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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 Karen Moscow. Here

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

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Speaker 3: Karen, we begin with breaking developments in the Jeffrey Epstein case.

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Speaker 3: President Donald Trump has been under growing pressure from within

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Speaker 3: his own party to release documents related to the late

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Speaker 3: child sex offender. Now, the President has authorized the Justice

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Speaker 3: Department to seek the release of grand jury testimony in

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Speaker 3: the case. The move comes after a Wall Street Journal

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Speaker 3: report that President Trump gave a suggestive letter to Epstein

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Speaker 3: as part of an album for his fiftieth birthday. House

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Speaker 3: speaker Mike Johnson says, the President is making the right move.

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Speaker 4: We trust the American people.

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Speaker 5: They can draw their own conclusions, and so he's in

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Speaker 5: the process of releasing the information that can be released

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Speaker 5: it's not held up by a court or involves, you know,

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Speaker 5: victims of crimes or something like that.

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Speaker 3: House Speaker Mike Johnson reacted to the news on Capitol

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Speaker 3: Hill last night. President Trump posted on social media that

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Speaker 3: Attorney General Pam Bondi should produce pertinent grand jury testimony,

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Speaker 3: subject to court approval. It's unclear if the courts would

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Speaker 3: release that testimony, which is typically kept secret. As for

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Speaker 3: the Journal report on the birthday letter, President Trump is

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Speaker 3: calling that fake news and he's threatening to sue the paper.

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Speaker 2: Nathan Feder Reserve chair Jerown Powell has sent a letter

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Speaker 2: to the White House budget Director as he faces mounting

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Speaker 2: pressure over the Central Banks two and a half billion

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Speaker 2: dollar renovation. Powell's letter mostly repeats information from a frequently

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Speaker 2: asked questions page on the Fed's website. The chairman has

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Speaker 2: blamed rising building costs for the overruns. Budget Director Russ

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Speaker 2: Vote says the project has been horribly mismanaged.

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Speaker 6: This is not something the American people should expect from

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Speaker 6: their government, and it comes at the real world implication

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Speaker 6: of us not having the FED running a large s

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Speaker 6: program that doesn't allow us to bring in the necessary

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Speaker 6: resources to the Treasury.

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Speaker 2: White House a budget director Chris Vote, spoke to reporters

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Speaker 2: at the White House. His criticisms come on top of

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Speaker 2: an ongoing push by President Trump and his allies for

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Speaker 2: the FED to lower interest rates.

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Speaker 3: Well, President Trump's not the only one calling for rate cut.

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Speaker 3: Karen Fed Governor Christopher Waller says policymakers should cut this

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Speaker 3: month to support a labor market that is showing signs

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Speaker 3: of weakness.

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Speaker 7: I believe it makes sense to cut the fmc's policy

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Speaker 7: rate by twenty five basis points two weeks from now

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Speaker 7: and looking to later this year. If, as I expect,

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Speaker 7: underlying inflation remains in check, with headline inflation data reporting

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Speaker 7: modest but temporary increases from inflate on tariffs that are

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Speaker 7: not un anchoring inflation expectations, and the economy continues to

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Speaker 7: grow slowly, I would support even further twenty five basis

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Speaker 7: point cuts to move policy towards neutral.

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Speaker 3: FED Governor Christopher Waller spoke in a speech in New

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Speaker 3: York yesterday.

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Speaker 2: Nathan new developments this morning on the war in Ukraine.

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Speaker 2: European Union States have approved a fresh sanctions package on Russia,

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Speaker 2: and we go to London and get the latest at

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Speaker 2: Bloomberg's Uen pots.

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Speaker 8: Ewen, Karen and Nathan. This is the eighteenth package of

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Speaker 8: EU sanctions against Russia since its invasion of Ukraine. The

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Speaker 8: measures we'll see about twenty more Russian banks cut off

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Speaker 8: from the international payment system swift and energy exports will

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Speaker 8: be targeted with restrictions on oil processed in third countries,

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Speaker 8: including the blacklisting of a refinery in India part owned

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Speaker 8: by Russian state oil run company Ross left and the

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Speaker 8: eucap on Russian oil price is currently set at sixty

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Speaker 8: dollars a barrel. Will now we cut to fifteen dollars

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Speaker 8: below market rates in London.

