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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today, Karen.

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Speaker 2: Earnings and the FED are clearly in focus for investors

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Speaker 2: this week. Tomorrow we get highly anticipated results from AI

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Speaker 2: Chips stalwart Nvidia. Inflation figures at the end of the

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Speaker 2: week will likely reinforce that long awaited rate cuts are

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Speaker 2: coming soon. In fact, in an interview with Bloomberg's Michael McKee,

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Speaker 2: San Francisco FED President Mary Daily agreed with FED chair

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Speaker 2: Jay Powell's view it's time to cut rates.

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Speaker 3: Well, to my mind, we've been on this path of

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Speaker 3: ready to adjust policy rates for several months. We just

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Speaker 3: needed to get a little more confidence and inflation was

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Speaker 3: truly on its path to two percent, and I wanted

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Speaker 3: to see the labor market come into balance. But I

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Speaker 3: think that's completely happened and the risk to our goals

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Speaker 3: are now balanced in the time to adjust policy is

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Speaker 3: upon us.

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Speaker 2: Francisco FRED President Mary Daily says she and her colleagues

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Speaker 2: will seek to prevent restrictive policy from harming the labor market.

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Speaker 1: Well, Nathan, as we await those earnings from Nvidia, tomorrow.

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Speaker 1: Another one of the so called Magnificent Seven is making

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Speaker 1: news this morning. Shares of Apple down about a quarter

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Speaker 1: percent in early trading. It's longtime chief financial officer is

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Speaker 1: stepping down at the end of the year. Luka Maistrie

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Speaker 1: will hand his role to top deputy Kevin Perek after

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Speaker 1: more than a decade. The company has described the move

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Speaker 1: as a planned transition, with Mystree remaining at the firm

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Speaker 1: and a reduced role overseeing information technology and real estate functions.

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Speaker 2: Well, Karen, the saga over Paramount Global and its new

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Speaker 2: ownership is taking a new twist this morning. Let's get

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Speaker 2: the details from Bloomberg's Jeff Bellinger.

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Speaker 4: In New York, producer David Ellison, Skydance Media is set

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Speaker 4: to become the new owner of Paramount Global. This comes

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Speaker 4: after Sigrameir Edgar Bronfman Junior dropped out late last night.

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Speaker 4: The Hollywood Studio says it expects to complete the deal

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Speaker 4: with sky Dance in the first half of twenty twenty five.

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Speaker 4: David Ellison is the son of Oracle co founder Larry Ellison.

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Speaker 4: He is aiming to provide a fresh start for the

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Speaker 4: parent of CBS and MTV, laden with more than fourteen

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Speaker 4: billion dollars in debt. Paramount has struggled to compete in streaming.

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Speaker 4: It has also suffered as cable TV audiences canceled their

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Speaker 4: subscriptions and abandoned traditional channels like CBS and Nickelodeon. It's

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Speaker 4: reducing its US workforce by fifteen percent. Its shut down

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Speaker 4: Paramount television studios this month in New York Jeff Bellinger Bloomberg.

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Speaker 1: Radio, all right, Jeff, thank you all. In Europe shares

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Speaker 1: a BHP at almost one and a half percent. The

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Speaker 1: world's biggest mining company posted profit that beat analyst estimates.

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Speaker 1: Revenue from iron ore and copper increase despite a deteriorating

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Speaker 1: Shinese demand outlook. We spoke with CEO Mike Henry.

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Speaker 5: In China a bit of a mixed picture.

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Speaker 6: We're seeing strong growth in a number of segments that

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Speaker 6: are are portant for commodity demand in China, and that

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Speaker 6: includes automobiles, machinery, infrastructure, shipbuilding, but the property sector itself,

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Speaker 6: which makes up about twenty percent of steel demand, that is,

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Speaker 6: it's been weak for some time. We've seen lower or

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Speaker 6: fairly low levels of both sales and news starts. But

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Speaker 6: the Chinese government is enacting policies that are intended to.

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Speaker 1: Address that, and BHP boss Mike Henry says he still

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Speaker 1: expects China to hit its five percent growth target this year.

