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

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Speaker 2: Good morning.

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 1: stories we're following today.

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Speaker 2: Karen, it is the big report Wall Street's been waiting

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Speaker 2: for all week, the August Jobs report. Economists are looking

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Speaker 2: for a gain of one hundred and sixty five thousand jobs,

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Speaker 2: with the unemployment rate ticking down a tenth to four

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Speaker 2: point two percent. We get a preview from Bloomberg's Michael McKee.

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Speaker 3: And now the main event. August Jobs is the biggest

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Speaker 3: data point ahead of a data dependent fed's next meeting,

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Speaker 3: at which they're expected to begin lowering the nation's benchmark

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Speaker 3: interest rate. How much they cut will depend on today's numbers,

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Speaker 3: or so. Wall Street thinks week job creation and or

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Speaker 3: a rise in the unemployment rate will pressure them to

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Speaker 3: lower the rate range by half a percentage point. The

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Speaker 3: opposite makes the case for just a quarter point reduction.

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Speaker 3: Something else to watch, average weekly hours. If the economy

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Speaker 3: is indeed slowing a lot, companies may cut back on

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Speaker 3: ours work for now rather than employees. Michael McKee, Bloomberg Radio.

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Speaker 1: All right, Mike, thank you, wil Chicago FED President Austin

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Speaker 1: Golesby sees mounting warning signs from the labor market. Speaking

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Speaker 1: to Dow Jones market Watch, Golesby said it's pretty clear

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Speaker 1: that the path is not just rate cuts soon, but

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Speaker 1: multiple cuts over the next twelve months. That sentiment was

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Speaker 1: echoed by billionaire investor John Paulson, who told Bloomberg Shanali

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Speaker 1: Bosik that the FED waited too long to ease.

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Speaker 4: Inflation Now is somewhere around three percent. Interest rates are

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Speaker 4: five percent, so real interest rates are too hot. So

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Speaker 4: the FED I think, waited too long to bring interest

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Speaker 4: rates down. So I think the likely course of action

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Speaker 4: is going forward is the FED will start to cut

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Speaker 4: interest rates.

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Speaker 5: What should they be by the end of twenty twenty five.

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Speaker 4: It's difficult to predict, but my best guesstimate would be

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Speaker 4: around three percent, perhaps two and a half percent.

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Speaker 1: John Paulson is known for making a massive bed against

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Speaker 1: the mortgage bonds before the two thousand and eight financial crisis.

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Speaker 1: He's been among those talked about as a potential Treasury

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Speaker 1: secretary if Donald Trump wins the presidency, and Karen.

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Speaker 2: John Paulson was among those in the audience as former

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Speaker 2: President Trump delivered a speech to Wall Street's elite at

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Speaker 2: the Economic Club of New York. The centerpiece of his

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Speaker 2: address was a promise for a big corporate tax cut.

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Speaker 6: My plan calls for expanded R and D tax credits,

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Speaker 6: one hundred percent bonus appreciation expensing for new manufacturing investments,

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Speaker 6: and a reduction in the corporate tax rate from twenty

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Speaker 6: one percent to fifteen percent solely for companies that make

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Speaker 6: their product in America.

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Speaker 2: And that call four of fifteen percent corporate tax would

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Speaker 2: be a big drop from the twenty one percent in

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Speaker 2: Trump's own twenty seventeen tax law. The former president also

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Speaker 2: made a pitch for Elon Musk to take a role

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Speaker 2: in his administration.

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Speaker 6: I will create a Government Efficiency Commission task with conducting

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Speaker 6: a complete financial and performance audit of the entire federal

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Speaker 6: government and making recommendations for drastic reforms. Need to do it,

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Speaker 6: and Elon, because he's not very busy, has agreed to

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Speaker 6: head that task force.