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Speaker 3: I'm youw in pots Bloomberg Radio, All right, ewen, thank

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Speaker 3: you turn two of the markets now. Both the S

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Speaker 3: and P five hundred and the Nasdaq are beginning the

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Speaker 3: day near record highs. Shares of Netflix are falling. They're

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Speaker 3: down more than one percent. That's despite earnings for the

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Speaker 3: streaming giant beating investor exptations and every major metric. The

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Speaker 3: world's most popular paid streaming service is also raising its

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Speaker 3: forecast for full year sales and profit margins. Netflix CEO

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Speaker 3: Ted Sarando says his outlook is positive.

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Speaker 9: We're feeling really good about the business. We had a

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Speaker 9: plan to reaccelerate growth and we've delivered on that plan.

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Speaker 9: And engagement, which we view as our best proxy for

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Speaker 9: member happiness because when people watch more, they stick around longer,

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Speaker 9: so that's retention.

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Speaker 3: Ted Sarando spoke on the Netflix earnings call. Netflix shares

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Speaker 3: have nearly doubled over the past year, It's market value

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Speaker 3: tops five hundred billion dollars, making Netflix worth more than Disney, Comcast,

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Speaker 3: and Warner Brothers Discovery combined.

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Speaker 2: Nathan, Apple is losing more top talent meta Platforms is

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Speaker 2: hired away a pair of key artificial intelligence researchers from

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Speaker 2: the iPhone maker. Sources say the move comes shortly after

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Speaker 2: the social networking giant poach their former boss from Apple

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Speaker 2: and Karen.

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Speaker 3: President Trump's expected to announce policy guidelines for artificial intelligence,

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Speaker 3: calling for easing regulation and expanding energy sources for data centers.

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Speaker 3: The Trump Administration's AI action plan will be largely focused

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Speaker 3: on messaging limited to executive branch actions that will reflect

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Speaker 3: the administration's efforts to promote the adoption of US artificial

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Speaker 3: intelligence globally.

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Speaker 2: Nathan. The total market cap of crypto assets has surged

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Speaker 2: past four trillion dollars for the first time, and follows

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Speaker 2: a sweeping push on Capitol Hill to regulate the sector.

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Speaker 2: In Bloomberg's Michael bar reports.

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Speaker 10: The House pass the first federal legislation to regulate stable coins,

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Speaker 10: backed by President Donald Trump and Republicans. The Senate passed

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Speaker 10: it earlier. Supporters say the legislation imposes federal or state

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Speaker 10: oversight on dollar linked tokens and could unlock faster and

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Speaker 10: cheaper forms of payment. It could also bring legitimacy to

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Speaker 10: a two hundred and sixty five billion dollar market. Critics,

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Speaker 10: including Senator Elizabeth Warren and Representative Maxine Waters, warned that

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Speaker 10: the new stable coin regulatory regime won't do enough to

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Speaker 10: protect consumers. They say it could lead the pressure for

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Speaker 10: gouds bailouts if issuers of the digital tokens fail. Michael

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Speaker 10: Barr Bloomberg Radio.

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Speaker 11: All right, Michael, thank you.

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Speaker 3: More changes are coming to Paramount Global CBS network. You'll

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Speaker 3: notice them if.

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Speaker 11: You stay up for it.

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Speaker 3: The Late Show with Stephen Colbert is going to air

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Speaker 3: its last episode in May of next year. CBS says

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Speaker 3: it is purely a financial decision. It comes days after

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Speaker 3: Colbert condemned Paramount settlement of President Trump's lawsuit over a

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Speaker 3: sixty minutes story. In his first show back from vacation.

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Speaker 3: Colbert called it, quote a big, fat bribe. Paramount is

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Speaker 3: in the process of being acquired by sky Dance Media.

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Speaker 2: Time now for look at some of the other stories

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Speaker 2: making news in New York and around the world, And

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Speaker 2: for that we're joined by Bloomberg's Monica Ricks Monica good morning.

