Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Alexis Christophers.
Speaker 3: Here are the stories we're following today.
Speaker 4: Alex As we begin with the new trade war for
Speaker 4: the US with its northern neighbor. The US has slapped
Speaker 4: fifty percent tariffs on around twenty billion dollars of Canadian
Speaker 4: goods after talks collapsed late Friday. Now Canada is preparing
Speaker 4: retaliatory tariffs, and Prime Minister Mark Karney says he's also
Speaker 4: preparing a domestic aid package for businesses affected by the spat.
Speaker 4: Transportation Secretary Sean Duffy says this.
Speaker 5: Won't end well for Canada.
Speaker 6: But I think that they're going to go to war
Speaker 6: with Donald Trump and actually win that war with the US.
Speaker 5: I think it's foolish on their part.
Speaker 6: I think you're going to see Mark Karney come to
Speaker 6: the table very very quickly, because it's going to be
Speaker 6: devastating forest Country.
Speaker 4: Transportation Secretary Sean Duffy appeared on Fox New Sunday, Heard
Speaker 4: Every Sunday on Bloomberg Radio. Bloomberg Global Trade Editor Brendan
Speaker 4: Murray reports Canada sees little chance, though of zooming talks
Speaker 4: with the US before the November midterms.
Speaker 7: It looks like the calculus from Ottawa's perspective to some extent,
Speaker 7: is that the political costs here for Donald Trump to
Speaker 7: engage with Canada in a trade war, to slap tariffs
Speaker 7: on each other, it might be detrimental to the Republican
Speaker 7: Party heading into the midterm elections.
Speaker 4: Here in Bloomberg's Brendan Murray reports, Canada's retaliatory tariffs won't
Speaker 4: take effect until September eighth, but sources tell Bloomberg News
Speaker 4: Canada's domesticate package could remain in place through the rest
Speaker 4: of President Trump's term if need be.
Speaker 3: And Treasury Secretary Scott Bessant is preparing to announce an
Speaker 3: economic d day for Tehran. We get more from Bloomberg
Speaker 3: Middle East correspondent Abira Boulamar in Dubai.
Speaker 8: We have to a wait, of course, the details of
Speaker 8: what Scott's best in trual layout in this press conference,
Speaker 8: but what is widely expected is an announcement of some
Speaker 8: kind of secondary sanctions against countries that continue or choose
Speaker 8: to continue to do deals or trade deals with Ron
Speaker 8: out of course, includes countries in the Gulf, namely the
Speaker 8: United Arab Emirates that of course includes India and the
Speaker 8: big one, China, which why is about ninety percent of
Speaker 8: Iranian oil. China actually came out over the weekend and
Speaker 8: said that it will continue to support the diplomatic route
Speaker 8: between the United States and Iran. Any kind of secondary
Speaker 8: measure against China will bring out a bigger conversation about
Speaker 8: tariff or trade wars between the United States and other countries.
Speaker 3: Bloomberg's Abira bu Omar reports. Secretary Bessent previewed the effort
Speaker 3: and a Financial Times opinion piece, writing that the objective
Speaker 3: is to quote sever every economic lifeline that sustains the
Speaker 3: tyrannical regime until Tehran stands alone. Ahead of the announcement,
Speaker 3: Iran's currency weakened to an all time low against the dollar,
Speaker 3: falling four and a half percent since President Trump announced
Speaker 3: the crushing economic Operation Alexis.
Speaker 4: World leaders have gathered in Kiev to mark thirty five
Speaker 4: years since Ukraine declared independence, and the dignitaries include UK
Speaker 4: Prime Minister Andy Burnham. Let's go to London and get
Speaker 4: the latest from Bloomberg's James Wilcock.
Speaker 2: Good Morning James, Good morning Nathan, and Alexis, many of
Speaker 2: Europe's leaders took the overnight train into Kiev for love
Speaker 2: with fresh pledges of cash for the war effort. It's
Speaker 2: become a familiar trip for the likes of the EU's
Speaker 2: Antonio Costa, but it's the first for the UK's relatively
Speaker 2: new lead. To Andy Burnham, who's chairing a meeting of
Speaker 2: Kiev's allies to mark the thirty fifth anniversary of Ukraine
Speaker 2: declaring independence, it's the independence they've guarded now for more
Speaker 2: than four years of war with Russia. But it's a
Speaker 2: war with no clear end insight in London, James Wilcock,
Speaker 2: Bloomberg Radio.
Speaker 5: Thanks James.
Speaker 3: Meantime, the US military has scrapped an amphibious landing exercise
Speaker 3: with South Korea due to shortages related to deployments to
Speaker 3: the Middle East. That's according to a spokesperson for South
Speaker 3: Korea's Marine Corps. The postponement comes after President Trump recently
Speaker 3: ordered the scaling back of a separate joint military exercise
Speaker 3: with South Korea. The president cited his desire to maintain
Speaker 3: his relationship with North Korean dictator Kim Jong un and
Speaker 3: Soul's purported refuse US to help Washington with its conflict
Speaker 3: against Iran.