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Speaker 2: Former President Trump's speech to the Economic Club comes as

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Speaker 2: the latest Bloomberg News Morning Consult poll shows Trump's tax

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Speaker 2: ideas resonating with swing state voters. Forty six percent say

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Speaker 2: they trust Trump more on taxes, compared to forty four

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Speaker 2: percent for Vice President Kamala Harris.

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Speaker 1: Well, Nathan and Update Now on a pair of back

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Speaker 1: to back legal hearings involving the former president and Bloomberg's

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Speaker 1: Amy Morris reports.

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Speaker 7: Today's hearing is before the Second US Circuit Court of Appeals,

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Speaker 7: which will hear arguments in Trump's appeal of a jury's

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Speaker 7: verdict last year that ordered him to pay five million

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Speaker 7: dollars to writer Aging Carroll after finding him liable for

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Speaker 7: sexually assaulting and defaming her. Yesterday's hearing was over whether

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Speaker 7: the former president can be prosecuted for election interference after

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Speaker 7: the Supreme Court indicated that presidents have some immunity. Special

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Speaker 7: counsel Jacksmith's office has until September twenty sixth to file

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Speaker 7: an opening brief on that issue. Trump's lawyers have to

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Speaker 7: respond by October seventeenth. In Washington, Amy Morris Bloomberg Radio.

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Speaker 8: Thank you, Amy.

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Speaker 2: President Biden's son Hunter is avoiding another federal trial with

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Speaker 2: a surprise move. He has pleaded guilty to tax charges

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Speaker 2: hours before jury selection was supposed to begin in Los Angeles.

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Speaker 2: Abby Lowell is hunter Biden's lawyer.

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Speaker 9: Like millions of Americans, Hunter was late in filing and

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Speaker 9: paying his taxes. Unlike those millions of Americans, he was

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Speaker 9: charged criminally for his failures that occurred during the depths

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Speaker 9: of his addiction to drugs and outcome.

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Speaker 2: Abby Lowell says Hunter Biden wanted to spare his family

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Speaker 2: the pain of another trial after he was convicted on

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Speaker 2: federal gun charges in Delaware earlier this year. Biden now

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Speaker 2: faces up to seventeen years in prison on the tax

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Speaker 2: charges when he sentenced in December. Federal sentencing guidelines mean

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Speaker 2: he will probably face much less time than that.

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Speaker 1: Well, Nathan. The money keeps pouring in for Kamala Harris.

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Speaker 1: She raised three hundred and sixty one million dollars in August.

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Speaker 1: That's almost three times more than Trump did last month.

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Speaker 1: Harris has now raised six hundred and fifteen million since

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Speaker 1: President Joe Biden announced he would stand aside on July

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Speaker 1: twenty first. The flood of money for Harris highlights hower

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Speaker 1: candidacy has galvanized Democrats, fueling a surge in pulling numbers

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Speaker 1: and in fundraising.

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Speaker 2: Turned back to markets now Karen Warren Buffett continues to

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Speaker 2: unload shares of Bank of America. Bloomberg's John Tucker is

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Speaker 2: here with the details. Good morning, John, Do we know

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Speaker 2: why Buffett is selling?

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Speaker 10: Simply put no, Nathan A. Buffett has offered no public

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Speaker 10: explanation for his decision to pull back. In the latest

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Speaker 10: round of these transactions, Buffett's Berkshire Hathaway liquidate at seven

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Speaker 10: hundred and sixty million dollars of the stock since Tuesday,

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Speaker 10: So this extends his sales at Bank of America since

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Speaker 10: mid July. The selling means he's reaped about six point

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Speaker 10: nine seven billion dollars. This was all disclosed in regulatory filing. Now,

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Speaker 10: if Berkshire keeps selling at stake in the second largest

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Speaker 10: US bank could soon slide below ten percent, that's the

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Speaker 10: threshold for quick disclosures. Once he controls less than that,

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Speaker 10: the transactions become a little murky. The ninety four year

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Speaker 10: old began building Berkshire's investment in Bank of America with

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Speaker 10: a five billion dollar deal way back in twenty and eleven.

