Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with trade this morning. In the latest
Speaker 3: announcement from President Donald Trump, as heard live on Bloomberg Radio,
Speaker 3: the President says tariffs on semiconductor imports are coming soon.
Speaker 4: Chips and semiconductors will be putting tariffs on companies that
Speaker 4: aren't coming in. We'll be putting a tariff very shortly,
Speaker 4: probably our hearing. We'll be putting a fairly substantial tariff
Speaker 4: on not that high, but fairly substantial tariff.
Speaker 3: President Trump says the levies could spare companies like Apple,
Speaker 3: which have pledged to boost investments in the United States.
Speaker 3: The President previously suggested the tariff rate on ships could
Speaker 3: be well above one hundred percent, reaching potentially two hundred
Speaker 3: or three hundred percent.
Speaker 2: Well, Nathan, President Trump was speaking at a White House
Speaker 2: dinner attended by some of the world's biggest tech leaders.
Speaker 2: The guest list ranged from Apple's Tim Cook, open Ai,
Speaker 2: Sam Altman, and Google Sundar Peshai, and sitting beside the
Speaker 2: President was metis Markus Zuckerberg. He was pressed by the
Speaker 2: President on the company's US investments.
Speaker 4: How much are you spending would you say over the
Speaker 4: next few years?
Speaker 5: Oh, gosh, I mean I think it's probably going to
Speaker 5: be something like, I don't know, at least six hundred
Speaker 5: billion dollars through twenty eight in the US.
Speaker 2: Yeah, to met As Mark Zuckerberg speaking at the White
Speaker 2: House earlier Thursday, many of the same executives joined First
Speaker 2: Lady Malania Trump for a discussion on AI.
Speaker 3: And we have a major new development potentially in the
Speaker 3: AI space this morning, Karen, We've learned that open ai
Speaker 3: is partnering with Broadcom to design and produce artificial intelligence
Speaker 3: chips and what would be a direct challenge to Nvidia.
Speaker 3: Bloomberg News is reporting the first accelerator chips that begins
Speaker 3: show next year. Broadcom CEO told investors on his latest
Speaker 3: earnings call that the company's AI outlook will improve significantly
Speaker 3: next year, with expected revenue from semiconductors to reach more
Speaker 3: than six billion dollars in the fourth quarter.
Speaker 2: Nathan, let's turn to the economy now. In today's critical
Speaker 2: jobs report, which could cement a rate cut at this
Speaker 2: month's FED meeting, markets are currently pricing in a quarter
Speaker 2: point cut in September. Speaking at a fireside chat yesterday,
Speaker 2: Chicago Fed President Austin Goulesby said the number will be important,
Speaker 2: but stressed he's looking at a broad range of data points.
Speaker 6: I'm one of the data dogs, so you're never going
Speaker 6: to hear me say throw away a number and pay
Speaker 6: no attention to it.
Speaker 7: But I'm just going to index on that.
Speaker 6: Number tomorrow morning, a little bit less than we normally would.
Speaker 2: Chicago Fed President Austin Goulesby says if the job market
Speaker 2: shows further deterioration, it could be assigned to loosen monetary policy.
Speaker 2: The August Jobs report drops at eight thirty Wall Street Time.
Speaker 2: Please stick with Bloomberg for live coverage to the data
Speaker 2: on blue Burg Surveillance with Tom Keen and Paul Sweeney
Speaker 2: on Bloomberg Radio and the Bloomberg Podcast page on YouTube.
Speaker 3: Well, Karen Golsby's not the only Fed speaker talking about
Speaker 3: raid cuts. New York Fed President John Williams says the
Speaker 3: Central Bank is facing a delicate balancing act when it
Speaker 3: comes to policy.
Speaker 8: We need to keep the labor market in balance to
Speaker 8: ensure that the effects of terrorists do not spill over
Speaker 8: into a longer lasting broad increase interflation. On the other hand,
Speaker 8: maintaining a stance of too restricted policy for too long
Speaker 8: could increase risks to a maximum employment mandate.
Speaker 3: New York Fed President John Williams says the impact of
Speaker 3: tariff's on inflation has been less than originally feared. He
Speaker 3: says the labor market is undergoing gradual cooling consistent with
Speaker 3: a slowdown in the economy.
