1 00:00:00,120 --> 00:00:07,080 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:10,039 --> 00:00:13,240 Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 3 00:00:13,240 --> 00:00:14,960 Speaker 2: are the stories we're following today. 4 00:00:15,360 --> 00:00:17,320 Speaker 3: Karen, this could be a big week when it comes 5 00:00:17,360 --> 00:00:21,080 Speaker 3: to economic personnel. President Trump says he will announce a 6 00:00:21,120 --> 00:00:24,759 Speaker 3: new Federal Reserve governor and a new jobs data statistician 7 00:00:24,920 --> 00:00:27,600 Speaker 3: in the coming days. On Friday, one of the FED 8 00:00:27,680 --> 00:00:31,400 Speaker 3: seven governors, Adriana Kugler, said she intends to step down early. 9 00:00:31,800 --> 00:00:33,280 Speaker 3: On his way back to the White House for a 10 00:00:33,320 --> 00:00:36,200 Speaker 3: weekend in Bedminster, New Jersey, the President said he would 11 00:00:36,200 --> 00:00:37,840 Speaker 3: be filling Coogler's seat soon. 12 00:00:38,200 --> 00:00:40,120 Speaker 4: No, I have a couple of people in mind. I'll 13 00:00:40,120 --> 00:00:45,360 Speaker 4: be announcing somebody for the filling of the person that left. 14 00:00:45,360 --> 00:00:47,839 Speaker 4: A woman left, as you know, who is a I 15 00:00:47,840 --> 00:00:52,280 Speaker 4: guess a Biden appointment, either Biden or Obama, but I 16 00:00:52,280 --> 00:00:53,360 Speaker 4: think a Biden appointment. 17 00:00:54,080 --> 00:00:54,880 Speaker 1: And she left early. 18 00:00:54,960 --> 00:00:56,840 Speaker 4: And I think she left because she agreed with me 19 00:00:56,880 --> 00:00:59,280 Speaker 4: on interest rates, and yet they were on the other 20 00:00:59,360 --> 00:01:02,840 Speaker 4: side of the ball, right. So I'll be announcing that 21 00:01:02,920 --> 00:01:05,400 Speaker 4: probably over the next couple of days. 22 00:01:05,760 --> 00:01:09,280 Speaker 3: With FED Governor Adriana Kugler's departure, President Trump now has 23 00:01:09,360 --> 00:01:12,240 Speaker 3: the opportunity to appoint a governor who more closely aligns 24 00:01:12,240 --> 00:01:14,440 Speaker 3: with his preference for lower interest rates. 25 00:01:14,840 --> 00:01:15,320 Speaker 5: Well Nathan. 26 00:01:15,360 --> 00:01:18,280 Speaker 2: The changes on the Fed Board come as a major negative. 27 00:01:18,280 --> 00:01:21,280 Speaker 2: Revision to jobs data has upended views on the weakness 28 00:01:21,280 --> 00:01:24,000 Speaker 2: of the labor market. The revised figures make the past 29 00:01:24,000 --> 00:01:27,199 Speaker 2: three months the worst for job creation since the pandemic. 30 00:01:27,680 --> 00:01:30,360 Speaker 2: After the report, the White House fire the Bureau of 31 00:01:30,440 --> 00:01:35,720 Speaker 2: Labor Statistics boss Erica mcintarfer. Whitehouse National Economic Council Director 32 00:01:35,800 --> 00:01:38,840 Speaker 2: Kevin Hassett said the firing was because the revision was 33 00:01:38,920 --> 00:01:39,960 Speaker 2: poorly explained. 34 00:01:40,280 --> 00:01:42,600 Speaker 6: The President wants his own people there so that when 35 00:01:42,600 --> 00:01:46,160 Speaker 6: we see the numbers, they're more transparent and more reliable. 36 00:01:46,360 --> 00:01:49,120 Speaker 6: And if there are big changes in big revisions, we 37 00:01:49,200 --> 00:01:52,000 Speaker 6: expect more big revisions for the job data in September, 38 00:01:52,040 --> 00:01:53,960 Speaker 6: for example. Then we want to know why. We want 39 00:01:53,960 --> 00:01:55,200 Speaker 6: people to explain it to us. 40 00:01:55,520 --> 00:01:58,360 Speaker 2: Kevin Hasset made the comments on NBC's Meet the Press, 41 00:01:58,360 --> 00:02:00,520 Speaker 2: and you can catch the program every sun day right 42 00:02:00,560 --> 00:02:01,919 Speaker 2: here on Bloomberg Radio. 