Speaker 4: Let's turn to the markets in the economy now. Alexis
Speaker 4: investors are looking ahead to Finchcher Kevin Warsh's comments in
Speaker 4: Jackson Hole, Wyoming this week for clues on the path
Speaker 4: for interest rates. Jack Manley, Global Market Strategistic JP Morgan
Speaker 4: Asset Management does not expect Warsh to say much.
Speaker 9: I think we're going to hear a whole lot of nothing,
Speaker 9: you know, to probably oversimplify things. I mean, Warsh has
Speaker 9: made it extremely clear that he wants to hold the cards,
Speaker 9: closes his chest as close to his chest as he
Speaker 9: possibly can. He is not particularly interested in forward guidance.
Speaker 9: I think it's going to be a lot of cryptic talking.
Speaker 9: I think we'll probably get an update on where those
Speaker 9: task forces are and how that progress or how those
Speaker 9: things are progressing. But don't expect a whole lot of
Speaker 9: clarity on what the Fed's going to be doing over
Speaker 9: the next twelve to eighteen months.
Speaker 5: That is not Warsh's story.
Speaker 4: It's JP Morgan Asset Management's Jack Manley. We invite you
Speaker 4: to join us this Friday for a special edition of
Speaker 4: Bloomberg Surveillance Live from the Jackson Hole Economic Symposium, Tom Kean,
Speaker 4: Lisa Bramoay, and Michael McKee speak with FED experts on
Speaker 4: the path forward starting Friday, nine am, Wall Street Time
Speaker 4: on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app.
Speaker 3: We'll be there looking forward to it. Meantime, treasury yields
Speaker 3: are trading your multi year highs ahead of that Jackson
Speaker 3: Home meeting, and hedge funds are increasing bearished dollar bets
Speaker 3: as they await details on Treasury Secretary Scott Besson's new
Speaker 3: fiscal plan to address high borrowing costs. Federal Reserve Bank
Speaker 3: of Minneapolis President Neil Kashkari is downplaying concerns over rising
Speaker 3: US treasury yields. He spoke on CBS's Face the Nation, there's.
Speaker 6: Every indication that the US treasury market is functioning as
Speaker 6: it should. Kind of trades are taking place, that there's
Speaker 6: liquidity in the market, and so that enables us to
Speaker 6: focus on the federal funds rate as our primary policy
Speaker 6: tool to get inflation back down. And so I think
Speaker 6: we have the freedom to do what we need to
Speaker 6: do to achieve our goals that Congress has assigned US.
Speaker 3: Federal Reserve Bank of Minneapolis President Neil Kashkari also express
Speaker 3: concerns that inflation won't cool anytime soon, but he stops
Speaker 3: short of saying whether he'd call for a rate hike
Speaker 3: in September.
Speaker 4: As for equities, Alexis tech stocks are leading futures mostly
Speaker 4: lower as we begin this new trading week, and as
Speaker 4: investors await Nvidia's earnings. On Wednesday, The Information is reporting
Speaker 4: the chip makers discussing investing in Perplexity in Equity Round,
Speaker 4: valuing that AI startup at more than thirty billion dollars.
Speaker 3: And Nathan In Asia, South Korea's COSTPE index dropped more
Speaker 3: than three percent. It was led lower by Samsung Electronics.
Speaker 3: That stock dropped more than four percent as investors were
Speaker 3: disappointed by a new shareholder return package that favors dividends.
Speaker 3: Sk Heinex also dropped more than four percent.
Speaker 4: The shares of Aali Baba fell almost nine percent Alexis
Speaker 4: after that company raised more than ten billion dollars in
Speaker 4: Hong Kong's biggest secondary share sale on record. Alibaba plans
Speaker 4: to use the proceeds to invest in AI.
Speaker 3: And SoftBank is planning a record six point three billion
Speaker 3: dollar retail bond sale that's the biggest by any issuer
Speaker 3: in Japan. The conglomerate is raising funds for its investment
Speaker 3: commitments to open ai SoftBank has committed more than sixty
Speaker 3: billion dollars to invest in the chat GPT developer.
Speaker 5: I'm looking at cryptocurrencies now.
Speaker 4: Alexis Spot Bitcoin exchange traded funds had their strongest weekly
Speaker 4: inflow in ten months last week, as the original cryptocurrency surged.
Speaker 4: The thirteen US listed funds drew in a net one
Speaker 4: point nine billion dollars. The inflow came as bitcoin gained
Speaker 4: about twenty three percent last week.