Speaker 2: And we turned out to New York City's mayoral race.
Speaker 2: The New York Times is reporting Nathan that Mayor Eric
Speaker 2: Adams told Confidence that he's weighing job opportunities that would
Speaker 2: prompt him to abandon his re election bid. Reports indicate
Speaker 2: Adams had been in talks with advisor to President Trump
Speaker 2: about a potential job if he quits the race, which
Speaker 2: he's denied. President Trump wade in on the race at
Speaker 2: the White House last night.
Speaker 4: I would like to see two people drop out and
Speaker 4: have it be one on one, and I think that's
Speaker 4: a race they could be one.
Speaker 2: The President emphasized he'd prefer not to have a communist
Speaker 2: mayor of New York City, referring to current Democratic front
Speaker 2: runners are run Mom Donnie for full transparency. Michael Bloomberg,
Speaker 2: founder a majority owner of Bloomberg LP, the parent company
Speaker 2: oft Bloomberg Radio, has endorsed Andrew Cuomo in the mayor's race.
Speaker 3: What's turned out care into the latest and President Trump's
Speaker 3: efforts to oust FED Governor Lisa Cook. The Justice Department
Speaker 3: has opened a criminal investigation into whether Cook committed mortgage fraud,
Speaker 3: sources tell Bloomberg. Federal prosecutors have issued subpoenas relating to
Speaker 3: allegations that Cook misrepresented information on mortgage applications. Last month,
Speaker 3: the President said he was removing Cook after Federal Housing
Speaker 3: Finance Agency Director Bill Poulti accused her of mortgage fraud.
Speaker 3: Cook is suing her lawyer denies the charge and says
Speaker 3: the President lacks valid grounds to remove her, and in
Speaker 3: a filing late last night, Cook said a court ruling
Speaker 3: in favor of Harvard University backs her argument that President
Speaker 3: Trump's attempt to fire her is a pretext.
Speaker 2: At the same time, Nathan, President Trump is asking the
Speaker 2: Supreme Corps to let him fire FTC Commissioner Rebecca Kelly Slaughter,
Speaker 2: testing a nineteen thirty five Supreme Court ruling that said
Speaker 2: Congress could insulate high ranking officials from being fired. The
Speaker 2: filing follows a federal appeals court decision reinstating Slaughter, who
Speaker 2: is challenging Trump's attempt to alster. Trump sought to remove
Speaker 2: Slaughter from her position in March. She sued, arguing that
Speaker 2: her olster flouted the FTC Act, which says a president
Speaker 2: can remove commissioners only for cause.
Speaker 3: On Capitol Hillcare and there are plenty of fireworks at
Speaker 3: multiple hearings, one involving President Trump's FED pick Stephen Myron,
Speaker 3: the President selected as chair of the White House Council
Speaker 3: of Economic Advisors to fill Adriana Coogler's seat on the
Speaker 3: FED Board. Democrats raised concern that because Myron says he
Speaker 3: wants to keep his White House job while serving at
Speaker 3: the FED, that could compromise Central Bank independence. Myron addressed
Speaker 3: those concerns during Bloomberg's live coverage of the hearing.
Speaker 9: The President nominated me because I have policy views that
Speaker 9: I suppose that he liked. If I'm confirmed to this role,
Speaker 9: I will act independently as the Federal Reserve always does,
Speaker 9: based on my own personal analysis of economic data, my
Speaker 9: own personal analysis of the effects of economic policies upon
Speaker 9: the economy and act based on my judgment of my
Speaker 9: judgment of the best economic policy possible.
Speaker 3: Stephen Myron says he spent much of his career studying
Speaker 3: monetary policy. Last year, he wrote a paper detailing numerous
Speaker 3: proposals to overhaul the FED.
Speaker 2: Meanwhile, Nathan Health and Human Services Secretary Robert F. Kennedy
Speaker 2: Junior was criticized by Democrats and some Republicans. At his hearing.
Speaker 2: Senators challenged Kennedy's changes to federal health agencies, including overhauling
Speaker 2: a key vaccine advisory and slashing you a support for
Speaker 2: global immunization efforts. He had a heated exchange about COVID
Speaker 2: with Democratic Senator Mark Warner of Virginia.
Speaker 7: There was so much.
