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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here

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Speaker 2: are the top stories we're following today.

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Speaker 3: Lisa, we are just hours away from the key event.

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Speaker 4: Wall Street has been waiting for the speech from FED

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Speaker 4: chair j Powell at Jackson Hall. The White House has

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Speaker 4: been pressuring Powell to cut rates for months amid a

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Speaker 4: weakening labor market, but questions remain about the impact tariffs

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Speaker 4: will have on inflation. Bloomberg's Michael McKee is in Jackson

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Speaker 4: Hall covering Powell and the annual FED conference.

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Speaker 5: Last year, Chairman Powell said that he thought it was

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Speaker 5: time the interest rates started to go down, and then

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Speaker 5: he delivered in September when they made a fifty basis

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Speaker 5: point cut. He's not expected to say that here this year.

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Speaker 5: He's expected to talk about the fact that the economy

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Speaker 5: is slowing on the employment side, but there are some

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Speaker 5: worrying signs of inflation, and since those were require two

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Speaker 5: different ways of responding by monetary policy, the FED would

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Speaker 5: prefer to wait and get as much data and information

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Speaker 5: as possible, which means they'll wait till after the next

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Speaker 5: employment report and the next CPI report before settling on

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Speaker 5: the best course of action.

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Speaker 4: Bloomberg's Michael McKee part of our special Jackson Hole coverage.

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Speaker 4: He'll join Tom Keen and Lisa Abromowitz for a special

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Speaker 4: edition of Bloomberg Surveillance this morning at nine am Eastern Time,

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Speaker 4: and they will bring you FED share Jpowell speech live

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Speaker 4: that happens at ten am, and you can catch it

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Speaker 4: all on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast

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Speaker 4: channel on YouTube.

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Speaker 2: Well Nathan. Several former FED officials are weighing into the

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Speaker 2: Fed's next move. Robert Kaplan is the former Dallas FED

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Speaker 2: president and vice chairman of Goldman Sachs.

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Speaker 6: If the job market were stronger, I think it would

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Speaker 6: be clearer to be more be patient and wait to

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Speaker 6: see how the inflation is going to unfold, and be

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Speaker 6: more patient to see a trend for further down toward target.

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Speaker 6: But I think with this weekending the labor markets, it's

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Speaker 6: going to push the FED I think to be more

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Speaker 6: forward leading and maybe do an adjustment in September. But

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Speaker 6: the caution I would give if they do move in September,

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Speaker 6: I don't think that's the start of a cycle.

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Speaker 2: I was former Dallas FED President Robert Kaplan. Now the

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Speaker 2: interest rate market shows about a seventy percent chance of

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Speaker 2: a quarter point cut at the September meeting and close

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Speaker 2: to fifty basis points of easing for the entire year.

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Speaker 4: Oh well, we wait to see whether those bets get refined.

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Speaker 4: Following Chairman Powell speech, Lisa pressure is building on one

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Speaker 4: of the Fed's board members. Federal Housing Finance Agency Director

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Speaker 4: Bill Poulti says he will make a new statement on

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Speaker 4: new evidence against FED Governor Lisa Cook this morning at

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Speaker 4: nine thirty am Wall Street Time. Paulty announced that on

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Speaker 4: x this morning, a day after the Justice Department urged

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Speaker 4: Powell to remove Governor Cook from the board as it

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Speaker 4: signals plans to investigate her for alleged mortgage fraud. Poulty

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Speaker 4: tells Bloomberg he referred to Cook's case to the DOJ

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Speaker 4: is part of a broader crackdown on the issue.

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Speaker 7: We refer people almost every day. I refer people every

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Speaker 7: week on a minimum, to the Department of Justice for

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Speaker 7: mortgage fraud. This is literally what I am required to

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Speaker 7: do underneath the Housing and Economic Recovery Act of two

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Speaker 7: thousand and eight, which is to ensure the safety and

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Speaker 7: soundness of the mortgage market.

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Speaker 4: You can watch our full conversation with FHFA director Bill

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Speaker 4: Polti on the Bloomberg Podcast YouTube channel.

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Speaker 3: Now Bloomberg has reached out to Governor Cook.

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Speaker 4: She has declined our requests for an interview, but in

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Speaker 4: a statement, she says she won't be bullied into stepping down,

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Speaker 4: but intends to take questions about her financial history seriously.