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Speaker 4: Hey, Good morning, Karen.

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Speaker 2: Well.

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Speaker 12: First there was the Senate. Now the House has voted

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Speaker 12: to claw back about nine billion dollars in funding that

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Speaker 12: currently goes to foreign aid and public broadcasting. This happened

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Speaker 12: just a few hours ago on Capitol Hill, Majority Leader

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Speaker 12: Steve Scalise, calling those necessary.

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Speaker 13: Let's finally get control over waste, fraud, and abuse.

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Speaker 10: We started it.

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Speaker 13: In the One Big Beautiful Bill, We're continuing it here,

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Speaker 13: and we're going to continue it through the appropriations process.

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Speaker 12: Democrats say the cuts will hurt America's standing in the

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Speaker 12: world and put residents in rural communities at a disadvantage

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Speaker 12: without access to public media. The White House has unveiled

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Speaker 12: while President why President Trump's displayed swollen ankles and a

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Speaker 12: bruised hand lately. Bloomberg's Amy Morris has details from Washington.

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Speaker 11: President Trump has been diagnosed with chronic venous insufficiency That

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Speaker 11: means damaged valves struggle to keep blood flowing from the

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Speaker 11: legs back to the heart. It is not life threatening,

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Speaker 11: but it could lead to more serious problems. Press Secretary

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Speaker 11: Caroline Levitt on the Medical Exam.

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Speaker 14: Bilateral lower extremity than that. Venus Doppler ultrasounds were performed

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Speaker 14: and revealed chronic venous insufficiency AB nine in common condition,

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Speaker 14: particularly in individuals over the age of seventy.

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Speaker 11: The seventy nine year old Trump has ankle and leg

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Speaker 11: swelling related to the disease and bruising on his hand

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Speaker 11: in Washington, Amy Moore as Bloomberg Radio.

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Speaker 12: Federal immigration officials now have access to personal information on

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Speaker 12: all of the nation's seventy nine million Medicaid participants, including

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Speaker 12: their addresses and Social Security numbers. ICE plans to use

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Speaker 12: that info now to track immigrants who who may not

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Speaker 12: be living in the US legally and at twenty three

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Speaker 12: year olds facing charges now after fighting with a flight

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Speaker 12: attendant and trying to open a plane door mid flight,

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Speaker 12: the sky westflight had to make an emergency landing in

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Speaker 12: Cedar Rapids, Michigan last night. The twenty three year olds

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Speaker 12: facing disorderly conduct and assault, among other charges. Global News

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Speaker 12: twenty four hours a day and whenever you want it

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Speaker 12: with Bloomberg News.

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Speaker 4: Now.

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Speaker 12: I'm Monica Rix and this is Bloomberg.

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Speaker 4: Karen Nathan.

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Speaker 2: All right, Monica, thank you time now for the Bloomberg

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Speaker 2: Sportes out date brought to you by Flushing Bank and

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Speaker 2: here's John stash Hour.

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Speaker 15: Good morning Caring. After the opening ran out of the

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Speaker 15: Open Championship and Royal Port Rush. Five golfers and five

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Speaker 15: different countries shared the lead at four hundred part of

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Speaker 15: the lone American, Harris English, he's got an early tea

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Speaker 15: time today. The South African Christian Buzetenhut is on the

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Speaker 15: course now still four under, and Brian Harmon has now

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Speaker 15: moved into the share of the lead also four under.

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Speaker 15: Scottie Scheffler minus three goes off just after ten o'clock today.

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Speaker 10: Rory McElroy yesterday.

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Speaker 15: Shot one under, felt the support of playing in his

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Speaker 15: native Northern Ireland, you.

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Speaker 16: Know, the support of an entire country right there, which

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Speaker 16: is a wonderful position to be in. But at the

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Speaker 16: same time you don't want to let them done, so

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Speaker 16: you know, there's there's a little bit of outer pressure.

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Speaker 16: I felt like I dealt with it really well today,

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Speaker 16: certainly dealt with it better than I did six years ago,

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Speaker 16: you know. So it was you know, just hopping it

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Speaker 16: off to a good start and getting myself into the tournament.

