Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here
Speaker 2: are the top stories we're following today.
Speaker 3: Lisa, we are just hours away from the key event.
Speaker 4: Wall Street has been waiting for the speech from FED
Speaker 4: chair j Powell at Jackson Hall. The White House has
Speaker 4: been pressuring Powell to cut rates for months amid a
Speaker 4: weakening labor market, but questions remain about the impact tariffs
Speaker 4: will have on inflation. Bloomberg's Michael McKee is in Jackson
Speaker 4: Hall covering Powell and the annual FED conference.
Speaker 5: Last year, Chairman Powell said that he thought it was
Speaker 5: time the interest rates started to go down, and then
Speaker 5: he delivered in September when they made a fifty basis
Speaker 5: point cut. He's not expected to say that here this year.
Speaker 5: He's expected to talk about the fact that the economy
Speaker 5: is slowing on the employment side, but there are some
Speaker 5: worrying signs of inflation, and since those were require two
Speaker 5: different ways of responding by monetary policy, the FED would
Speaker 5: prefer to wait and get as much data and information
Speaker 5: as possible, which means they'll wait till after the next
Speaker 5: employment report and the next CPI report before settling on
Speaker 5: the best course of action.
Speaker 4: Bloomberg's Michael McKee part of our special Jackson Hole coverage.
Speaker 4: He'll join Tom Keen and Lisa Abromowitz for a special
Speaker 4: edition of Bloomberg Surveillance this morning at nine am Eastern Time,
Speaker 4: and they will bring you FED share Jpowell speech live
Speaker 4: that happens at ten am, and you can catch it
Speaker 4: all on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast
Speaker 4: channel on YouTube.
Speaker 2: Well Nathan. Several former FED officials are weighing into the
Speaker 2: Fed's next move. Robert Kaplan is the former Dallas FED
Speaker 2: president and vice chairman of Goldman Sachs.
Speaker 6: If the job market were stronger, I think it would
Speaker 6: be clearer to be more be patient and wait to
Speaker 6: see how the inflation is going to unfold, and be
Speaker 6: more patient to see a trend for further down toward target.
Speaker 6: But I think with this weekending the labor markets, it's
Speaker 6: going to push the FED I think to be more
Speaker 6: forward leading and maybe do an adjustment in September. But
Speaker 6: the caution I would give if they do move in September,
Speaker 6: I don't think that's the start of a cycle.
Speaker 2: I was former Dallas FED President Robert Kaplan. Now the
Speaker 2: interest rate market shows about a seventy percent chance of
Speaker 2: a quarter point cut at the September meeting and close
Speaker 2: to fifty basis points of easing for the entire year.
Speaker 4: Oh well, we wait to see whether those bets get refined.
Speaker 4: Following Chairman Powell speech, Lisa pressure is building on one
Speaker 4: of the Fed's board members. Federal Housing Finance Agency Director
Speaker 4: Bill Poulti says he will make a new statement on
Speaker 4: new evidence against FED Governor Lisa Cook this morning at
Speaker 4: nine thirty am Wall Street Time. Paulty announced that on
Speaker 4: x this morning, a day after the Justice Department urged
Speaker 4: Powell to remove Governor Cook from the board as it
Speaker 4: signals plans to investigate her for alleged mortgage fraud. Poulty
Speaker 4: tells Bloomberg he referred to Cook's case to the DOJ
Speaker 4: is part of a broader crackdown on the issue.
Speaker 7: We refer people almost every day. I refer people every
Speaker 7: week on a minimum, to the Department of Justice for
Speaker 7: mortgage fraud. This is literally what I am required to
Speaker 7: do underneath the Housing and Economic Recovery Act of two
Speaker 7: thousand and eight, which is to ensure the safety and
Speaker 7: soundness of the mortgage market.
Speaker 4: You can watch our full conversation with FHFA director Bill
Speaker 4: Polti on the Bloomberg Podcast YouTube channel.
Speaker 3: Now Bloomberg has reached out to Governor Cook.
Speaker 4: She has declined our requests for an interview, but in
Speaker 4: a statement, she says she won't be bullied into stepping down,
Speaker 4: but intends to take questions about her financial history seriously.
