Saudi-Led Forces Advance Against Houthis; Dalio Warns of Debt Crisis

SPEAKER_1 (0:02)

Bloomberg Audio Studios, podcasts, radio, news.

Nathan Hager (0:10)

Good morning, I'm Nathan Hager.

Karen Moskow (0:11)

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

Nathan Hager (0:15)

Karen, we begin in the Middle East in the fight for control of the key Bab al-Mandeb Strait. Yemen's internationally recognized government says it has regained control of the Red Sea city of Moqa from the Houthis. The Saudi-led coalition backing Yemen also says it destroyed a ballistic missile launcher in Yemen's capital Sana'a and destroyed military targets in a key port north of Bab al-Mandeb that the Houthis have held for more than a decade. We get the very latest from Bloomberg's head of Middle East coverage, Stuart Livingston Wallace.

Stuart Livingston Wallace (0:43)

You need to put in some caveats immediately. One is we're relying entirely here on the claims being made by the Yemeni government or the internationally recognized government.

Secondly, as we know from Russia, Ukraine, you know, front lines are always somewhat muddled and confused. And then the third thing is can they hold it? Because so far their track record in holding territory has been somewhat patchy.

Nathan Hager (1:04)

And Bloomberg's Stuart Livingston Wallace reports even if the coalition holds its territory, Bloomberg Economics estimates it is not likely to achieve its goal of eliminating the hoofies.

Karen Moskow (1:13)

Now let's get to the latest from the campaign trail. Nathan, four weeks until midterm election day, President Trump is making a bid to bring down fuel costs that have been rising due to the Iran War. He signed an executive order to allow more widespread use of a tax-exempt variety of diesel fuel, known as red dye diesel.

Donald Trump (1:32)

This order will also drive down the cost of all goods, including grocery prices, very substantially. And it's an honor to do it. And we're not going to need it long. I hope we're not going to need it long, because your prices are plummeting and they're going to really be plummeting just a little while.

Karen Moskow (1:47)

And President Trump signed the order in Grand Island, Nebraska, where Republican Senator Pete Ricketts is in a competitive race with independent Dan Osborne. The president won Nebraska by about 20 percentage points just two years ago.

Nathan Hager (2:00)

And as we get closer to the midterms, Karen, a new poll shows health care costs rank near the top of voters' economic concerns. Bloomberg's Courtney Donahoe has the latest.

Courtney Donahoe (2:10)

With a month to go before the midterms, the poll finds six in ten voters say they were very or somewhat worried about affording health care, outranking concerns over food, utilities and housing. The findings by KFF, which is a nonpartisan health policy research group, also show 42 percent say they trusted Democrats to do a better job of handling health care costs, while 22 percent chose Republicans. Two-thirds of respondents supported a national health plan or Medicare for all.

Recent changes have fueled anxiety around health care. Affordable Care Act Marketplace enrollment dropped by about four million people this year, after Congress declined to extend enhanced subsidies. Americans with ACA plans are paying 20 percent more than 2025, and premiums are expected to jump double digits next year. Courtney Donahoe, Bloomberg Radio.

Karen Moskow (3:01)

All right, Courtney, thank you. One other political note here. President Trump now says he'll pay for video ads with his personal funds and through his Political Action Committee. The president made the pledge on truth social after ethical concerns were raised about an ad paid for by the US government that featured positive images of him and a voiceover saying a golden age for the US has begun. The White House had previously defended the ad as a public service announcement and noted that President Trump is not on the ballot. But Democrats and the watchdog group Public Citizens say the video could violate laws against using federal funds for publicity or propaganda purposes.

Nathan Hager (3:37)

The Supreme Court, Karen, is considering whether to allow state and local lawsuits blaming oil companies for climate change. And several justices suggested they're open to letting at least a narrow class of claims go forward. Bloomberg's Amy Morris reports from Washington.

Amy Morris (3:51)

Justice Brett Kavanaugh questioned one attorney on who gets to regulate environmental issues.

Brett Kavanaugh (3:56)

We have four precedents. Make crystal clear that interstate air and water pollution are matters for federal law unless Congress specifically preserves state law.

Amy Morris (4:08)

Justice Elena Kagan seemed skeptical of the attorney's legal theories.

Elena Kagan (4:11)

One theory is about air and water regulation and who gets to do that. And another theory sets out broad principles of who can do what extraterritorially with respect to any subject.