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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, Karen.

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Speaker 3: We are less than three weeks from the Federal Reserve's

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Speaker 3: next interest rate decision, and one of the leading candidates

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Speaker 3: to replace j. Powellis FED chair next year is calling

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Speaker 3: for a quarter point rate cut, not a half point.

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Speaker 3: FED Governor Christopher Waller spoke at a conference hosted by

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Speaker 3: the Economic Club of Miami.

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Speaker 4: Well, I judge that the FMC should have begun this

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Speaker 4: process in July based on the data in hand, I

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Speaker 4: don't believe that a cut of larger than twenty five

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Speaker 4: basis points is needed in September. Now. That view, of course,

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Speaker 4: could change, if the employment report for August do out

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Speaker 4: a week from tomorrow points to a substantially weakening economy

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Speaker 4: and inflation remains well contained.

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Speaker 3: FAT Governor Chris Waller voted against this month's decision to

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Speaker 3: hold the Fed's bench great steady. He says he anticipates

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Speaker 3: more cuts over the next three to six months. While

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Speaker 3: those remarks are the first by a top FED official

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Speaker 3: since President Trump moved this week to fire Lisa Cook,

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Speaker 3: and now.

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Speaker 2: Nathan Matt moved to fire Governor Cook is headed for

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Speaker 2: a showdown in court. A federal judge has said a

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Speaker 2: hearing for ten this morning Wall Street Time on Cook's

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Speaker 2: request for a restraining order to keep her on the

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Speaker 2: Fed's Board of Governors. And now Cook is offering an

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Speaker 2: explanation for the mortgage dispute at the center of the

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Speaker 2: case in her lawsuit against the president. But yet more

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Speaker 2: from Bloomberg Legal reporter Eric Larson.

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Speaker 5: She did not explicitly deny the allegations, but clearly at

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Speaker 5: this stage in the case, they're signaling a potential defense here,

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Speaker 5: which is that not only could this be a clerical error,

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Speaker 5: but that it wasn't material to any decisions that were

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Speaker 5: made on these mortgages, that no one was harmed by it.

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Speaker 5: And really that's regardless. It's not cause to fire her

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Speaker 5: because these mortgages were done a year before she joined

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Speaker 5: the board and has nothing to do with her job.

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Speaker 2: And as Bloomberg Legal reporter Eric Larson, meanwhile, the Trump

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Speaker 2: administration is putting even more pressure on Cook. Federal Housing

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Speaker 2: Finance Agency Director Bill Poulti has sent a new criminal

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Speaker 2: referral over a third property in Massachusetts. Poulty says Cook

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Speaker 2: originally claimed it was a second home, but later listed

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Speaker 2: it as an investment property.

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Speaker 3: Meanwhile, Karen, it looks like the Trump administration's plans to

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Speaker 3: fast track Stephen Myron's confirmation to the FED Board is

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Speaker 3: working out. We get more on that from Bloomberg's Denise Pellegrini.

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Speaker 6: The Senate Banking Committee will hold a hearing September fourth

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Speaker 6: on Myrinten's confirmation as FED Governor to replace Audreana Kugler

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Speaker 6: after she resigned. Myronen will likely be grilled over President

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Speaker 6: Hump's economic policies and efforts to influence the Fed. But

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Speaker 6: Democrats also say privately they can't block Myron's ascension on

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Speaker 6: their own, and under the rules they can only hold

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Speaker 6: things up briefly in the committee and then only for

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Speaker 6: a few days on the Senate floor. Also, remember no

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Speaker 6: Republicans voted against Myron as chair of the Council of

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Speaker 6: Economic Advisors earlier this year, meaning Myron could well be

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Speaker 6: confirmed as FED Governor before the Bank's two day rate

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Speaker 6: setting meeting in mid September. Denise Pelgriny Bloomberg Radio, all.

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Speaker 2: Right, Denise, thank you. The shake up at the Centers

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Speaker 2: for Disease Control continues. Health and Human Services Secretary Robert F.

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Speaker 2: Kennedy Junior has named his top deputy, Jim O'Neill, as

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Speaker 2: acting CDC director. This is after the White House fire

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Speaker 2: the previous director, Susan Minares, less than a month into

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Speaker 2: the job after she confronted Kennedy over his vaccine stance.

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Speaker 2: Kennedy says the agency needs an overhaul.