Speaker 3: And Nathan California's Attorney general has reportedly canceled a scheduled
Speaker 3: meeting today with Paramount to begin discussing a settlement of
Speaker 3: the state's lawsuit to block the media giant's acquisition of
Speaker 3: Warner Brothers Discovery. The New York Times reports at California's
Speaker 3: attorney general accused Paramount of leaking and misrepresenting earlier settlement talks.
Speaker 3: California and eleven other states aursuing Paramount to block the deal,
Speaker 3: arguing it would create a company with outsize market power
Speaker 3: and cable TV and movie studios. Five HT nine on
Speaker 3: Wall Street time now for a look at some of
Speaker 3: the other stories making news in New York and around
Speaker 3: the world. For that were joined by Bloomberg's Michael bar
Speaker 3: Good Morning, Michael.
Speaker 10: Good Morning, Alexis. Days ahead of the twenty fifth commemoration
Speaker 10: of the nine eleven attacks, there is a continuing effort
Speaker 10: to formally identify all of the nearly three thousand people
Speaker 10: killed at the World Trade Center. For the first time,
Speaker 10: the Medical Examiner's Office and the NYPD have identified a
Speaker 10: nine to eleven victim using genetic genealogy, combining DNA testing
Speaker 10: with family trees. Doctor Jennifer Udian is a forensic anthropologist
Speaker 10: in the Office of the Chief Medical Examiner for New
Speaker 10: York City.
Speaker 4: It's amazing when we get a possible new idea and
Speaker 4: then when we are able to confirm it and know
Speaker 4: that now another family is going to have that information.
Speaker 10: Officials say an adult female is the newly identified victim.
Speaker 10: Officials say a fast growing wildfire in Reno, Nevada, was
Speaker 10: human caused. The hawk fire grew Sunday and is uncontained.
Speaker 10: Authority is confirmed several structures have been destroyed, and that
Speaker 10: six people have been Heard about forty two thousand residents
Speaker 10: have been ordered evacuated, including this woman Gabor I could.
Speaker 2: I can't really see anything because there's no lights snow power.
Speaker 10: Evana. Governor Joe Lombardo declared a state of emergency in
Speaker 10: Washall County. Shelley Fabray, who starred in several TV series
Speaker 10: such as The Donna Reed Show and Coach, has died.
Speaker 5: So far, no word on the cause of death.
Speaker 10: Shelley Fabray was eighty two Tennis fans tight securities plan
Speaker 10: for today's start of the US Open. The New York
Speaker 10: City Police have new authority from DHS to counter unauthorized drones.
Speaker 10: The NYPD will deploy a mobile surveillance center to track
Speaker 10: drones and use sophisticated technology to hack into their guidance systems.
Speaker 10: Global news twenty four hours a day and whenever you
Speaker 10: want it with Bloomberg News Now. Michael Baron, This is Bloomberg.
Speaker 5: Thanks Michael.
Speaker 4: Time now for our Bloomberg Sports update, and for that
Speaker 4: we bring in Dan Schwartzman baseball scoreboard.
Speaker 11: The Yankees beat the Blue Jays eight to three, while
Speaker 11: the Mets give up a walkoff homer to loose to
Speaker 11: the White Sox two to one. Elsewhere, the Red Sox
Speaker 11: lip past the Giants five to four. The Orioles loose
Speaker 11: to the race three to one, while the Nationals are
Speaker 11: beaten by the Marlins six to two. Meanwhile, the Braves
Speaker 11: doubloped the Brewers four to two, Cubs dominate the Mariners
Speaker 11: nineteen to two, while the Phillies done the Cardinals six
Speaker 11: to four, scoring all six runs in the bottom of
Speaker 11: the ninth inning. NFL preseason Sunday Night football saw the
Speaker 11: Texans outlast the Seahawks nineteen to sixteen. In the NBA.
Speaker 11: After waiting to clear waivers, Clay Thompson officially signing a
Speaker 11: two year deal to join the Miami Heat. A golf
Speaker 11: Wyndham Clark wins the BMW Championship in Saint Louis by
Speaker 11: three strokes over Patrick Cantley. That's your Bloomberg Sports update.
Speaker 4: Stay with us more from Bloomberg Daybreak coming up after.
Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 5: Good morning.
Speaker 4: The US as gary up for economic war on multiple fronts,
Speaker 4: now a trade war with Canada and an economic d
Speaker 4: day on Iran. Canada is preparing retaliatory tariffs on the
Speaker 4: US after the collapse of trade talks, but former Deputy
Speaker 4: Canadian Prime Minister Christia Freeland says her country does not
Speaker 4: see trade as a zero sum game.
Speaker 12: I think at heart that is not President Trump's view,
Speaker 12: and that is a real problem, and it's a problem
Speaker 12: not only for Canada, it's a problem for the United States.