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Speaker 15: Also one under going into today. John Ram, Shane Lowry,

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Speaker 15: who won that last open at Royal Port Rush, and

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Speaker 15: fifty five year old Phil Mickelson, Baseball's back when we

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Speaker 15: lost all the Red Sox they were red hot, reeling

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Speaker 15: off ten wins in a row. Oh, they'll take on

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Speaker 15: the Cubs in a day game at Wrigularly, the Socks

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Speaker 15: only a game behind the second place Yankees, who played

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Speaker 15: tonight Atlanta. The Mets her home for Cincinnati. Kepla signings

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Speaker 15: of No TJ. Watt in Pittsburgh. Stainfoot with the Steelers

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Speaker 15: three years, one hundred and twenty three million, all but

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Speaker 15: fifteen million of it guaranteed. He'll make slightly more than

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Speaker 15: another defensive lineman, Cleveland's Miles Garrett. Watt will make more

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Speaker 15: than any non quarterback ever has. And Damian Lillard spent

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Speaker 15: eleven years in Portland, went to Milwaukee, got hurt, got released.

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Speaker 15: He's going back to the Trailblazers, although due to the

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Speaker 15: injury he won't play next season. Caitlyn Clark won't play

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Speaker 15: in tomorrow's WNBA All Star Game in Indianapolis. You won't

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Speaker 15: even compete in the three point contest due to her

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Speaker 15: gint injury over forty WNBA players, including Clark, met to

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Speaker 15: discuss labor negotiations, and then put out a statement that said,

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Speaker 15: the only thing more unsustainable than the current system is

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Speaker 15: pretending he can go on forever. John Stasheward Bloomberg Sports,

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Speaker 15: Karen Ethan.

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Speaker 1: Coast to coast on blue Berg Radio, nationwide on Serious XM,

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

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager bringing you a conversation now

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Speaker 3: with the president of the San Francisco Fed Mary Daily.

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Speaker 3: She sat down with Bloomberg's Michael McKee at the Rocky

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Speaker 3: Mountain Economic Summit in Victor, Idaho. They talked about the

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Speaker 3: possibility of rate cuts, recent pressure on Chairman Powell, and

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Speaker 3: the impact of tariffs on the economy.

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Speaker 4: Let's listen in.

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Speaker 17: For me, what is really important is looking at the

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Speaker 17: incoming information.

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Speaker 4: How close we are.

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Speaker 17: I think one of the Pauls said, you know, we're

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Speaker 17: really close. We have an economy that's working, we have

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Speaker 17: solid growth, we have a solid labor market.

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Speaker 4: You know, the consumers.

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Speaker 17: Are spending, but they're you know, making their way in

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Speaker 17: their families. Ultimately, what is still bothersome is not we

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Speaker 17: haven't achieved price stability. And you know, I define price

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Speaker 17: stability this way. I do think it's sort of an

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Speaker 17: ethos part. It's when people don't have to worry about inflation.

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Speaker 17: When I go out and ask people across the twelfth district,

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Speaker 17: across the country, what's your top worry and they stop

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Speaker 17: saying inflation, well, then that's going to be a victory

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Speaker 17: because they suffered for too long. And remember, inflation is

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Speaker 17: like the largest tax people pay.

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Speaker 4: It's an unpredictable tax.

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Speaker 17: You're on a treadmill, you earn well, you've invest in

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Speaker 17: your business, and inflation eroads you're well being. So I

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Speaker 17: think ultimately that's what we have to think about. And

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Speaker 17: that's really enough to think about, frankly, and that's where

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Speaker 17: my focus is. So other things are not distracting us

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Speaker 17: from our core missions, and our core missions, as we

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Speaker 17: all know, have come from Congress.

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Speaker 18: Essentially, you're saying we are going to remain focused on inflation.

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Speaker 18: We're not going to consider cutting rates until we are

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Speaker 18: sure inflations.

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Speaker 4: I did not say that.

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Speaker 18: I have punny words in her mouth to make it

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Speaker 18: easier for the headline writers.

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Speaker 17: I know that, and so that's why I did not

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Speaker 17: say that so that they understand the next part of that.