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Speaker 10: Know you are coming, John Tucker, Bloomberg.

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Speaker 1: Radio, All right, John, thank you well. Shares a broadcom

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Speaker 1: er down about ten percent in early trading that ship

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Speaker 1: supplier for Apple and other big tech companies, delivering a

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Speaker 1: disappointing sales forecast it was hurt by the portion of

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Speaker 1: its business that is not tied to artificial intelligence. It

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Speaker 1: is time now for a look at some of the

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

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Speaker 1: and for that we're joined by Bloomberg's Michael Barr. Michael,

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Speaker 1: good Morning, Good morning, Karen.

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Speaker 11: The fourteen year old boy accused of fatally shooting four

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Speaker 11: people at a Georgia high school is expected to make

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Speaker 11: his first court appearance today. Colt Gray has been charged

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Speaker 11: as an adult with four counts of murder. Authority said

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Speaker 11: the teen opened fire at Appalachi High School in winder

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Speaker 11: just outside Atlanta, killing two students and two teachers. Nine

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Speaker 11: others were wounded. Meanwhile, his father, Colin Gray, was also

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Speaker 11: arrested for allowing his son to possess a weapon. Georgia

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Speaker 11: Bureau of Investigation director Chris.

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Speaker 12: Hosey Colin is Colt Gray's father that was arrested yesterday.

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Speaker 12: He is charged with a following four counts of involuntary manslaughter,

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Speaker 12: two counts of second degree murder, and eight counts of

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Speaker 12: cruelty to children.

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Speaker 11: GBI director Chris Hosey says Colin Gray, who is fifty

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Speaker 11: four knowingly allowed his son, Colt to possess a weapon.

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Speaker 11: The FBI says they received tips last year about possible

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Speaker 11: threats posted to social media by the teenager, but authority

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Speaker 11: said Colt Gray denied ever making the post, and no

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Speaker 11: arrests were made lacking probable cause. Secretary of State Antony B.

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Speaker 11: Lincoln said he expects the US and other mediators to

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Speaker 11: present a new proposal for a hostage exchange and ceasefire

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Speaker 11: between Israel and Amas in the coming days. Secretary Blincoln

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Speaker 11: said every day without an agreement makes the ceasefire and

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Speaker 11: hostage release harder to reach.

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Speaker 13: Close as I believe we are to getting a ceasefire agreement.

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Speaker 8: Every day that.

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Speaker 13: Goes by where it is not finalized and the parties

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Speaker 13: don't say yes period is a day in which something

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Speaker 13: else happens and there is an intervening event which simply

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Speaker 13: pushes things off.

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Speaker 11: Secretary Blincoln made his comments while in Haiti. Blincoln also

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Speaker 11: announced another forty five million dollars in USA to Haiti.

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Speaker 11: Sweeping federal raids targeted several top mayoral aids and officials

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Speaker 11: In New York City. Federal authorities issued su poenas and

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Speaker 11: sees new York City Police Commissioner Edward Caban's cell phone.

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Speaker 11: The Mayor's Chief Council says there is there's no indication

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Speaker 11: Mayor Adams is the target of any investigation. For months,

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Speaker 11: the FEDS have been investigating whether Adams and his twenty

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Speaker 11: twenty one campaign took a legal foreign money, but according

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Speaker 11: to ABC, this investigation is different. Global News twenty four

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Speaker 11: hours a day, whenever you want it with Bloomberg News Now.

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Speaker 11: I'm Michael Barr. This is Bloomberg Cameron.

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Speaker 1: Sorry, Michael Barr, thank you time now for the Bloomberg

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Speaker 1: Sports Update, and we welcome back John stash Hour, John, Good.

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Speaker 14: Morning, Good morning, Karen.

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Speaker 11: Hecky be a way to start a season.