Speaker 2: Talks continue at the White House Nathan on taking a
Speaker 2: ten percent stake in Intel to shore up the struggling
Speaker 2: US chip maker. Now Bloomberg News has learned that Trump
Speaker 2: administration will not pursue equity stakes and other semiconductor manufacturers
Speaker 2: that are boosting investment in the US, like Micron Technology
Speaker 2: and Taiwan's Semiconductor. Now fill moves in the White House
Speaker 2: to take a cut of Nvidia chip sales in China
Speaker 2: and to pursue a so called golden share in US steel.
Speaker 2: Former Vice President Mike Penn says President Trump should reconsider
Speaker 2: the whole strategy.
Speaker 8: State owned enterprise is not the American way. Free enterprise
Speaker 8: is the American way, and a refereed private sector with
Speaker 8: less taxes and less regulation has created the most prosperous
Speaker 8: economy in the history of the world, and if we
Speaker 8: stay on that path, that'll always be true.
Speaker 2: Former Vice President Mike Pence with a guest on Bloomberg's
Speaker 2: Balance of Power. You can also get that full conversation
Speaker 2: on the Bloomberg Podcast YouTube channel.
Speaker 4: Well Staying in the chip texter Lisa In, Nvidia reportedly
Speaker 4: told its component suppliers to halt production of its H
Speaker 4: twenty AI chip that's designed for the Chinese market. According
Speaker 4: to the Information, in Vidia issued that order this week
Speaker 4: after Beijing urged local firms to avoid using those Nvidia chips.
Speaker 4: CEO Jensen Wong says his company is in talks with
Speaker 4: Beijing US government.
Speaker 9: The Trump administration has approved of licenses for US to
Speaker 9: export age.
Speaker 3: Toities to China.
Speaker 10: Recently, China asked some questions about some.
Speaker 3: Security back doors in our ships.
Speaker 6: We have made it very clear and put to rest
Speaker 6: that H twenty has no security backdoors.
Speaker 3: That was Nvidia CEO Jensen Wong.
Speaker 4: The Age twenty is a less powerful version of the
Speaker 4: company's cutting edge AI accelerators. It was designed to comply
Speaker 4: with US export controls.
Speaker 2: Well well Mark News has learned two tech behemoths are
Speaker 2: hooking up on an artificial intelligence related deal. Let's get
Speaker 2: the very re lated from Bloomberg's John Tucker. Good Morning, John,
Speaker 2: and Lisa.
Speaker 11: Meta Platforms has agreed to a deal with alphabetz Google
Speaker 11: for cloud computing services. That's the first major cloud computing
Speaker 11: deal between Meta and Google. Meta CEO Mark Zuckerberg has
Speaker 11: pledged to spend hundreds of billions of dollars on AI
Speaker 11: and the infrastructure needed to support howard It, the Facebook
Speaker 11: and Instagram parent company, will pay a minimum of ten
Speaker 11: billion dollars over six years to use Google's cloud servers
Speaker 11: and storage, and an effort to quickly bring online more
Speaker 11: computing power as it competes in the race to offer
Speaker 11: users AI tools. Zuckerberg is seeking to amass the most
Speaker 11: computing power per AI researcher, and he wants to do
Speaker 11: it quickly. You know you, York, Come John Tucker, Bloomberg Radio.
Speaker 4: Okay, John, thank you. Mark Zuckerberg was almost involved in
Speaker 4: another big deal. According to a court filing, Elon Musk
Speaker 4: tried to enlist the Meta CEO for his unsolicited bid
Speaker 4: for Open Ai this year. Zuckerberg was one of the
Speaker 4: people with whom must communicate it about potentially financing a
Speaker 4: deal to purchase the maker of Chat GPT. In the filing,
Speaker 4: OpenAI says neither Zuckerberg nor Meta signed the letter of
Speaker 4: intent or participated in the ninety seven billion dollar bid.
Speaker 2: Well more news out of Meta this morning, Nathan the
Speaker 2: company is hiring another key Apple artificial intelligence executive, and
Speaker 2: this is even as the social networking company prepares a
Speaker 2: slow wits recruitment. In a Bloomberg exclusive, sources a Frank Chu,
Speaker 2: who has led Apple AI teams focused on cloud infrastructure,
Speaker 2: will be joining Meta super Intelligence Labs, and the executive
Speaker 2: is following several of his colleagues to Meta, which also
Speaker 2: hired the head of Apple's AI models team.
Speaker 4: Meantime, Lisa China is accusing the US of quote threatening
Speaker 4: world peace before it hosts a gathering of global leaders.