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Speaker 4: No, seriously, I think right.

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Speaker 17: Now, when I look at the economy and policy, I

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Speaker 17: see them as both in a good place. When I

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Speaker 17: look out, we really have interest rates for a significant

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Speaker 17: number of years now in restrictive territory, and what we

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Speaker 17: have is an underlying economy that is responding those higher

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Speaker 17: interest rates.

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Speaker 4: You have growth slowing.

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Speaker 17: The broathy labor market that was pervasive after the pandemic

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Speaker 17: has now moved to a more sustainable place. People are

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Speaker 17: getting jobs, but firms are finding it easier to find

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Speaker 17: workers and importantly keep workers so that they're not constantly

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Speaker 17: on that revolving door of train and work of the

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Speaker 17: worker leave. So I think those are all good positions.

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Speaker 4: Then we have inflation coming down.

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Speaker 17: And if we extract our move away from just the

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Speaker 17: goods price inflations, which do show those numbers have been showing,

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Speaker 17: and certainly showed in this week's print, the effective tariffs

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Speaker 17: some of those being passed through. But if you look

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Speaker 17: at the other areas of inflation, you just don't see

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Speaker 17: that inflation is pushing back up. You see it gradually

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Speaker 17: going down, and housing services inflation, which has long been elevated,

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Speaker 17: has been coming down.

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Speaker 4: Over this year.

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Speaker 17: Services inflation without housing has been coming down, slowly but

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Speaker 17: coming down. So I see these is the result of

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Speaker 17: the policy that we have in place. But at some point,

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Speaker 17: if you hold the economy too tight the reins were

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Speaker 17: in Horse Country.

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Speaker 4: If you hold the bridle too tight, you actually end

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Speaker 4: up stopping.

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Speaker 17: And if you stop, then you take the problem people

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Speaker 17: did have, which was inflation, and turn it into a

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Speaker 17: problem that they don't have, which is the labor market.

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Speaker 18: Could you explain to this audience, and of course the

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Speaker 18: guy at sixteen hundred Pennsylvania Avenue if he's listening, how

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Speaker 18: you put all that together and decide when the winterst

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Speaker 18: rates come down.

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Speaker 17: Well, there's always been three scenarios that were possible. So

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Speaker 17: the first scenario was that we'd get the tariff effect

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Speaker 17: and it would spill over into all other sectors. So

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Speaker 17: if the price of a tariff good goes up, then

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Speaker 17: your person cutting your hair, since we were talking about.

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Speaker 4: Barber's earlier, raises his or her prices, and.

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Speaker 17: Suddenly you've got spillover that would make it more persistent.

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Speaker 17: We haven't seen any evidence that that's occurring. And I

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Speaker 17: think that the house price inflation, the house services inflation,

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Speaker 17: and the services inflation coming down reassures you that we're

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Speaker 17: not getting that persistent component.

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Speaker 4: So then there's two other scenarios.

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Speaker 17: One is that you get the tariff effect and its

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Speaker 17: it's relatively contained and it becomes a one off. And

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Speaker 17: the second is you just don't see much of the

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Speaker 17: effect because what happens is that as the tariffs settle in.

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Speaker 4: To whatever level they're going to be.

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Speaker 17: You know, firms who are importing from other countries say

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Speaker 17: you take half, I'll take half to the country. Then

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Speaker 17: down the by chain or the production chain, you're splitting

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Speaker 17: it all the way so that by the time it

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Speaker 17: hits consumers, it's a more muted impact than.

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Speaker 4: What is the announced tariffs.

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Speaker 17: You know, one of the pieces of evidence we have

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Speaker 17: for that is that the effective teriff right as of

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Speaker 17: last week was calculator around sixteen percent, but tariff revenue

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Speaker 17: is only eight percent. So that tells you there's some splitting,

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Speaker 17: there's some leakages, some workarounds.

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Speaker 4: Companies are very innovative figuring in other ways.

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Speaker 17: To do things, and you know, this is a global shock,

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Speaker 17: and so they are All companies across the globe are

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Speaker 17: figuring it out.

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