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Speaker 14: Rematch of last year's AS Championship game, quarterbacks with multiple

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Speaker 14: MVPs and the game literally not decided until the final play.

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Speaker 14: The Ravens and Chiefs both scored on their first possessions

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Speaker 14: of the season. Kansas City went up by ten. Baltimore

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Speaker 14: was down seven when it took over and its own

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Speaker 14: thirteen yard line out of two minutes left, the Ravens drove.

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Speaker 14: It appeared that Lamar Jackson had hooked up with Isaiah

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Speaker 14: Likely on a touchdown, but was zero's on the clock.

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Speaker 14: Replay determined likely had his toe out of bounds. The

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Speaker 14: Chiefs won twenty seven to twenty. Patrick Mahomes twenty of

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Speaker 14: twenty eight rookie Xavier Worthy two Casey touchdowns, wanted to

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Speaker 14: catch the other on a run. Jackson in defeat ran

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Speaker 14: for a game high hundred and twenty two yards come back.

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Speaker 14: At the US Open, Jessica Pagoula shrounced in the first

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Speaker 14: set by Carolina Macoba six to one. She came back

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Speaker 14: won the next two sixty four six ' two.

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Speaker 15: Looking a little rough there for a while, but somehow

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Speaker 15: I've found away and was actually able to play some

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Speaker 15: really good tennis and keep that momentum, you know, a

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Speaker 15: lot through that third set and close it out. But yeah,

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Speaker 15: I thought in the third we had some really good

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Speaker 15: tennis under the second and third. But yeah, happy just

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Speaker 15: with the way I was able to compete.

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Speaker 14: So Pagoula, who was in her first Grand Slam semi

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Speaker 14: final that on the Open final tomorrow, will take on

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Speaker 14: Arena Sablenka. She took out Mma Navarro the American, but

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Speaker 14: with Pegoula's win and with two Americans, Taylor Fritz and

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Speaker 14: Francis Tiafo facing off Antonit's men Semi's an American will

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Speaker 14: be in both singles finals. The Mets were off, will

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Speaker 14: host Cincinnati tonight, going for an eighth straight winner. Now

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Speaker 14: tied with Atlanta Yankees first series at Wrigley fieldsince twenty

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Speaker 14: seventeen day game with the Cubs. John stashed with Bloomberg

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Speaker 14: Sports Karen 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. This is Bloomberg Daybreak.

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Speaker 2: Good morning, I'm Nathan Hager, continuing our focus on politics

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Speaker 2: and the economy with hedge fund billionaire John Paulson. He

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Speaker 2: joined Bloomberg Schanelli Bassek for a conversation on the Fed

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Speaker 2: interest rates and Donald Trump. Paulson has served as an

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Speaker 2: economic advisor to the former president. The interview began with

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Speaker 2: a question about the deficit. Let's listen in.

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Speaker 4: I'm not that concerned because the reduction in corporate taxes

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Speaker 4: was just for a segment of the corporate population, and

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Speaker 4: it concern those that are involved in US manufacturing overall. Currently,

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Speaker 4: we have about a two trillion dollar deficit under the

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Speaker 4: current administration. President Trump feels confident that could be reduced

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Speaker 4: several ways. One is through the revenue earned from tariffs,

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Speaker 4: which could be substantial. Two is by cutting wasteful spending.

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Speaker 4: The most important item he alluded to was the Green

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Speaker 4: New Deal, which over time adds up to somewhere around

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Speaker 4: a trillion in spending. And the third is not providing

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Speaker 4: federal benefits to illegal immigrants. So net, these revenue generation

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Speaker 4: and savings will offset any minor adjustments to the tax code.

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Speaker 5: You have obviously been a very large supporter of the

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Speaker 5: former president in this cycle. What underpins your faith in him?