Speaker 4: More than twenty of them are set to attend the
Speaker 4: annual summit of the Shanghai Cooperation Organization, which is a
Speaker 4: block of countries led by Russia and China. Chinese Assistant
Speaker 4: Foreign Minister Liu Binn framed the gathering as a break
Speaker 4: with the ethos of a quote certain country that quote
Speaker 4: seeks to put its national interest above the interest of others.
Speaker 4: US was never invited to be part of the group
Speaker 4: that was initially seen in the West as a China
Speaker 4: backed Eastern counterweight to NATO.
Speaker 2: It is time now for a look at some of
Speaker 2: the other stories making news in New York and around
Speaker 2: the world. For that, we're joined by Bloomberg's Michael bar
Speaker 2: Good morning, Michael.
Speaker 12: Good morning, Lisa. Governor Phil Murphy says a state of
Speaker 12: emergency remains for New Jersey as Hurricane Erin battered coastal
Speaker 12: communities with strong winds, waves, and life threatening rip currents.
Speaker 12: Governor Murphy says absolutely no one should be in the
Speaker 12: coastal waters today. Aaron flooded streets and eroded beaches in
Speaker 12: parts of the Jersey Shore and Long Island. High serve
Speaker 12: advisories for five to seven feet are in effect. Bloomberg
Speaker 12: Meeting religious Craig Allen has more.
Speaker 13: Erin is now about five hundred miles away from Halifax,
Speaker 13: Nova Scotia, but still has hurricane force winds one hundred
Speaker 13: five miles outside of the center and tropical storm force
Speaker 13: winds three hundred and twenty miles from the center, and
Speaker 13: so the ocean continues to be very roughed up, and
Speaker 13: I would bet that there will continue to be red
Speaker 13: flags flying right through the day today, even though the
Speaker 13: weather itself is going to be pretty nice.
Speaker 12: Bloomberg Meeting religious Craig Allen, one of the two Menendez brothers,
Speaker 12: was denied parole on Thursday from murdering his parents thirty
Speaker 12: six years ago in California. It is keeping Eric Menndez
Speaker 12: behind bars for at least another three years. Today, Lyle
Speaker 12: Menendez will appear before the parole board. President Trump visited
Speaker 12: with police and National Guard units that are patrolling Washington, DC.
Speaker 10: Well, I just want to thank everybody very much for
Speaker 10: being here. I wanted to do this. We've had some
Speaker 10: incredible results and results have come out, and it's like
Speaker 10: a different place. It's like a different city. It's the capital.
Speaker 10: It's going to be the best in the world.
Speaker 12: In a radio interview earlier Thursday, President Trump said he
Speaker 12: would be going out tonight with the law enforcement and military,
Speaker 12: but he returned to the White House after the visit
Speaker 12: to the facility. Global News twenty four hours a day
Speaker 12: and whenever you want it with Bloomberg News. Now, michae L.
Speaker 3: Barn this is Bloomberg Time.
Speaker 4: Now for our Bloomberg Sports update, and for that we
Speaker 4: bring in John Stashauwer, Thanks Nathan.
Speaker 14: Tour Championship Golf Underwagh in Atlanta. Of the thirty players
Speaker 14: going for the ten million dollar first place prize, nobody
Speaker 14: played like Russell Henley seven birdies and eagle, no bogies,
Speaker 14: a nine under sixty one and a two shot lead
Speaker 14: on Scottie Scheffler. Five others trail by three. Rory McElroy
Speaker 14: trails by five. Dodgers and Padres both won ALA at Colorado.
Speaker 14: Clayton Chrishall went to eight and two. San Diego beat
Speaker 14: the Giants Justin Verlanderfelder one and ten. Dodgers leave the
Speaker 14: NL West by one game. That's your Bloomberg Sports Update.
Speaker 3: Stay with us. More from Bloomberg Daybreak coming up after.
Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Serious
Speaker 1: Exam and around the world on Bloomberg dot Com and
Speaker 1: the Bloomberg Business opp This is Bloomberg Daybreak.
Speaker 4: Good morning, I'm Nathan Hager with the countdown on to J.
Speaker 4: Powell's speech at the FED Symposium in Jackson Hole, Wyoming.