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Speaker 7: There's a lot of trouble at CDC, and it's going

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Speaker 7: to require getting rid of some people over the long

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Speaker 7: term in order for us to change the institutional culture

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Speaker 7: and bring back pride and self esteem, make that agency

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Speaker 7: the stellar agency that it's always been.

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Speaker 2: How Secretary Robert F. Kennedy Junior spoke at an event

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Speaker 2: in Texas. Some Senate Republicans have expressed alarm over Manarez

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Speaker 2: is firing. The Wall Street Journal report. Senator Built Cassidy

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Speaker 2: is called on AHHS to postpone a meeting of its

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Speaker 2: Vaccine Advisory Committee next month due to questions about its membership.

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Speaker 3: Turning to the economy now, Karen, Inflation is in focus

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Speaker 3: this morning with the FED. With the release of the

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Speaker 3: Fed's preferred price gauge Bloomberg's Michael McKee reports July's PCE

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Speaker 3: print is likely to show quicker inflation.

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Speaker 8: The Fed's two percent inflation target is based on the

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Speaker 8: PCE index, but today's reading likely won't sway any votes

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Speaker 8: at the FED September seventeenth meeting. PCE is put together

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Speaker 8: from data collected in other inflation surveys. After the consumer

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Speaker 8: and producer price indexes are released, economists can calculate a

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Speaker 8: close approximation of what PCE will be. The forecast is

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Speaker 8: for a slight decline in month over month inflation and

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Speaker 8: no change in the annual figure. Any significant deviation might

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Speaker 8: generate a market reaction, but more likely look to the

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Speaker 8: September eleventh release of the CPI for guidance on the FED.

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Speaker 8: Michael McKee Bloomberg Radio.

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Speaker 2: Allright, Mike, thank you well. Futures are lower ahead of

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Speaker 2: that key inflation report. Yesterday, the S and P five

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Speaker 2: hundred closed above sixty five hundred for the first time.

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Speaker 2: Keith Lerner, the chief market strategist at Truest Advisory Services,

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Speaker 2: remains bullish on tech.

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Speaker 9: From the lows in April, the S and P is

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Speaker 9: up thirty percent. The tech sector is up about fifty one.

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Speaker 9: The term was still bullsh on technology, with still bullsh

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Speaker 9: on the AI theme.

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Speaker 2: And truest advisory services Keith Lerner. This is the last

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Speaker 2: trading day of August. Over the last seventy five years,

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Speaker 2: the S and P five hundred has posted an average

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Speaker 2: drop of sevent tenths percent in September, making it the

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Speaker 2: worst performing month for stocks.

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Speaker 3: Let's see how some individual stocks are performing this morning.

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Speaker 3: Karen Shares of Dell are down more than six percent.

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Speaker 3: The computer maker reported fewer sales of artificial intelligence servers

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Speaker 3: and lower profit margins than analyst estimates. Shares of Marvel

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Speaker 3: are down thirteen percent. Data center revenue missed. On the

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Speaker 3: flip side, shares of Petco are surging eighteen and a

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Speaker 3: half percent. The pet retailer raised its earnings targets for

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Speaker 3: the year.

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Speaker 2: And now to the latest on the war in Ukraine,

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Speaker 2: Nathan German and Chancellor Frederick Mertz says a meeting between

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Speaker 2: Ukrainian President Vladimir Zelenski and Russia's Vladimir Putin is unlikely

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Speaker 2: to materialize. The news comes as Russia unleashed a new

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Speaker 2: wave of drone and missile strikes on Kiev and defiance

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Speaker 2: of US calls for an end to the fighting. White

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Speaker 2: House Press Secretary Caroline Levitt says President Trump is not

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Speaker 2: happy or surprised.

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Speaker 10: This killing unfortunately, will continue as long as the war continues,

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Speaker 10: which is why the President wants it to end, and

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Speaker 10: that's why he's worked harder than anyone to end this war.

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Speaker 10: But perhaps both sides of this war are not ready

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Speaker 10: to end.

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Speaker 2: It themselves, white House Press Secretary Caroline Levitt. Later today,

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Speaker 2: senior Ukrainian officials are expected to travel to the US

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Speaker 2: to exchange ideas on post war security with members of

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Speaker 2: the Trump administration. Time now for look at some of

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

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Speaker 2: the world, and for never joined by Bloomberg's Michael Barr Michael,

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Speaker 2: Good Morning.

