Plus, US government shutdown begins.

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Daily Briefing

Daily Briefing

By Kate Turton

Hello, today is International Coffee Day so brew yourself a cup before you get into the news. 

The US government shutdown is the main story of the day, but we also visit the dread-filled cities on Ukraine's frontlines and meet the Silicon Valley 'warlord' who got the Pentagon’s attention.

 

Today's Top News

 

A US flag is illuminated in a doorway of the otherwise empty rotunda at the Capitol, Washington, D.C. REUTERS/Jonathan Ernst

United States

  • The US government shut down much of its operations as deep partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs. Follow our live updates.
  • Defense Secretary Pete Hegseth told a rare gathering of commanders they should resign if they do not support his agenda. Meanwhile, President Donald Trump floated the idea of using deployments to US cities as "as training grounds for our military". Reporter Idrees Ali tells the Reuters World News podcast why that's "scary" for many Americans.

In other news

  • Pope Leo appeared to offer his strongest criticism yet of Trump's hard-line immigration policies, questioning whether they were in line with the Catholic Church's pro-life teachings.
  • Hamas's review of Trump's Gaza plan stretched into a third day, a source close to the militant group said, as other Palestinian factions rejected the proposal. The international flotilla trying to deliver aid to Gaza said unidentified vessels approached some of its boats as it got closer to a zone where Israel has imposed a naval blockade on the war-stricken strip.
  • The death toll from a 6.9-magnitude earthquake that hit the central Philippines rose to 69, a disaster official said, as authorities mounted a rescue effort to find survivors after one of the country's strongest quakes in a decade.
  • European Union leaders will discuss proposals for a "drone wall" to protect the continent at a summit in Copenhagen, just days after airspace intrusions by unidentified unmanned aircraft forced a temporary closure of Danish airports.
  • The Oktoberfest beer festival in Munich will remain shut after police said they discovered explosives in a residential building in the north of the city that caught fire and left one person dead.
 

Business & Markets

 

Steven Simon looks at a circuit board at ACS headquarters in Austin, Texas, August 18, 2025. REUTERS/David Jeans

  • A little more than a year ago, Steve Simoni was a typical Silicon Valley success story who sold a payments company to DoorDash. Now he is a co-founder of a company that makes an AI-powered weapon designed to shoot drones out of the sky.
  • In India, Bollywood stars are asking judges to protect their voice and persona in the era of artificial intelligence. One famous couple's biggest target is Google's video arm YouTube.
  • Trump's import tariffs have breathed life into dormant free trade talks across the globe and driven alliances at an unrivalled pace between partners seeking to offset lost exports to the US. Watch our daily market rundown for more. Sign up for the Reuters Tariff Watch newsletter here.
  • The US Transportation Department said more than 11,000 employees at the Federal Aviation Administration, about a quarter of its staff, would be furloughed if government funding lapses.
  • Pfizer and Trump said they had cut a deal in which the US-based drugmaker agreed to lower prescription drug prices in the Medicaid program to what it charges in other developed countries, in exchange for tariff relief.
  • Tesla has raised lease prices for all its vehicles in the US after a $7,500 federal tax credit that helped boost electric vehicle sales expired, according to the company's website.
 

Ukraine’s frontline cities filled with dread and defiance

 

An apartment building destroyed by a Russian missile in July in the Ukrainian frontline city of Kramatorsk. REUTERS/Thomas Peter

Reuters travelled to the frontline cities of Kramatorsk and Sloviansk where Russian kamikaze drones hover in the skies looking for targets. Tens of thousands of people still living in these cities grapple with the choice: Do I stay or do I go?

Read more
 

And Finally...

Arnold Schwarzenegger arrives to attend a Vatican press conference about climate change, September 30, 2025. REUTERS/Remo Casilli 

Arnold Schwarzenegger came to the Vatican to throw his weight behind Pope Leo's efforts to encourage world leaders to address global climate change and transition away from fossil fuels.

Read more