Bloomberg Daybreak: Europe Edition US Shutdown Begins As Stocks Drop & Gold Rallies On Funding Standoff
Oct 1, 2025
Derek Wolbank, Senior U.S. government editor at Bloomberg, provides sharp insights into the political chaos surrounding the U.S. government shutdown. He delves into how the impasse over healthcare funding led to a standstill, potentially disrupting vital services including visas and passport processing. Wolbank also assesses the fallout for federal workers and the political repercussions for both parties. Amidst this, market reactions see gold prices skyrocket, as uncertainty looms over delayed economic data.
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Gold Rallies As Stocks Slip
- Markets showed immediate reactions: S&P and Nasdaq futures fell while gold hit new records and the dollar weakened.
- Asian shares were also down, reflecting global concern over the US funding lapse.
Negotiations Broke Down In Acrimony
- Negotiations showed almost no progress ahead of the deadline amid deep mistrust between parties.
- Acrimony and social-media attacks marked the final hours rather than last-minute compromise.
Plan For Essential Versus Furloughed Services
- Expect a 60-40 split between essential functions that continue and nonessential staff who are furloughed.
- Prepare for furloughed employees to miss paychecks until funding resumes.