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Speaker 2: Talks continue at the White House Nathan on taking a

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Speaker 2: ten percent stake in Intel to shore up the struggling

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Speaker 2: US chip maker. Now Bloomberg News has learned that Trump

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Speaker 2: administration will not pursue equity stakes and other semiconductor manufacturers

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Speaker 2: that are boosting investment in the US, like Micron Technology

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Speaker 2: and Taiwan's Semiconductor. Now fill moves in the White House

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Speaker 2: to take a cut of Nvidia chip sales in China

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Speaker 2: and to pursue a so called golden share in US steel.

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Speaker 2: Former Vice President Mike Penn says President Trump should reconsider

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Speaker 2: the whole strategy.

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Speaker 8: State owned enterprise is not the American way. Free enterprise

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Speaker 8: is the American way, and a refereed private sector with

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Speaker 8: less taxes and less regulation has created the most prosperous

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Speaker 8: economy in the history of the world, and if we

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Speaker 8: stay on that path, that'll always be true.

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Speaker 2: Former Vice President Mike Pence with a guest on Bloomberg's

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Speaker 2: Balance of Power. You can also get that full conversation

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Speaker 2: on the Bloomberg Podcast YouTube channel.

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Speaker 4: Well Staying in the chip texter Lisa In, Nvidia reportedly

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Speaker 4: told its component suppliers to halt production of its H

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Speaker 4: twenty AI chip that's designed for the Chinese market. According

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Speaker 4: to the Information, in Vidia issued that order this week

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Speaker 4: after Beijing urged local firms to avoid using those Nvidia chips.

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Speaker 4: CEO Jensen Wong says his company is in talks with

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Speaker 4: Beijing US government.

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Speaker 9: The Trump administration has approved of licenses for US to

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Speaker 9: export age.

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Speaker 3: Toities to China.

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Speaker 10: Recently, China asked some questions about some.

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Speaker 3: Security back doors in our ships.

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Speaker 6: We have made it very clear and put to rest

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Speaker 6: that H twenty has no security backdoors.

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Speaker 3: That was Nvidia CEO Jensen Wong.

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Speaker 4: The Age twenty is a less powerful version of the

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Speaker 4: company's cutting edge AI accelerators. It was designed to comply

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Speaker 4: with US export controls.

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Speaker 2: Well well Mark News has learned two tech behemoths are

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Speaker 2: hooking up on an artificial intelligence related deal. Let's get

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Speaker 2: the very re lated from Bloomberg's John Tucker. Good Morning, John,

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Speaker 2: and Lisa.

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Speaker 11: Meta Platforms has agreed to a deal with alphabetz Google

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Speaker 11: for cloud computing services. That's the first major cloud computing

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Speaker 11: deal between Meta and Google. Meta CEO Mark Zuckerberg has

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Speaker 11: pledged to spend hundreds of billions of dollars on AI

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Speaker 11: and the infrastructure needed to support howard It, the Facebook

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Speaker 11: and Instagram parent company, will pay a minimum of ten

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Speaker 11: billion dollars over six years to use Google's cloud servers

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Speaker 11: and storage, and an effort to quickly bring online more

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Speaker 11: computing power as it competes in the race to offer

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Speaker 11: users AI tools. Zuckerberg is seeking to amass the most

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Speaker 11: computing power per AI researcher, and he wants to do

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Speaker 11: it quickly. You know you, York, Come John Tucker, Bloomberg Radio.

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Speaker 4: Okay, John, thank you. Mark Zuckerberg was almost involved in

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Speaker 4: another big deal. According to a court filing, Elon Musk

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Speaker 4: tried to enlist the Meta CEO for his unsolicited bid

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Speaker 4: for Open Ai this year. Zuckerberg was one of the

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Speaker 4: people with whom must communicate it about potentially financing a

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Speaker 4: deal to purchase the maker of Chat GPT. In the filing,

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Speaker 4: OpenAI says neither Zuckerberg nor Meta signed the letter of

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Speaker 4: intent or participated in the ninety seven billion dollar bid.

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Speaker 2: Well more news out of Meta this morning, Nathan the

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Speaker 2: company is hiring another key Apple artificial intelligence executive, and

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Speaker 2: this is even as the social networking company prepares a

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Speaker 2: slow wits recruitment. In a Bloomberg exclusive, sources a Frank Chu,

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Speaker 2: who has led Apple AI teams focused on cloud infrastructure,

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Speaker 2: will be joining Meta super Intelligence Labs, and the executive

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Speaker 2: is following several of his colleagues to Meta, which also

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Speaker 2: hired the head of Apple's AI models team.

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Speaker 4: Meantime, Lisa China is accusing the US of quote threatening

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Speaker 4: world peace before it hosts a gathering of global leaders.