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Speaker 4: First of all, his policies, which under his administration were

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Speaker 4: very successful. While people or these studies referred to, are

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Speaker 4: concerned about potential inflation or deficits. Under his four years,

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Speaker 4: the average annual inflation was only one point nine percent,

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Speaker 4: interest rates were very low, and oil prices were very low,

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Speaker 4: and real wages for the average worker increased. Under the

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Speaker 4: Biden administration, which is supposed to be for the average worker,

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Speaker 4: real wages declined because inflation was so high, interest rates

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Speaker 4: are much higher, and oil prices are much higher. So

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Speaker 4: when you look at the benefits four years under Trump

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Speaker 4: or four years under Biden, the average American has done

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Speaker 4: much better under Trump.

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Speaker 5: I also want to talk about interest rates because at

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Speaker 5: the end of the day, there has been a lot

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Speaker 5: of concern on Wall Street about what a Trump administration

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Speaker 5: would mean when it comes to the Federal Reserve. There was,

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Speaker 5: of course, that Wall Street Journal report a number of

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Speaker 5: months ago that question whether the Federal Reserve would remain independent,

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Speaker 5: And then we also have the former president commenting in

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Speaker 5: an interview with Bloomberg as well, saying that the President

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Speaker 5: can certainly be talking about interest rates because he has

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Speaker 5: good instincts. That doesn't mean he's calling the shot, but

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Speaker 5: it does mean he should have a right to talk

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Speaker 5: about it like anyone else. Do you share that concern

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Speaker 5: that you could potentially damage the reputation of the Federal

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Speaker 5: Reserve as an independent organization.

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Speaker 4: No, I don't share that concern. I think it is

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Speaker 4: important for the President and the White House and the

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Speaker 4: Treasurer Secretary to comment on economic policy, including interest rate policy.

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Speaker 4: But ultimately the decision is up to the Fed. But

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Speaker 4: it's important for the Fed to hear other viewpoints and

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Speaker 4: to make sure the Fed policies then sync with overall

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Speaker 4: fiscal policy to that end.

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Speaker 5: What do you believe should happen with interest rate policy

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Speaker 5: through the end of the world.

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Speaker 4: When you look at inflation now is somewhere around three percent,

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Speaker 4: interest rates are five percent, So real interest rates are

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Speaker 4: too hot. So the FED I think, waited too long

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Speaker 4: to bring interest rates down. So I think the likely

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Speaker 4: course of actually going forward is the FED will start

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Speaker 4: to cut interest rates.

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Speaker 5: What should they be by the end of twenty twenty five.

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Speaker 4: It's difficult to predict, but my best guesstimate would be

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Speaker 4: around three percent, perhaps two and a half percent.

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Speaker 5: And what would that mean in terms of ripple effects

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Speaker 5: across the economy.

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Speaker 4: Well, it's generally beneficial. The major cost when you get

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Speaker 4: a mortgage is the interest rates. So if mortgage, if

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Speaker 4: the cost of mortgages come down, the cost of buying

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Speaker 4: a home would also come down, and that makes a

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Speaker 4: housing affordability go up, and you know that would spur

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Speaker 4: a new housing development.

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Speaker 5: So another thing that the former president had tried to

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Speaker 5: do in office the last time around was privatized Danny Freddie,

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Speaker 5: is that something you think you would be able to

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Speaker 5: accomplish or as talking about accomplishing and then a potential

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Speaker 5: next term.

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Speaker 4: I think it makes sense. The intention of the Conservative

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Speaker 4: ship was to temper rarely put Fanny and Freddy in

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Speaker 4: conservativeship while they built up their capital. Initially, all the

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Speaker 4: earnings of Fanny and Freddy were swept out by the government,

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Speaker 4: but after Steve Manuchin left office he no longer allowed

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Speaker 4: that policy. In the and the GSS have been rebuilding capitals,

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Speaker 4: So the narrative position that where they're fairly well capitalized,

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Speaker 4: which would make privatization logical.

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