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Speaker 2: Look hearing that news from BHP comes as the firm

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Speaker 2: behind the Chinese Online Marketplace team, who suffered a fifty

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Speaker 2: five billion dollar stock route as economic headwinds take a

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Speaker 2: toll on China's retailers. In the latest warning on the

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Speaker 2: health of the Chinese economy, the CEO of PDD Holdings

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Speaker 2: Chen Lay, said revenue and profits must inevitably decline. Reacting

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Speaker 2: to the news, shares in the e commerce firm plunged

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Speaker 2: by twenty nine percent yesterday, in their biggest fall on record,

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Speaker 2: Well Nathan.

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Speaker 1: The White House is keeping the US China relationship in

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Speaker 1: Focustional Security Advisor Jake Sullivan has arrived in Beijing for

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Speaker 1: a three day visit, his first at China. He plans

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Speaker 1: to meet with Foreign Minister Wangyee and raised concerns over

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Speaker 1: China's support for Russia and the Ukraine War. He also

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Speaker 1: plans to restate US positions on Taiwan and the South

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Speaker 1: China Sea. China is likely to bring up Taiwan as well.

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Speaker 1: Along with US tariffs and efforts to cut China off

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Speaker 1: from advanced technology.

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Speaker 2: As far as the presidential race goes karent, we're getting

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Speaker 2: more insights into Vice President Harris's economic vision from her husband.

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Speaker 2: Second Gentleman Doug M. Hoff, spoke at a fundraiser in Sagharbor,

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Speaker 2: New York last night. He called his wife a pro

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Speaker 2: growth capitalist who wants a forward looking economy that helps everyone.

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Speaker 2: Am Hoff pointed to his own career as a business lawyer,

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Speaker 2: saying she understood exactly what he was doing with his clients.

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Speaker 2: Harris has rolled out an economic platform that includes expanded

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Speaker 2: child tax credits and twenty five thousand dollars for first

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Speaker 2: time home buyers. She has been criticized for not being

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Speaker 2: as specific as past presidential campaigns.

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Speaker 1: Well Nathan A US appeals court is being asked to

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Speaker 1: reinstate the classified A documents case against former President Donald

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Speaker 1: Trump and Bloomberg's Nancy Lyons has the latest.

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Speaker 7: Special counsel, Jack Smith, is appealing to Florida judge's decision

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Speaker 7: to toss out the criminal case charging the former president

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Speaker 7: with mishandling classified documents. Judge Aleen Cannon dismissed the case

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Speaker 7: last month, saying the appointment of Smith as Special Council

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Speaker 7: was unconstitutional. Smith, in his appeal to the Eleventh US

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Speaker 7: Circuit Court of Appeals, says Cannon's decision is at odds

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Speaker 7: with long standing appointment practices in the Department of Justice

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Speaker 7: as well as across the government. Donald Trump's team is

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Speaker 7: due to respond to the government's brief in a month.

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Speaker 7: Then the government will have another three weeks to reply.

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Speaker 7: In Washington, Nancy lyons Bloomberg Radio, all.

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Speaker 2: Right, Nancy, thank you. We're planning on covering a space

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Speaker 2: launch this morning, but the first ever private spacewalk is

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Speaker 2: going to have to wait. SpaceX has scrubbed this morning's

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Speaker 2: schedule lift off of Polaris Don with four private astronauts

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Speaker 2: on board, due to a roundside helium leake. One of

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Speaker 2: those four astronauts is billionaire Jared Isaacman, who's flown with

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Speaker 2: SpaceX before and provided the funds for this mission. Isaacman

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Speaker 2: and SpaceX engineer Sarah Gillis are planning to step outside

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Speaker 2: the spacecraft on the third day of the flight and

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Speaker 2: both perform a spacewalk. The next launch window for Pularistan

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Speaker 2: is no earlier than tomorrow.

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Speaker 1: Well Nathan wall Street is beginning to sour on the

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Speaker 1: outlook for crude next year, Goldman Sachs and Morgan Stanley

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Speaker 1: both lowering price forecast. The two banks now foreseeing global

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Speaker 1: benchmark Brent averaging less than eighty dollars a barrel in

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Speaker 1: twenty twenty five. Both expect that the crude market will

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Speaker 1: be in surplus, with prices trending lower over the twelve months.

