Jamie Dimon’s warning about market “cockroaches” and its implication for the $1.7 trillion private debt market isn’t sitting well with the other side of the street. The JPMorgan CEO’s comments came as investors seem increasingly spooked by the implosion of auto lender Tricolor Holdings and car-parts supplier First Brands Group, and the possibility that they are signs of more pain to come.

“When you see one cockroach, there are probably more,” Dimon said. But according to Blue Owl Capital Co-CEO Marc Lipschultz, it’s the banks that might want to look behind the refrigerator. Tying private credit to the fallout from those bankruptcies is an “odd kind of fear-mongering,” he said.

The clash comes at a time when “there’s land mines starting to go off everywhere,” said Akshay Shah, who runs distressed-debt firm Kyma Capital. “Marc is saying it’s in the banking corner, and Jamie might say it’s elsewhere. I would say it’s going off in both corners.” —David E. Rovella

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The six member Republican-appointed supermajority of the US Supreme Court on Wednesday telegraphed its intent to hand the Republican Party a potentially historic victory, one that in tandem with its current efforts to gerrymander away Democratic districts in red states may cement structural control of the House of Representatives for years or decades to come.

The court’s conservatives suggested during arguments that they will restrict the creation of majority-Black or Hispanic voting districts in a ruling that could effectively eviscerate much of what remains of a landmark civil rights law. The court, under the direction of Chief Justice John Roberts, has been chipping away at the Voting Rights Act for some time. A decision narrowing it further would be a boon for the GOP, given that the districts at issue tend to vote Democratic. Progressive groups say as many as 19 congressional districts with primarily Black or Hispanic populations are at risk, along with a much larger number of state and local districts.

US Supreme Court Chief Justice John Roberts Photographer: Al Drago/Bloomberg

Bloomberg Exclusive: Chinese state actors are said to have compromised classified UK government computer systems for more than a decade. China routinely accessed low and medium level classification information on UK government servers for at least the last 10 years, including information marked “official-sensitive” and “secret,” as well as some material on the government’s secure IT networks. The revelations come as Prime Minister Keir Starmer faces pressure over his policy toward Beijing in the wake of the aborted prosecution of two men accused of spying for China. 

Morgan Stanley stock trading performance soared past expectations in the third quarter, topping all of the bank’s largest rivals with revenue from the business surging 35% to $4.12 billion in the third quarter. That surpassed analyst estimates of a 6.6% increase and even beat Goldman Sachs’ $3.74 billion. Goldman in recent years dominated equity-trading, but under Chief Executive Officer Ted Pick, Morgan Stanley has been eager to regain the top spot.

A federal judge ordered the Trump administration to pause plans to fire thousands of federal workers during the government shutdown, just moments after White House Budget Director Russell Vought said he expects dismissals to exceed more than 10,000 people. Legal experts—including reportedly members of the administration— have said the terminations orchestrated by the Project 2025 co-author are likely illegal.

The ruling on Wednesday from US District Judge Susan Illston in San Francisco, a Democratic-appointee, follows layoff notices that have gone out to more than 4,100 federal employees since last week. Illston said during a Wednesday hearing that evidence suggests administration officials had “taken advantage” of the budget impasse in Congress to “assume that all bets are off,” and that “the laws don’t apply to them.” 

Canadian manufacturing sales fell 1% in August, while wholesale receipts dropped 1.2%, underscoring the impact of US tariffs on key trade-exposed sectors.  Lower sales of transportation equipment drove August’s manufacturing loss, Statistics Canada data showed Wednesday. Slumping receipts for motor vehicles and parts, as well as food and beverages, contributed to the declines among wholesalers.

Canada threatened legal action against Stellantis after the carmaker announced it’s canceling plans to make the Jeep Compass SUV in Brampton, Ontario, and moving production to Illinois instead. Industry Minister Melanie Joly said she would consider Stellantis in “default” in light of government support extended to the automaker and following its agreement to “maintain its full Canadian footprint, including Brampton.”

Canada helped bail out General Motors and Chrysler when both companies fell into financial distress during the global financial crisis. The federal and Ontario governments have also provided financial aid over the years to help automakers retool their assembly plants in southern Ontario, where factories are highly integrated with parts makers in the US and Canada. Stellantis and a partner are also behind NextStar Energy, a venture that’s building an electric vehicle battery plant that’s in line to receive huge government subsidies from Canada.

But the auto industry’s cross-border business model is under threat from Trump’s tariffs on foreign autos, which apply to Canadian and Mexican cars and light trucks. “We were there for the company in 2009 to pull it back from the brink of bankruptcy,” Joly wrote of Stellantis. “Now we expect you to be there for Canadians.”

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