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Speaker 4: More than twenty of them are set to attend the

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Speaker 4: annual summit of the Shanghai Cooperation Organization, which is a

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Speaker 4: block of countries led by Russia and China. Chinese Assistant

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Speaker 4: Foreign Minister Liu Binn framed the gathering as a break

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Speaker 4: with the ethos of a quote certain country that quote

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Speaker 4: seeks to put its national interest above the interest of others.

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Speaker 4: US was never invited to be part of the group

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Speaker 4: that was initially seen in the West as a China

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Speaker 4: backed Eastern counterweight to NATO.

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Speaker 2: It is time now for a look at some of

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Speaker 2: the other stories making news in New York and around

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Speaker 2: the world. For that, we're joined by Bloomberg's Michael bar

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Speaker 2: Good morning, Michael.

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Speaker 12: Good morning, Lisa. Governor Phil Murphy says a state of

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Speaker 12: emergency remains for New Jersey as Hurricane Erin battered coastal

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Speaker 12: communities with strong winds, waves, and life threatening rip currents.

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Speaker 12: Governor Murphy says absolutely no one should be in the

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Speaker 12: coastal waters today. Aaron flooded streets and eroded beaches in

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Speaker 12: parts of the Jersey Shore and Long Island. High serve

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Speaker 12: advisories for five to seven feet are in effect. Bloomberg

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Speaker 12: Meeting religious Craig Allen has more.

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Speaker 13: Erin is now about five hundred miles away from Halifax,

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Speaker 13: Nova Scotia, but still has hurricane force winds one hundred

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Speaker 13: five miles outside of the center and tropical storm force

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Speaker 13: winds three hundred and twenty miles from the center, and

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Speaker 13: so the ocean continues to be very roughed up, and

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Speaker 13: I would bet that there will continue to be red

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Speaker 13: flags flying right through the day today, even though the

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Speaker 13: weather itself is going to be pretty nice.

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Speaker 12: Bloomberg Meeting religious Craig Allen, one of the two Menendez brothers,

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Speaker 12: was denied parole on Thursday from murdering his parents thirty

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Speaker 12: six years ago in California. It is keeping Eric Menndez

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Speaker 12: behind bars for at least another three years. Today, Lyle

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Speaker 12: Menendez will appear before the parole board. President Trump visited

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Speaker 12: with police and National Guard units that are patrolling Washington, DC.

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Speaker 10: Well, I just want to thank everybody very much for

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Speaker 10: being here. I wanted to do this. We've had some

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Speaker 10: incredible results and results have come out, and it's like

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Speaker 10: a different place. It's like a different city. It's the capital.

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Speaker 10: It's going to be the best in the world.

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Speaker 12: In a radio interview earlier Thursday, President Trump said he

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Speaker 12: would be going out tonight with the law enforcement and military,

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Speaker 12: but he returned to the White House after the visit

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Speaker 12: to the facility. Global News twenty four hours a day

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Speaker 12: and whenever you want it with Bloomberg News. Now, michae L.

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Speaker 3: Barn this is Bloomberg Time.

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Speaker 4: Now for our Bloomberg Sports update, and for that we

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Speaker 4: bring in John Stashauwer, Thanks Nathan.

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Speaker 14: Tour Championship Golf Underwagh in Atlanta. Of the thirty players

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Speaker 14: going for the ten million dollar first place prize, nobody

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Speaker 14: played like Russell Henley seven birdies and eagle, no bogies,

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Speaker 14: a nine under sixty one and a two shot lead

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Speaker 14: on Scottie Scheffler. Five others trail by three. Rory McElroy

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Speaker 14: trails by five. Dodgers and Padres both won ALA at Colorado.

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Speaker 14: Clayton Chrishall went to eight and two. San Diego beat

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Speaker 14: the Giants Justin Verlanderfelder one and ten. Dodgers leave the

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Speaker 14: NL West by one game. That's your Bloomberg Sports Update.

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Speaker 3: Stay with us. More from Bloomberg Daybreak coming up after.

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Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Serious

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Speaker 1: Exam and around the world on Bloomberg dot Com and

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Speaker 1: the Bloomberg Business opp This is Bloomberg Daybreak.

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Speaker 4: Good morning, I'm Nathan Hager with the countdown on to J.

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Speaker 4: Powell's speech at the FED Symposium in Jackson Hole, Wyoming.