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Speaker 1: And checking oil right now, West Texas Intermediate is down

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Speaker 1: six ten sive percent at seventy six dollars ninety three

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Speaker 1: cents a barrel. Brent is at eighty one dollars two cents.

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Speaker 1: And it's time now for a look at some of

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Speaker 1: the other stories making news in New York and around

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Speaker 1: the world, and for that we're joined by Bloomberg's Michael

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Speaker 1: Barr Michael good Morning, Good Morning.

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Speaker 8: Care and New Yorker has been told to keep their

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Speaker 8: windows closed over the next few nights because the city

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Speaker 8: will be spraying for mosquitoes to stop the spread of

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Speaker 8: the West Nile virus. There are now six confirmed cases

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Speaker 8: in New York City. Plans are to continue spring in

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Speaker 8: Brooklyn Wednesday night into Thursday morning. This New Yorker is

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Speaker 8: happy to hear about the spring.

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Speaker 5: They love me. It's something about my juicy blood. They

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Speaker 5: definitely like the song. Concerned.

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Speaker 8: At least thirty states have now reported cases of West Nile.

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Speaker 8: A form was held in Butler, Pennsylvania, examining the attempted

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Speaker 8: assassination of former President Donald Trump and involves a bipartisan

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Speaker 8: group of representatives. Republican Representative Mike Kelly of Pennsylvania, there's.

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Speaker 9: Not one person on this conference that's identifying just as

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Speaker 9: a Republican or a Democrat. Where identify as members of

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Speaker 9: Congress on a task force with a task to restore

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Speaker 9: the faith and trust and confidence the American people have

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Speaker 9: to have in our system.

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Speaker 8: With the congressman Kelly was Democratic Florida Representative Jared Muskowitz.

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Speaker 10: I look forward to getting the facts of what failed

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Speaker 10: that day.

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Speaker 9: We were inches away from an American catastrophe.

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Speaker 8: Meanwhile, the Harris and Trump campaigns are arguing over where

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Speaker 8: the microphone should be muted except for the candidate whose

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Speaker 8: turn it is to speak during upcoming debates. The next

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Speaker 8: one is scheduled on ABC September tenth. A tragic start

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Speaker 8: to the new schooled year at Rice University. A student

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Speaker 8: was found shot to death in her dorm room yesterday

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Speaker 8: and what appears to be a murders suicide. The victim

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Speaker 8: has been identified as a junior from Maryland, Andrea Rodriguez Avilla.

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Speaker 8: Rice University President Reginald the Roach.

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Speaker 11: I want all of our students, all parents in the

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Speaker 11: entire Rice community to know that the Rice campus is

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Speaker 11: safe and there is no media threat, and tonight we

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Speaker 11: will wrap our arms around our students.

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Speaker 8: Authority say. The body of the shooter was also discovered

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Speaker 8: in the dorm room with thelf inflicted gunshot wound and

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Speaker 8: a note. Campus authorities believe the two were in a relationship. Finally,

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Speaker 8: the NYPD boosted security as the US Open is underway

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Speaker 8: in for the first time ever. Organizers expect more than

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Speaker 8: a million tennis fans to attend. We'll have more with

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Speaker 8: Sports and Dan Schwartzman, straight ahead global news twenty four

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Speaker 8: hours a day and whenever you want it with the

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Speaker 8: Bloomberg News. Now. I'm Michael Barr, and this is Bloomberg Karen.

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Speaker 1: All right, Michael Barr, thank you, and it is time

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Speaker 1: now for the Bloomberg Sports Update with Dan Schwartzman.

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Speaker 10: Dan, good morning, Good morning, Karen, Yankees opening up a

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Speaker 10: three game set in Washington of a five to two

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Speaker 10: win over the Nationals. Yankees getting solo home runs from

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Speaker 10: Jazz Chisholm, Galaber Torres and Austin Wells.

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Speaker 12: Pitch is hit in the air to Deep Rite oh

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Speaker 12: Black close the right fielder. You can forget this one.

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Speaker 12: Austin Wells takes out his frustrations from two strikeouts with

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Speaker 12: an absolute bomb to right field.