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Speaker 11: Good morning Karen. Police the Minneapolis say they are looking

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Speaker 11: for a clear motive and Wednesday shooting at a Minneapolis

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Speaker 11: Catholic church that left two children dead and seventeen others injured.

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Speaker 11: The shooter, twenty three year old Robin Westman, died of

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Speaker 11: an apparent self inflicted gunshot wound at the scene. Police

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Speaker 11: characterized Westman as full of hate. Authorities say they recovered

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Speaker 11: one hundred and sixteen rifle rounds at the scene, along

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Speaker 11: with three shotgun shells. Meanwhile, the father of one of

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Speaker 11: the two children killed in the shooting is asking for

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Speaker 11: his son to be remembered for who he was and

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Speaker 11: not as the victim of a mass shooting. Jesse Merkle's son,

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Speaker 11: eight year old Fletcher Merkele, was killed inside an Unciation

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Speaker 11: Catholic church.

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Speaker 12: While the whole in our hearts and wives will never

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Speaker 12: be filled. I hope been time our family can find healing.

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Speaker 12: I pray that the other victims family can find some

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Speaker 12: Semblents of the.

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Speaker 11: Scene also killed ten year old Harper Moyski. Reverend Al

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Speaker 11: Sharpton led a protest march on Wall Street, urging corporations

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Speaker 11: to resist the Trump administration's push to rollmack DEEI initiatives.

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Speaker 11: Sharpton was joined by thousands of people, including leaders of

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Speaker 11: church unions and organizations. Reverend Sharpton called President Trump and

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Speaker 11: anti dreamers who want to cut Medicaid and snap to

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Speaker 11: pay for tax breaks.

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Speaker 13: For the rich, why didn't we come to Wall Street?

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Speaker 7: Since you have benefited from Trump.

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Speaker 11: We come to tell you your benefit pays a number.

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Speaker 1: We're not going back.

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Speaker 11: Among those who participated in the march include New York

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Speaker 11: Democratic mayoral candidate Zoron Memdani. Many Americans are traveling this

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Speaker 11: holiday weekend trip as Iike Sadiaz has a pro tip

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Speaker 11: on when you should leave if you're driving.

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Speaker 14: Properably, anytime before lunchtime and on Saturday before ten am,

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Speaker 14: because Saturday we are expecting between ten am and six

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Speaker 14: pm to be extra busy because if people don't want

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Speaker 14: to take off work on.

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Speaker 11: Friday, gas prices are at a five year low. Global

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Speaker 11: news twenty four hours a day, and whenever you wanted

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Speaker 11: with Bloomberg News. Now, I'm Michael Barr, and this is

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Speaker 11: Bloomberg Karen.

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Speaker 8: Thanks Michael.

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Speaker 2: Time now for our Bloomberg Sports dating. For that, we

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Speaker 2: bring in John Stashower.

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Speaker 11: Thanks Daron.

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Speaker 15: A blockbuster trade in the NFL, Dallas's pass rusher Michael

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Speaker 15: Parsons wanted a new contract, demanded a trade, and he

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Speaker 15: got one. He's going to the Green Bay Packers. The

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Speaker 15: Cowboys in return get defensive tackled Kenny Clark and first

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Speaker 15: round draft picks the next two years. Parsons has already

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Speaker 15: agreed to a new deal with the Packers for four

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Speaker 15: years and one hundred and eighty eight million dollars a

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Speaker 15: US Open match that ended just before two am. It

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Speaker 15: lasted four and a half hours. Tommy Paul won five cents.

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Speaker 15: That's your Bloomberg Sports update.

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Speaker 2: Stay with us. More from Bloomberg Daybreak coming up after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius 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 6: Good morning.

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Speaker 3: I'm Nathan Hager, and President Donald Trump's push for more

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Speaker 3: influence on the Federal Reserve is headed for a showdown

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Speaker 3: in federal court this morning. A hearing is set for

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Speaker 3: ten am Wall Street time on Federal Reserve Governor Lisa

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Speaker 3: Cook's request for a restraining order against the President's moved

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Speaker 3: to fire her for cause over her mortgages. White House

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Speaker 3: Press Secretary Caroline Levitt says, the President is ready.

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Speaker 10: He has the cause that he needs to fire this individual.

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Speaker 10: He laid it out in the letter that he provided

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Speaker 10: to her into the public as well, and so we'll

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Speaker 10: continue to fight this battle.