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Speaker 4: His chance to give clues on the policy path for

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Speaker 4: his final nine months as chair to cement his legacy

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Speaker 4: as he continues to face relentless criticism from the White

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Speaker 4: House over interest rates. Ahead of the keynote address, we're

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Speaker 4: very pleased to be joined this morning by Sarah House,

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Speaker 4: senior economists at Wells Fargo. Sarah, it's great to have

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Speaker 4: you with us on Jackson Hole Day. Do you expect

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Speaker 4: Chairman pal either to give more clues on the policy

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Speaker 4: path or to address that pressure he's under.

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Speaker 3: Good morning, Good morning, Nathan.

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Speaker 9: So we're not expecting an explicit hint that what the

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Speaker 9: FED will do at the September meeting. So this is

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Speaker 9: not like last year where I think there was pretty

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Speaker 9: broad consensus that the Fed was needing to pivot. So

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Speaker 9: the committee still remains very split, as we saw within

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Speaker 9: the minutes, but also just some of the recent FED speak,

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Speaker 9: and then I think the recent data we had even

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Speaker 9: since the minutes, it didn't resolve that split. So yes,

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Speaker 9: you had the much weaker payrolls numbers, but then you

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Speaker 9: also had signed of inflation being more persistent, just based

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Speaker 9: on the mix of the recent inflation readings. So I

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Speaker 9: think going to want to keep his options open where

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Speaker 9: we still have another month's worth of data before that

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Speaker 9: September meeting.

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Speaker 4: Could there be some addressing of that split? As you say,

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Speaker 4: we have seen a very divergent view starting to come

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Speaker 4: out now on where the policy path should go.

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Speaker 9: I'm not sure. I think you could see it in

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Speaker 9: terms of him laying out just the difficulty of the moment.

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Speaker 9: So you do have the said Candid's intention where the

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Speaker 9: labor market is living some momentum, but if you look

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Speaker 9: at certain indicators like the unemployment rate, it's still looking

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Speaker 9: like it's roughly imbound. But at the same time, you

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Speaker 9: have inflation that's actually moving back up, so it's moving

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Speaker 9: in the wrong direction when we've been above target for

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Speaker 9: almost four and a half years now. So I think

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Speaker 9: discussing those dueling directions and the different risks that the

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Speaker 9: set is facing, I think we'll get to just some

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Speaker 9: of that split and why the committee is so divided

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Speaker 9: at this particular moment.

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Speaker 4: If we do see a chairman Palace sort of keep

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Speaker 4: his cards close to his vest, how do you expect

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Speaker 4: the market to.

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Speaker 3: React to that?

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Speaker 9: Yeah, So it seems like markets were pretty much anticipating

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Speaker 9: that we would get that clear cut signal that September

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Speaker 9: is likely, but I think those expectations have been paired

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Speaker 9: back in recent days. Is again, we've had some commentary

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Speaker 9: from some of the various regional FED presidents and even

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Speaker 9: just some of the recent inflation data which showed a

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Speaker 9: lot of their recent strength driven by services, not necessarily

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Speaker 9: it being all tariff induce which I think would have

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Speaker 9: made it easier for the FED to look through. So

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Speaker 9: I think if he doesn't signal that clear hint in September,

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Speaker 9: and it'll still probably be viewed as hackish, but I

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Speaker 9: think markets have kind of shifted that way anyway, anticipating

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Speaker 9: they won't get that clear, clear green light for September.

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Speaker 4: I think there is some anticipation that Chairman pal is

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Speaker 4: going to talk about changes to the Fed's framework for

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Speaker 4: addressing inflation and weakness and the labor market. What do

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Speaker 4: you expect there and the market reaction to that. We've

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Speaker 4: got about a minute left, sure.

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Speaker 9: So we are expecting that they'll announce the new framework,

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Speaker 9: and I think what we'll see is a more symmetric

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Speaker 9: approach to that, so formally ditching FATE. So that was

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Speaker 9: the flexible average inflation target where they said they would

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Speaker 9: make up for pass undershoot, so just returning to that

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Speaker 9: simple two percent target, but also taking a more symmetric

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Speaker 9: approach to its maximum employment side, so not focusing on

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Speaker 9: only short falls but instead rather any deviation. So I

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Speaker 9: think this could be interpreted as a more hawkish reaction

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Speaker 9: function than the prior framework. But importantly, the feeders already

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Speaker 9: shifted to this so even if it hasn't been formalized yet,

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Speaker 9: so I don't think it changes the new term course

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Speaker 9: of policy, although I think it will shine a light

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Speaker 9: on just how difficult it is the set for the

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Speaker 9: Fed to cut in this moment where core PC inflation

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Speaker 9: is likely to be three percent in August.

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