Speaker 4: Former Canadian Deputy Prime Minister Christia Freeland was on Bloomberg
Speaker 4: this weekend. Joining us now is Julie Norman, Associate fellow
Speaker 4: at Chathamhouse. Julie, it's great to speak with you this morning.
Speaker 4: Who has the bigger problem now with the US and
Speaker 4: Canada apparently headed for trade war?
Speaker 5: Good morning, Yeah, good morning, Nathan.
Speaker 13: I mean, obviously for Canada, this is a bold move.
Speaker 13: With about seventy percent of Canadian exports going to the US,
Speaker 13: this is going to hit Canada hard, and Carney, I
Speaker 13: think knows that. But this is a bigger thing also
Speaker 13: for the US's style of negotiating and Trump's style of
Speaker 13: negotiating these tariffs not only with Canada, but with other
Speaker 13: countries as well, and seeing a country like Canada that
Speaker 13: does rely so much on this trade relationship. Taking this move,
Speaker 13: I think it's very important. It shows that countries can
Speaker 13: and will stand up to Trump if they are being
Speaker 13: essentially bullied into deals that are not in their interests.
Speaker 4: We saw Canada say that they are going to impose
Speaker 4: retaliatory tariffs on the US in fifteen days September eighth.
Speaker 5: Does that leave enough room for negotiation at this point?
Speaker 13: I think we can assume that there will be some
Speaker 13: talks resuming at some point. I'm not sure exactly when
Speaker 13: those will be, but certainly that window does allow for
Speaker 13: some wiggle room. And I would say, you know, Carnie,
Speaker 13: I think this was a strategic move from them to
Speaker 13: very abruptly walk away from these talks, say these weren't
Speaker 13: working for Canada and essentially put the US unusually on
Speaker 13: the back foot. And how they're going to respond to this,
Speaker 13: And so I think, again, because of the economic relationship
Speaker 13: between these two countries that's very well known, there will
Speaker 13: be talked to the resume at some point. But again,
Speaker 13: the political statement I think is just as important, if
Speaker 13: not more so, than the economic one at this point.
Speaker 4: In terms of that political statement, do you see a
Speaker 4: desire on the US side to get this resolved before
Speaker 4: the November mid terms, given some of the comments you've heard,
Speaker 4: in particular from the likes of Republican Senator Susan Collins
Speaker 4: saying the impact that tariffs could have on her state.
Speaker 13: Sure, I mean, a lot of northern states rely on
Speaker 13: this trade relationship with Canada, and a lot of them
Speaker 13: rely on energy relationships with Canada as well. And energy
Speaker 13: sector we know is already feeling the squeeze from the
Speaker 13: Iran war and whatnot. So even though not all these
Speaker 13: sectors are immediately implicated in this first round, if this
Speaker 13: does escalate further and deepen, these Northern states and the
Speaker 13: US more broadly is going to feel the impacts of
Speaker 13: this at a time when, you know, when that economics
Speaker 13: is already coming from what's happening other parts.
Speaker 5: Of the world.
Speaker 4: Speaking of other parts of the world, let's talk about
Speaker 4: Iran and the economic d day that Treasury Secretary Besson
Speaker 4: says he's going to be announcing this afternoon. Do you
Speaker 4: see further sanctions having an impact to get Iran back
Speaker 4: to the negotiating table, You.
Speaker 13: Know, Nathan, it's hard to say if that will have
Speaker 13: an impact right now, largely because the US and many
Speaker 13: other countries have had long standing strong sanctions against Iran
Speaker 13: for years now. There were sanctions prior to the twenty
Speaker 13: fifteen nuclear deal. Trump famously withdrew from that deal in
Speaker 13: twenty eighteen and reimposed those sanctions. Countries like the UK
Speaker 13: where Iron based, have very strong sanctions against Iran, and
Speaker 13: so that sanctions regen has been in place for a while,
Speaker 13: and that in itself is notable, but also that means
Speaker 13: that Iran has found many ways to work around those
Speaker 13: sanctions for years, whether through shadow fleets or through front
Speaker 13: firms or what have you. I think what the US
Speaker 13: is going to be trying to push forward this time
Speaker 13: is pressuring other states that still do do business with
Speaker 13: Iran to cease that. But even they're the countries that
Speaker 13: do the most business with Iran, China, Turkey, Iraq, the
Speaker 13: US's other interests with those countries that it would be
Speaker 13: unlikely and just very difficult for them to somehow, you know,
Speaker 13: do something drastic with China at this point to pressure
Speaker 13: on that particular front. So my guess is this is
Speaker 13: a way that Trump and the administration want to show
Speaker 13: they are doing something on Iran. They're trying to move
Speaker 13: this into an economic war, but even that, it's going
Speaker 13: to be a long slog.
Speaker 3: This is Bloomberg Daybreak, your morning podcast on the stories
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Speaker 5: And I'm Nathan Hager.
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