Speaker 10: Data chaos coming out of the CDC, and it would
Speaker 10: all take.
Speaker 4: Out incentives and these are modeling.
Speaker 10: You know, I know the answer of how many America
Speaker 10: side from COVID. This is the Secretary of Health and
Speaker 10: Human Services.
Speaker 2: Senator Mark Warner addressed the hearing with Bloomberg afterwards.
Speaker 10: This guy promised that he was going to follow science,
Speaker 10: not you know, across the board fire experts he's on.
Speaker 10: It feels like a persh against any of the respective scientists.
Speaker 2: Virginia Senator Mark Warner was speaking on Bloomberg's Spellance of Power,
Speaker 2: and it's time no off for a look at some
Speaker 2: of the other stories making news in New York and
Speaker 2: around the world. And for that we're joined by Bloomberg's
Speaker 2: Michael Barr Michael, Good.
Speaker 11: Morning, Good morning, Karen. Massachusetts Governor Mara Heally says the
Speaker 11: Bay State will vaccines available to its residents no matter
Speaker 11: what happens at the federal level. That means insurance carriers
Speaker 11: will have to cover vaccinations required by the States Department
Speaker 11: of Public Health, no matter what is recommended at the
Speaker 11: federal level. The move comes after AJHS Secretary Robert F.
Speaker 11: Kennedy junior fire the CDC director, restructured the department and
Speaker 11: attacked doctor groups that recommended vaccinations. Heally says they won't
Speaker 11: let the Trump administration get between doctors and patients.
Speaker 7: We're forced to do this as states because of the
Speaker 7: abdication of responsibility by the federal government, and so we've
Speaker 7: worked quickly here in Massachusetts.
Speaker 3: We've worked with other states.
Speaker 7: We're going to invite other states to join our coalition
Speaker 7: so that there is more of a consensus.
Speaker 11: Governor Healy says no one in Massachusetts is going to
Speaker 11: be denied because of cost. Josh Kraft is contributing an
Speaker 11: additional three point five million dollars to his campaign to
Speaker 11: unsea Boston Mayor Michelle Wo, The son of billionaire New
Speaker 11: England Patriots owner Robert Craft, has spent a total of
Speaker 11: five point five million dollars of his own fortune on
Speaker 11: the campaign, which has also been funded by donations from
Speaker 11: his father's friends and associates. Despite out spending his opponent,
Speaker 11: Craft trails Woo by thirty points in a recent poll.
Speaker 11: The thirty day deployment of the National Guard in Washington,
Speaker 11: d C has been extended until at least the end
Speaker 11: of November. Brigadier General Leland Blanchard made the announcement via
Speaker 11: social media.
Speaker 6: I've made the decision to extend the encampment as we
Speaker 6: continue to work to ensure that everyone that walks through
Speaker 6: these city streets is safe.
Speaker 11: The order applies only to the DC National Guard, not
Speaker 11: those sent from other states. Rhode Island and Connecticut sue
Speaker 11: the Trump administration over its order blocking further construction of
Speaker 11: a nearly completed offshore wind farm meant to provide power
Speaker 11: to the two New England states. The States asked a
Speaker 11: federal judge to vacate to stop work order the administration
Speaker 11: issued against the revolution Win Project located off the coast
Speaker 11: of Rhode Island. Global News twenty four hours a day
Speaker 11: and whenever you want it with the Bloomberg News Now
Speaker 11: Michael Barr and this is Bloomberg Karen.
Speaker 2: Thanks Michael. Time now for our Bloomberg Sports up, Hey,
Speaker 2: and for that we bring in John stash.
Speaker 6: Hour, Thanks Daring. The first game of the NFL season
Speaker 6: included a lightning delay of more than an hour in Philadelphia.
Speaker 6: The Eagles and Cowboys had a lot of scoring before
Speaker 6: the delay that came in the third quarter. None afterwards,
Speaker 6: Philadelphia beat Dallas twenty four to twenty. Arena Sabalenka and
Speaker 6: Amanda in Smoa both lost the first sent and won
Speaker 6: the next two semifinal winners at the US Open. The
Speaker 6: men's semifinals are today. Kate link Clark. Due to her injury,
Speaker 6: we'll miss the rest of the WNBA season. That's a
Speaker 6: Bloomberg Sports update.