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Speaker 3: That was White House spokeswoman Caroline Levitt. And joining us

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Speaker 3: now is Terry Haines, the founder of Pangaea policy. Great

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Speaker 3: to speak with you this morning, Terry. But that really

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Speaker 3: is the question, isn't it whether the president has the cause?

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Speaker 13: Good morning, Good morning, Nathan. You know, I'll give you

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Speaker 13: a threshold. The threshold is really factual. You know, those

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Speaker 13: of us with certain hair color will remember Jack Webb

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Speaker 13: and Dragnet talking about just the facts. Well, this is

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Speaker 13: just the facts. Whether or not the president can do

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Speaker 13: what the President says he intends to do, it depends

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Speaker 13: on the facts surrounding the Cook situation. So far, we

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Speaker 13: don't have any of those facts, and I would urge

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Speaker 13: people not to assume that they understand what's going on.

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Speaker 13: It's developing situations still, as recent headlines show, So I'd

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Speaker 13: hold off on that. And that also matters for in

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Speaker 13: court for standing purposes. If you're asking somebody court not

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Speaker 13: to remove you and you haven't been removed, that's another

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Speaker 13: level of complexity.

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Speaker 11: Yeah.

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Speaker 3: Well, we've seen from the lawsuit that Governor Cook has

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Speaker 3: filed against this move. She's saying that it could amount

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Speaker 3: to a clerical error and that the president's attempt to

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Speaker 3: fire her is a power grab that could do irreparable

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Speaker 3: harm to the US economy. What do you make of

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Speaker 3: Governor Cook's defense.

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Speaker 13: Here as it's developing. I think she's ultimately going to

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Speaker 13: need to prove that She's not going to have to

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Speaker 13: prove that today in court, of course. Firstly, Secondly, I

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Speaker 13: think the president's ability to fire for cause here depends

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Speaker 13: entirely on what those facts are are. If there's a

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Speaker 13: lot more and the behavior is a lot worse than

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Speaker 13: has already been reported, then President's case gets stronger. But

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Speaker 13: if the case the case is weaker, the case is

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Speaker 13: non existent, then the president really doesn't have the ability. Thirdly,

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Speaker 13: I think it's a mistake for folks to think that

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Speaker 13: this is about Trump versus the FED or Trump versus

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Speaker 13: Cook on two regards. One, the FED is a congressional

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Speaker 13: agency exercises congressional power, so Congress is going to have

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Speaker 13: a lot say about that. And secondly, you're you're in

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Speaker 13: a situation here where I don't think they're I don't

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Speaker 13: think FED independence today is presented as kind of the

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Speaker 13: existential question. You're wrapping up the removal of one governor

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Speaker 13: with FED independence. I think you're barking up the wrong tree,

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Speaker 13: and I think you're virtual signaling more than a little

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Speaker 13: bit Frankly.

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Speaker 3: Now, well, there has been some reporting from Bloomberg News

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Speaker 3: this week that the President is considering pulling levers on

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Speaker 3: vetting a FED bank presidents as well. What could this

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Speaker 3: continued scrutiny of the FED bean for markets?

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Speaker 13: Well, I think the I understand people are reporting those things,

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Speaker 13: and wouldn't surprise me if they're The administration is looking

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Speaker 13: at all kinds of alternatives. But at the same time,

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Speaker 13: what you've seen with the governor so far, you know,

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Speaker 13: in the midst of all the all the penell attacks,

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Speaker 13: is that they haven't changed their position, you know, and

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Speaker 13: even even a whiller today as you report, suggests a

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Speaker 13: quarter point rather than a half point is appropriate. It's

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Speaker 13: something which I'm sure doesn't please the White House, although

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Speaker 13: he notes that they're more more data will come in

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Speaker 13: next week that may change his view. But these folks

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Speaker 13: have not shown that they're cowed, number one, so I

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Speaker 13: expect them to continue not to be cowed. Secondly, Trump

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Speaker 13: can nominate anybody who wants to the FED, but it's

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Speaker 13: the Senate. It's up to the Senate to approve them,

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Speaker 13: and the Senate has shown even the Democratic Senate and

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Speaker 13: Biden days has shown they're not rubber stamps. As the

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Speaker 13: kerfuffle around bloom raskin for the show who ultimately had

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Speaker 13: to drop.

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