43 00:02:02,280 --> 00:02:05,480 Speaker 3: This morning, Karen, workers at Boeing Saint Louis area defense 44 00:02:05,520 --> 00:02:08,320 Speaker 3: factories are on strike for the first time in almost 45 00:02:08,360 --> 00:02:11,799 Speaker 3: three decades. The walkout by almost thirty two hundred machinists 46 00:02:11,840 --> 00:02:16,680 Speaker 3: come after union members rejected Boeing's modified contract offer. Julie 47 00:02:16,760 --> 00:02:18,800 Speaker 3: Johnson covers the company for Bloomberg. 48 00:02:19,160 --> 00:02:23,240 Speaker 7: Boeing Defense in Space has built fighter jets in Saint 49 00:02:23,240 --> 00:02:26,640 Speaker 7: Louis for a very long time. They also support some 50 00:02:26,800 --> 00:02:29,160 Speaker 7: of the commercial jet programs out of there, but it's 51 00:02:29,200 --> 00:02:33,920 Speaker 7: primarily military aircraft and munitions and missiles are also built there. 52 00:02:34,080 --> 00:02:37,200 Speaker 3: Bloomberg's Julie Johnson says Boeing's offer would have raised wages 53 00:02:37,240 --> 00:02:40,880 Speaker 3: by twenty percent and boosted retirement contributions. The last time 54 00:02:40,880 --> 00:02:43,320 Speaker 3: the union went on strike was nineteen ninety six. That 55 00:02:43,440 --> 00:02:47,000 Speaker 3: stoppage lasted ninety nine days. This morning's shares of Boeing 56 00:02:47,000 --> 00:02:49,200 Speaker 3: are down a half percent, well Nathan. 57 00:02:49,240 --> 00:02:52,320 Speaker 2: In Europe, UBS shares are down about seven tenths of 58 00:02:52,440 --> 00:02:54,639 Speaker 2: Upper sent the Swiss banking group a great to pay 59 00:02:54,680 --> 00:02:57,720 Speaker 2: three hundred million dollars to settle a mortgage related case 60 00:02:57,800 --> 00:03:00,679 Speaker 2: with a US Department of Justice London and get the 61 00:03:00,800 --> 00:03:03,200 Speaker 2: latest with Bloombery's Caroline Hegger. 62 00:03:03,520 --> 00:03:07,720 Speaker 8: It's another item ticked off UBS's list of legal issues, 63 00:03:07,760 --> 00:03:11,040 Speaker 8: partly inherited from Credit Suez, the bank that it rescued 64 00:03:11,080 --> 00:03:14,200 Speaker 8: in twenty twenty three. In a statement, UBS says this 65 00:03:14,320 --> 00:03:17,840 Speaker 8: three hundred billion dollar payment will resolve all the outstanding 66 00:03:17,919 --> 00:03:21,279 Speaker 8: payments from a settlement that was reached in twenty seventeen 67 00:03:21,800 --> 00:03:25,919 Speaker 8: from residential mortgage backed securities dating back to two thousand 68 00:03:25,960 --> 00:03:28,960 Speaker 8: and six seven. EBS says that it expects this to 69 00:03:29,000 --> 00:03:32,120 Speaker 8: have a positive impact on its third quarter results, as 70 00:03:32,160 --> 00:03:36,160 Speaker 8: it will be able to release a contingency liability. The 71 00:03:36,200 --> 00:03:40,720 Speaker 8: agreement closes UBS's biggest US legal headache. In London, callin 72 00:03:40,760 --> 00:03:41,920 Speaker 8: hepgar Bloomberg Radio. 73 00:03:42,160 --> 00:03:44,760 Speaker 3: Okay, Caroline, thank you. Let's get to the latest on trade. 