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Good morning. Arnold Schwarzenegger might seem like the type of guy to crush protein shakes, but he told BI he follows a diet that's 70% plant-based.
In today's big story, it's payday for federal workers, but they'll be lighter than usual thanks to the ongoing government shutdown. Some of them told us how they're managing.
What's on deck:
Markets: An inside look at JPMorgan's new headquarters. (Thank you, TikTok.)
Tech: Google just pulled a U-turn following a BI report on a controversial policy tied to a third-party AI tool.
Business: The sights and scenes from Bari Weiss' big bash.
But first, the count is light.
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The big story
Payday panic
ANDREW CABALLERO-REYNOLDS/AFP via Getty Images
Not seeing the effects of the government shutdown yet? Federal workers are about to feel it in their wallets.
The 658,000 federal workers getting paid today are receiving lighter-than-normal checks thanks to the shutdown, and it's set to get worse. BI spoke to nearly a dozen workers in various departments who are either furloughed or working without pay.
These paychecks only include three days of missed pay from October 1, when the shutdown started, through October 3. But if things continue, it will only escalate.
On Tuesday, another 686,000 workers will receive partial paychecks. On Wednesday, 1.7 million military members will miss their entire paychecks.
One federal employee, who has worked in government for more than 30 years, told BI she won't be able to afford her medications if the shutdown continues. A NASA employee said some workers are likely to incur credit-card debt.
The White House, meanwhile, has maintained its stance that Democrats are holding things up.
"The Democrats' decision to shut down the government over free health care for illegal aliens is hurting all Americans," Abigail Jackson, a White House spokesperson, said in a statement to BI.
Reopening the government might not be the end of employees' problems.
Furloughed employees aren't necessarily guaranteed back pay, according to a draft memo from the Office of Management and Budget seen by Business Insider.
It's not clear if that's enforceable, as a 2019 law is widely understood to guarantee back pay following a government shutdown. And guidance last month from the White House Office of Personnel Management states, "retroactive pay will be provided on the earliest date possible."
If the White House were to withhold pay, the impact could go beyond just the workers.
USAA, a lender that caters to military, veterans, and their families, is offering interest-free loans equivalent to the paychecks of impacted federal workers. The bank approved and funded $85 million for roughly 23,000 loans during the first 24 hours the program was opened. Navy Federal Credit Union is also offering a similar program.
And it's not just banks helping to bridge the gap during the government shutdown, it's also … the government.
The Maryland Department of Labor's recently launched Federal Shutdown Loan program has already received more than 300 applications.
3 things in markets
Foster+Partners
1. The TikTok tour of JPMorgan's new HQ. As employees begin to fill up the 60-story, $3 billion Park Avenue skyscraper, a select few are sharing glimpses into their days in the office. See the food court, gym, and biometric scanning through their eyes.
2. The dollar's dominance is fine, actually. This year has been all about gold, with the precious metal rising 53% year-to-date. Its surge has prompted some concerns about the potential impacts on the dollar, though. Two stats illustrate why the greenback is still king.
3. The housing market is flashing a sign of distress. Foreclosure activity has been steadily rising recently. The number of homes filing for foreclosure spiked at 17% last quarter, according to data provider ATTOM. This uptick reflects both the high costs of homeownership and rising financial stress.
3 things in tech
Justin Sullivan/Getty
1. Google reverses course on its AI health policy. The tech giant is now saying employees aren't required to opt into sharing their personal data with a third-party AI tool after BI reported on employee backlash over the policy. Google said employees will still be eligible for health benefits regardless of whether they choose to opt in or not. Read more about Nayya, the startup caught in the middle.
2. Is legal tech too niche for its own good? Legal-tech startups have already raised $320 million this month. But some insiders are asking if general-purpose AI is "good enough" for legal work. For now, investors are hoping startups can out-specialize their all-purpose rivals.
3. Does it feel like everyone around you is using ChatGPT? Researchers from OpenAI, Duke, and Harvard said last month that ChatGPT had around 700 million monthly users, about 10% of the world's adult population. If Sam Altman has his way, that number will keep growing — he's been on a dealmaking tear that shows no signs of slowing.
3 things in business
Noam Galai/Stringer/Getty; Getty Images; Tyler Le/BI
1. Partying with Bari Weiss and Palmer Luckey. The Free Press founder celebrated her new position, editor in chief of CBS News, with a DC party populated by the free-thinking faithful. BI's Julia Hornstein observed lots of yacht rock, fruity cocktails, and at least one "Hot Girls for Capitalism" T-shirt.
2. The states withholding C-section data. Roughly 10% of pregnant women undergo a medically unnecessary cesarean section. The best way to avoid this is to choose a hospital with low C-section rates, experts say, but only 11 states make the data easily accessible, BI found. Healthcare providers, academics, and consumer advocates say states' decision to keep that information hidden deprives pregnant women of critical information about their healthcare.
3. Disney superfans aren't pressed about higher park prices. On the contrary, the Mature Mouseketeers say the price hikes are a good thing. They think higher prices will deter some visitors, creating less crowded parks. (And more runs on Space Mountain.)
In other news
David Ellison bought Paramount. Now it looks like Warner Bros. could be next on his list.
Sora 2 is drawing a huge crowd of teenage boys. This doesn't bode well — trust me.
Meta balked at turning over AI chatbot records in lawsuit, setting up court fight.
Disney salaries revealed: How much analysts, engineers, and more earn in 2025.
Reddit raids Madison Avenue with a key advertising hire.
Gen Alpha loves a photo dump — and a social media startup is looking to capitalize.
20 stocks are poised to spike this earnings season, Goldman Sachs says.
The CEO of 'AI companion' startup Replika is stepping aside to launch a new company.
PepsiCo's CEO says fiber will be the next protein.
What's happening today
- Nobel Peace Prize winner announced.NATO Parliamentary Assembly annual session.
Dan DeFrancesco, deputy executive editor and anchor, in New York. Meghan Morris, bureau chief, in Singapore. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York.