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Speaker 10: Kersey, a wfan Nestra Cortez picking up his eighth winn

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Speaker 10: of the season, pitching six and two third strong innings.

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Speaker 10: Yankees moving two full games ahead of the Orioles in

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Speaker 10: the America League East as Baltimore was idle Yankees and

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Speaker 10: NAT's back at it tonight, Garret Cole taking the mound

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Speaker 10: versus Patrick Corbin Mets coming off and off day there

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Speaker 10: in Arizona tonight facing the Diamondback Sean and Aya is

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Speaker 10: on the hill for the Mets facing Eduardo Rodriguez Metts

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Speaker 10: starring the day three games back at the Atlanta Braves

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Speaker 10: to the final National League Wild Card slot.

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Speaker 5: NFL cut Day is today.

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Speaker 10: All teams must pair their rosters from ninety to the

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Speaker 10: fifty three men they'll be carrying into the regular season.

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Speaker 10: The year's final Grand Slam in tennis, the US Open,

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Speaker 10: getting underway in New York, with defending women's champions second

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Speaker 10: seed Coco Golf moving on to the second round in

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Speaker 10: straight sets along the third seeded Arena Sablenka. Top ced

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Speaker 10: Gus fiat Tek plays for first round matches afternoon versus

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Speaker 10: Camilla Rakimova. In the men's draw, second seed Novak Djovkovic

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Speaker 10: beginning his quest for his twenty fifth Grand Slam trophy

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Speaker 10: with a straight sets win. Top seed Gyanick Center and

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Speaker 10: third seed Carlos al Karaz They begin their tournaments today.

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Speaker 10: That's your Bloomberg Sports Update on Dan Schwartzman, Karen and Nathan.

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Speaker 8: Coast to coast on Bloomberg Radio nationwide on Sirius XM,

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Speaker 8: and around the world on Bloomberg dot Com and the

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Speaker 8: Bloomberg Business app.

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Speaker 5: This is Bloomberg Daybreak.

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Speaker 2: Good morning, I'm Nathan Hager. San Francisco. Fed President Mary

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Speaker 2: Daily says it is time for the Federal Reserve to

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Speaker 2: cut interest rates. She is just the latest Fed official

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Speaker 2: to echo J Powell's duvish Jackson Hall remarks. Speaking with

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Speaker 2: Bloomberg's Michael McKee. Daly said she thinks rate cuts are

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Speaker 2: coming next month in part because of concerns about the

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Speaker 2: labor market. We now bring you part of their discussion.

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Speaker 3: We've been on this path of ready to adjust policy

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Speaker 3: rates for several months. We just needed to get a

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Speaker 3: little more confidence and inflation was truly on its path

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Speaker 3: to two percent, and I wanted to see the labor

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Speaker 3: market come into balance. But I think that's completely happened

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Speaker 3: and the risk to our goals are now balanced in

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Speaker 3: the time to adjust policy is upon us.

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Speaker 5: Is there anything that could derail in September, So.

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Speaker 3: In my mind that would be hard to imagine. At

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Speaker 3: this point, I do see that adjusting policy is appropriate.

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Speaker 3: We don't want to get ourselves into a situation where

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Speaker 3: we're keeping policy highly restrictive into a slowing economy. And remember,

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Speaker 3: every time inflation comes down, the policy gets more restrictive.

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Speaker 3: And I think that's a recipe, if you will, for

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Speaker 3: overtightening and injuring the labor marketing growth.

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Speaker 13: Well, the Chairman and basically the Open Market Committee said

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Speaker 13: coming out of the meeting that the downside risks are

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Speaker 13: greater to unemployment than to inflation. How big are the

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Speaker 13: downside risks to employment right now?

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Speaker 3: So we definitely have to keep that in mind, because,

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Speaker 3: as you know, the labor market, when it starts to adjust,

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Speaker 3: often has adjusted abruptly and significantly. But right now we

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Speaker 3: don't see any signs of that. You look at initial

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Speaker 3: claims for unemployment insurance, you look at early indications of layoffs.