Speaker 4: His chance to give clues on the policy path for
Speaker 4: his final nine months as chair to cement his legacy
Speaker 4: as he continues to face relentless criticism from the White
Speaker 4: House over interest rates. Ahead of the keynote address, we're
Speaker 4: very pleased to be joined this morning by Sarah House,
Speaker 4: senior economists at Wells Fargo. Sarah, it's great to have
Speaker 4: you with us on Jackson Hole Day. Do you expect
Speaker 4: Chairman pal either to give more clues on the policy
Speaker 4: path or to address that pressure he's under.
Speaker 3: Good morning, Good morning, Nathan.
Speaker 9: So we're not expecting an explicit hint that what the
Speaker 9: FED will do at the September meeting. So this is
Speaker 9: not like last year where I think there was pretty
Speaker 9: broad consensus that the Fed was needing to pivot. So
Speaker 9: the committee still remains very split, as we saw within
Speaker 9: the minutes, but also just some of the recent FED speak,
Speaker 9: and then I think the recent data we had even
Speaker 9: since the minutes, it didn't resolve that split. So yes,
Speaker 9: you had the much weaker payrolls numbers, but then you
Speaker 9: also had signed of inflation being more persistent, just based
Speaker 9: on the mix of the recent inflation readings. So I
Speaker 9: think going to want to keep his options open where
Speaker 9: we still have another month's worth of data before that
Speaker 9: September meeting.
Speaker 4: Could there be some addressing of that split? As you say,
Speaker 4: we have seen a very divergent view starting to come
Speaker 4: out now on where the policy path should go.
Speaker 9: I'm not sure. I think you could see it in
Speaker 9: terms of him laying out just the difficulty of the moment.
Speaker 9: So you do have the said Candid's intention where the
Speaker 9: labor market is living some momentum, but if you look
Speaker 9: at certain indicators like the unemployment rate, it's still looking
Speaker 9: like it's roughly imbound. But at the same time, you
Speaker 9: have inflation that's actually moving back up, so it's moving
Speaker 9: in the wrong direction when we've been above target for
Speaker 9: almost four and a half years now. So I think
Speaker 9: discussing those dueling directions and the different risks that the
Speaker 9: set is facing, I think we'll get to just some
Speaker 9: of that split and why the committee is so divided
Speaker 9: at this particular moment.
Speaker 4: If we do see a chairman Palace sort of keep
Speaker 4: his cards close to his vest, how do you expect
Speaker 4: the market to.
Speaker 3: React to that?
Speaker 9: Yeah, So it seems like markets were pretty much anticipating
Speaker 9: that we would get that clear cut signal that September
Speaker 9: is likely, but I think those expectations have been paired
Speaker 9: back in recent days. Is again, we've had some commentary
Speaker 9: from some of the various regional FED presidents and even
Speaker 9: just some of the recent inflation data which showed a
Speaker 9: lot of their recent strength driven by services, not necessarily
Speaker 9: it being all tariff induce which I think would have
Speaker 9: made it easier for the FED to look through. So
Speaker 9: I think if he doesn't signal that clear hint in September,
Speaker 9: and it'll still probably be viewed as hackish, but I
Speaker 9: think markets have kind of shifted that way anyway, anticipating
Speaker 9: they won't get that clear, clear green light for September.
Speaker 4: I think there is some anticipation that Chairman pal is
Speaker 4: going to talk about changes to the Fed's framework for
Speaker 4: addressing inflation and weakness and the labor market. What do
Speaker 4: you expect there and the market reaction to that. We've
Speaker 4: got about a minute left, sure.
Speaker 9: So we are expecting that they'll announce the new framework,
Speaker 9: and I think what we'll see is a more symmetric
Speaker 9: approach to that, so formally ditching FATE. So that was
Speaker 9: the flexible average inflation target where they said they would
Speaker 9: make up for pass undershoot, so just returning to that
Speaker 9: simple two percent target, but also taking a more symmetric
Speaker 9: approach to its maximum employment side, so not focusing on
Speaker 9: only short falls but instead rather any deviation. So I
Speaker 9: think this could be interpreted as a more hawkish reaction
Speaker 9: function than the prior framework. But importantly, the feeders already
Speaker 9: shifted to this so even if it hasn't been formalized yet,
Speaker 9: so I don't think it changes the new term course
Speaker 9: of policy, although I think it will shine a light
Speaker 9: on just how difficult it is the set for the
Speaker 9: Fed to cut in this moment where core PC inflation
Speaker 9: is likely to be three percent in August.
Speaker 4: This is Bloomberg day Break, your morning podcast on the
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Speaker 3: To stay informed all day long. I'm Nathan Hager and.
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