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Speaker 1: News when you wanted with Bloomberg News Now, I'm Doug Krisner.

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Speaker 1: The equity market closed at record highs today despite the

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Speaker 1: fact that there was a pickup in underlying inflation during

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Speaker 1: the month of July. The core CPI rose by three

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Speaker 1: tenths of one percent month on month, services prices rose

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Speaker 1: more than the goods that may have been impacted by

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Speaker 1: those tariffs. Seema Shaw is the chief Global strategist at

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Speaker 1: Principal Asset Management.

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Speaker 2: Whereas it seems like a foregone conclusion that the FED

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Speaker 2: is going to start cutting rates in September, that decision

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Speaker 2: making process does become a lot more complicated as you

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Speaker 2: get through the rest of the year and certainly even

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Speaker 2: into twenty twenty six. But from a market perspective, what

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Speaker 2: I think they're seeing is that, look, there's no real

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Speaker 2: concerns about the state of the economy. Yes there's a slowdown,

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Speaker 2: but in terms of recession risk, it's fairly low. And

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Speaker 2: yet you're going to get preemptive FED cuts and that

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Speaker 2: really creates constructive backdrop risk.

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Speaker 1: Asses that Seema Shaw of Principal Asset Management, speaking earlier

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Speaker 1: to Bloomberg. Meantime, US Treasury Secretary Scott Besson suggested the

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Speaker 1: FED ought to be opened to a fifty basis point

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Speaker 1: great cut. In September, speaking to Fox Business, Besant also

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Speaker 1: weighed in on the search for FED Chair J Powell's replacement.

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Speaker 3: I talked to the candidate. I'm looking at three things

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Speaker 3: monetary policy, regulatory policy, and the ability to run and

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Speaker 3: revamp the organization because it's really gotten bloated, and I

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Speaker 3: think that this bloat puts its monetary independence at risk.

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Speaker 1: That is Treasury Secretary Scott Besson's. He is leading the

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Speaker 1: Trump administration's vetting for a new FED chair, sources Tel Bloomberg.

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Speaker 1: Candidates now include FED Vice chairs Michelle Bowman and Philip Jefferson,

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Speaker 1: as well as the head of the Dallas FED, Lori Logan. Incidentally,

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Speaker 1: the Treasury Secretary will join Bloomberg Surveillance tomorrow morning, Wednesday,

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Speaker 1: seven thirty am Wall Street Time. Meantime, President Trump said

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Speaker 1: he's weighing a lawsuit against Chair J. Powell over the

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Speaker 1: renovation of the Fed's headquarters. He made the remarks today

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Speaker 1: in a post on Truth Social We heard early from

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Speaker 1: Peter Navarro, White House Trade Advisor, speaking to Bloomberg's Balance

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Speaker 1: of Power look get your attention.

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Speaker 4: It's like, what is he doing there? He's spending the

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Speaker 4: taxpayer's money on a just why not watching costs?

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Speaker 5: It's beautile.

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Speaker 4: He contrasts with him the way Donald Trump does things

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Speaker 4: in the White House. He's undergoing a major renovation. He

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Speaker 4: watches every penny.

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Speaker 1: That was Peter Navarro, White House Trade advisor, speaking earlier

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Speaker 1: to Bloomberg's Balance of Power. We go to Texas, next

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Speaker 1: to where state House Democrats will reportedly return to the

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Speaker 1: state after they left last week to stop a vote

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Speaker 1: on new congressional maps. ABC News is reporting the lawmakers

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Speaker 1: feel as though they've accomplished their goal of killing the

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Speaker 1: first special session, and they are claiming to have raised

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Speaker 1: awareness and thereby sparking a national backlash about mid decade redistricting. However,

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Speaker 1: the date for their return has yet to be confirmed,

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Speaker 1: nor do we know if they will return as a group.

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Speaker 1: Plans could change if Republicans go back on their word

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Speaker 1: and begin a second special session on Friday. Staying in Texas,

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Speaker 1: officials say, thirty five cars of a Union Pacific freight

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Speaker 1: train derailed near the town of Gordon. A Union Pacific

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Speaker 1: spokesperson said no injuries were reported. And no evacuation orders

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Speaker 1: have been made now. The Emergency Services District said the

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Speaker 1: derailment is being treated as a hazardous material situation, although

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Speaker 1: it is not immediately known what the derailed cars were carrying.

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Speaker 1: We moved to earnings news next after the bell. Corwave

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Speaker 1: posted steeper losses as the company continued to build out

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Speaker 1: to meet demand from AI developers. Revenue tripled to one

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Speaker 1: point two billion dollars. However, Corewave's capital investments were two

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Speaker 1: and a half billion. Shares fell ten percent in late

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Speaker 1: US trading. An Aragrana is senior tech analyst for Bloomberg Intelligence.

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Speaker 6: I'm surprised about the negative reaction because the results are

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Speaker 6: pretty good, the backlog is good, and capex was not

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Speaker 6: as high as as they had communicated in their guidance.

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Speaker 1: Honor Ragrana there from Bloomberg Intelligence. As mentioned earlier, there

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Speaker 1: were record highs today in the stock market, as the

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Speaker 1: NASDAK composite, the NASDAQ one hundred, and the S and

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Speaker 1: P five hundred each closed at all time highs. More

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Speaker 1: from Bloomberg's Charlie Pellett, the.

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Speaker 5: S and P five hundred index had its first close

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Speaker 5: ever above sixty four hundred bolstered by speculation that the

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Speaker 5: Federal Reserve will have room to cut rates in September.

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Speaker 5: Dana Diori is co chief investment Officer at Investment.

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Speaker 7: It seems to be the case that what was really

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Speaker 7: driving the market crazy in April Liberation Day, quote unquote,

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Speaker 7: you know, was sort of just a negotiating stance, and

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Speaker 7: so the market has calmed down on that front. So

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Speaker 7: you've got that, you've got the AI trade, you've got

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Speaker 7: earnings keeping up.

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Speaker 5: So far this year, the S and P five hundred

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Speaker 5: index is up nine point six percent. In New York.

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Speaker 5: Charlie Pellett Bloomberg.

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Speaker 1: Radio, and that is news when you want it with

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Speaker 1: Bloomberg News. Now, I'm Doug Prisner, and this is Bloomberg