the previous few months. For the Fed, the unemployment rate is the key data point, a measure of how the overall economy is doing, and there too, little to no change is expected Let's.

What is the labor market?

The labor market is not seen as a problem. What would worry the Fed is if there's any significant increase in average hourly earnings. Those have been dropping, but with the labor force showing signs of contracting, at some point, companies may have to pay up to find workers. That could be inflationary. Michael McKee, Bloomberg Radio.

John Tucker (3:11)

Thanks, Mike, and for full coverage of the jobs report and context around the day to join Bloomberg surveillance, the numbers cross at 830 Wall Street time on Bloomberg Radio and the Bloomberg Business app.

Karen Moskow (3:22)

Well, John, after a week in which markets were lashed by sharp swings in yields, things have steadied this morning. Investors lashed on to some dovish comments from Federal Reserve officials. Two-year US Treasury yields fell yesterday by about 10 basis points to below 4.8 percent, and that dragged yields on 10-year Treasuries back from a 24-year high.

John Tucker (3:42)

And a sell-off in global debt, that has fueled a route that's hitting harder and faster in France than anybody expected. Nerves are fraying about missed deficit targets, policy gridlock and presidential elections next year that could radically alter that country's direction.

France's 10-year yield has surged more than one percentage point since June, its worst quarterly performance since the birth of the single currency.

Karen Moskow (4:06)

Let's take a look at some company news here, John, because shares of Nike, they're running lower. They're down more than 10 percent this morning. The sportswear company posted weaker than expected sales for the latest quarter and a disappointing outlook for fiscal 2027 As a result, Nike is cutting jobs and embarking on a sweeping overhaul of its business as results deteriorate.