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Speaker 3: They're just not present, and so that's not giving us

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Speaker 3: any signs that there's a deterioration. Importantly, as you know,

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Speaker 3: the Reserve Bank presidents spend a considerable amount of time

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Speaker 3: talking to contacts, businesses, workers. We're really not hearing signs

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Speaker 3: that firms are poised for layoffs. What they are doing

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Speaker 3: is managing headcount, making sure that they really want to

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Speaker 3: refill a job before they do it. But at this point,

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Speaker 3: I don't see any morning signs of weakness. But we

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Speaker 3: want to make sure that we are adjusting policy as

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Speaker 3: we go so that it's ready for the economy we

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Speaker 3: have and for the economy we're likely to get, and

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Speaker 3: ensure that we don't end up in that situation where

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Speaker 3: we see real weakness.

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Speaker 5: All right, let's talk about tactics.

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Speaker 13: Markets are now pricing one hundred basis points it cuts

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Speaker 13: by the end of the year, but there are only

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Speaker 13: three meetings left, which would imply at least one to

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Speaker 13: fifty basis point cut. Do you think the markets are

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Speaker 13: wrong or is a good possibility we see a fifty somewhere.

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Speaker 5: Well, I think.

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Speaker 3: Everyone's looking at the economic projections and then making a decision.

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Speaker 3: For me, what I'm going to be doing is looking

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Speaker 3: at the incoming information. As you said, we have another CPI,

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Speaker 3: another labor market report discussed with my colleagues, talk to

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Speaker 3: our contacts and fashion the policy that's right for the

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Speaker 3: economy that we see. So it's too early to know

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Speaker 3: exactly what the tactics will be. We do know one thing,

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Speaker 3: the direction of changes down, and we need to do

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Speaker 3: it in a way that is responsive to the economy

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Speaker 3: and not let the economy get in a position of weakness.

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Speaker 5: Well, let me quote the FED back to you.

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Speaker 13: If the economy evolves as we expect, as you always say,

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Speaker 13: would that imply a twenty five basis point cut in

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Speaker 13: September versus fifty.

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Speaker 3: So I think of it as his scenarios, if I

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Speaker 3: may so, the scenario that is my most likely outcome,

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Speaker 3: and what I see in the data and the projections

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Speaker 3: is that we continue to get gradual slowing in inflation,

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Speaker 3: and we continue to get that study sustainable pace of

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Speaker 3: growth in the labor market. If those things happen, then

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Speaker 3: adjusting policy at the regular normal cadence seems reasonable. But

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Speaker 3: if we see a further deterioration or we haven't seen

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Speaker 3: any deterioration yet in the labor market, if we should

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Speaker 3: see deterioration or any signs of weakness, then being more

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Speaker 3: aggressive to ensure that we don't see that it would

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Speaker 3: be appropriate. So I think it's too early to know,

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Speaker 3: and I don't want to make a declaration when none

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Speaker 3: is necessary. The direction of changes down and the time

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Speaker 3: to adjust is now. In my opinion, some.

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Speaker 13: Of your colleagues at the regional banks told me in

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Speaker 13: Jackson Hole that they want to see a methodical, step

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Speaker 13: by step process and that companies want to see that

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Speaker 13: as well. What markets are reading into a little bit

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Speaker 13: of what Jay Pile said when he did not or

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Speaker 13: did not say because he didn't use the word patient,

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Speaker 13: do you think that there is a sort of bias

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Speaker 13: to maybe do more if the labor market is a

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Speaker 13: little bit weaker than anticipated.

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Speaker 3: Well, let me speak about myself. And I see further

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Speaker 3: signs that the economy or the labor market is slowing,

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Speaker 3: is unwelcomed, and I do not want to see that.

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Speaker 3: That's a that's not what we're looking for. We're looking for,

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Speaker 3: and the Chair said this in this speech. We're looking

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Speaker 3: for inflation to come down, can be sustainably down to

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Speaker 3: two percent, and for the labor market to stay right

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Speaker 3: about where it is. We don't want to see additional

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Speaker 3: weakness because that's actually what we're trying to prevent. Ultimately,

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Speaker 3: have two goals, christability, full employment. We're trying to get

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Speaker 3: those two goals to simultaneously exist, and adjusting the policy

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Speaker 3: rate to ensure that happens is what we will need

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Speaker 3: to do.

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