Speaker 2: Stay with us. More from Bloomberg Day Break coming up
Speaker 2: after this.
Speaker 1: 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 6: Good morning.
Speaker 3: I'm Nathan Hager. Some of the biggest names in big
Speaker 3: tech were over at the White House last night touting
Speaker 3: their investment pledges and boosting their ties with President Donald Trump.
Speaker 3: The President says he's not worried about competitors like China
Speaker 3: catching up in the AI race.
Speaker 4: We have the smartest people, we have the greatest technology,
Speaker 4: and they can copy, but they can't create like we
Speaker 4: can create.
Speaker 3: And that was President Trump at a White House dinner
Speaker 3: with among others, met A CEO, Mark Zuckerberg, Apples, Tim Cook,
Speaker 3: and Satya Nadella of Microsoft and comments. Heard live on
Speaker 3: Bloomberg Radio this morning. We're joined by Bloomberg's Valerie Titel
Speaker 3: and Vali guess. One of the biggest headlines to come
Speaker 3: out of the dinner last night as President Trump once
Speaker 3: again saying substantial tariffs on chip imports are coming very soon.
Speaker 3: But is this much different from what we've heard from
Speaker 3: the President in the past.
Speaker 6: Good morning.
Speaker 7: Honestly, it's not, because he's still touted that some companies
Speaker 7: like Apple will be carved out of these tariffs that
Speaker 7: he was foreshadowing could be coming shortly, him noting specifically
Speaker 7: that Tim Cook will be in pretty good shape. Of course,
Speaker 7: that is Apple's CEO. And with Apple achieving some of
Speaker 7: those carveouts, it's also understood that some other companies with
Speaker 7: their chip exports and imports, will be getting a similar
Speaker 7: carve out as well, as long as they tout these
Speaker 7: investments in the US. And as you mentioned, many of
Speaker 7: these tech leaders in the room in the White House
Speaker 7: doing so yesterday talking about their spending valves, their investment
Speaker 7: into the US to build these data centers, to get
Speaker 7: the right energy infrastructure in place to complement the boom
Speaker 7: and AI that Trump wants to build.
Speaker 3: Did we get a sense last night, val on what
Speaker 3: the President's priorities are when it comes to boosting Silicon Valley.
Speaker 7: Well, look, I think energy infrastructure is a big part
Speaker 7: of that. We know that many regions globally do not
Speaker 7: have the kind of energy infrastructure that is needed to
Speaker 7: drive the data centers, so many of them pledging investments
Speaker 7: into data centers as well. That's something that's laying the
Speaker 7: groundwork almost for this AI boom. But I also want
Speaker 7: to bring you attention to what's going on in the market.
Speaker 7: This morning. We have shares of Broadcom up nearly nine
Speaker 7: percent in pre market trade. They came out with a
Speaker 7: beat and earnings, and this is important for the chip
Speaker 7: sector because they also foreshadowed a pact a new customer,
Speaker 7: Open Ai, which they'll be getting ten billion dollars of
Speaker 7: revenue from. This is very interesting. They are partnering with
Speaker 7: the chat GPT owner OpenAI to design and produce an
Speaker 7: AI chip. This will be a direct challenge to Navidia's
Speaker 7: dominance in the AI chip market, but very interesting to
Speaker 7: see this announced and the shares of Broadcom lifting not
Speaker 7: only the tech sector but the broader SMP index this morning.
Speaker 3: So you our last thirty seconds, then, val, I mean,
Speaker 3: how much of an issue could that be? Foreign Vidia?
Speaker 3: I mean, they've really dominated this space for so long.
Speaker 7: There's a lot of questions about that whether adding a
Speaker 7: new competitor into the market it will suffer margins will
Speaker 7: suffer off the back of that. But note Navidia has
Speaker 7: some ninety five percent market share, AMD is the leader
Speaker 7: behind that, and then Broadcom not far behind. But you
Speaker 7: could definitely argue there needs to be more competitors in
Speaker 7: this space to drive the cost down of these AI
Speaker 7: chips could help Trump's AI boom, which he so desperately
Speaker 7: wants to take place in the US.
Speaker 2: This is Bloomberg day Break, your morning podcast on the
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Speaker 3: here on Bloomberg Daybreak