74 00:03:44,800 --> 00:03:47,760 Speaker 3: The US and China have eight days until their tariff 75 00:03:47,800 --> 00:03:51,960 Speaker 3: truce expires. US Trade Representative Jamison Greer is sounding cautiously 76 00:03:51,960 --> 00:03:55,480 Speaker 3: optimistic after last week's talks in Stockholm. He says rare 77 00:03:55,520 --> 00:03:57,840 Speaker 3: earths were a key topic in the discussions for. 78 00:03:57,920 --> 00:04:00,160 Speaker 9: The United States. We're focused on making sure that the 79 00:04:00,160 --> 00:04:03,440 Speaker 9: flow of magnets from China to the United States and 80 00:04:03,560 --> 00:04:07,080 Speaker 9: the adjacent supply chain can flow as freely as it 81 00:04:07,120 --> 00:04:09,960 Speaker 9: did before the control and I'd say we're about halfway there. 82 00:04:10,160 --> 00:04:13,240 Speaker 3: US Trade Representative Jamison Griertel CBS has faced the Nation. 83 00:04:13,400 --> 00:04:15,400 Speaker 3: It will be up to President Trump whether to extend 84 00:04:15,400 --> 00:04:18,320 Speaker 3: the tariff truce with China beyond August twelfth. Face the 85 00:04:18,400 --> 00:04:20,799 Speaker 3: Nation can be heard every Sunday on Bloomberg Radio. 86 00:04:21,000 --> 00:04:23,800 Speaker 2: Nathan now to a political issue in Texas that's caught 87 00:04:23,800 --> 00:04:27,239 Speaker 2: the nation's attention. Democratic lawmakers in the Lone Star state 88 00:04:27,320 --> 00:04:30,000 Speaker 2: have left the state to keep Republicans from redrawing their 89 00:04:30,040 --> 00:04:33,640 Speaker 2: congressional map. Last month, the Justice Department determined four of 90 00:04:33,680 --> 00:04:38,120 Speaker 2: Texas's House districts were racially jerrymandered. President Trump then called 91 00:04:38,120 --> 00:04:41,159 Speaker 2: and Republicans to redraw the map to add five GOP 92 00:04:41,400 --> 00:04:45,560 Speaker 2: seats ahead of next year's midterms. Democratic Illinois Governor JB. 93 00:04:45,680 --> 00:04:47,680 Speaker 2: Pritzker is blessing the Republicans. 94 00:04:48,040 --> 00:04:51,080 Speaker 10: Trump came up with a new scheme rig the system 95 00:04:51,360 --> 00:04:55,599 Speaker 10: by ramming through a corrupt mid decade redistricting plan that 96 00:04:55,640 --> 00:05:02,040 Speaker 10: would steal five congressional seats, silencing millions of voices, especially. 97 00:05:01,600 --> 00:05:05,320 Speaker 11: Black and Latino votes. Let's be clear, this is not 98 00:05:05,640 --> 00:05:09,039 Speaker 11: just rigging the system in Texas. It's about rigging the 99 00:05:09,080 --> 00:05:11,680 Speaker 11: system against the rights of all Americans. 100 00:05:11,760 --> 00:05:15,240 Speaker 2: Illinois Governor JB. Pritzker spoke at a news conference alongside 101 00:05:15,279 --> 00:05:18,440 Speaker 2: many of the Texas Democrats saface fines of five hundred 102 00:05:18,480 --> 00:05:21,719 Speaker 2: dollars a day for leaving the state legislature short of 103 00:05:21,760 --> 00:05:24,960 Speaker 2: a quorum. Texas Governor Greg Abbott says a court could 104 00:05:24,960 --> 00:05:27,920 Speaker 2: decide whether the lawmakers have abandoned their office, allowing him 105 00:05:27,960 --> 00:05:31,320 Speaker 2: to swiftly replace them. State Attorney General Ken Paxton posted 106 00:05:31,400 --> 00:05:34,440 Speaker 2: on x that the lawmakers should be arrested and brought 107 00:05:34,480 --> 00:05:35,280 Speaker 2: back to the capital. 108 00:05:35,520 --> 00:05:38,000 Speaker 3: Let's turn back to the markets now, Karen. Futures are 109 00:05:38,120 --> 00:05:41,040 Speaker 3: higher as we kick off the trading week. On Friday, 110 00:05:41,080 --> 00:05:43,479 Speaker 3: stocks sold off after the week jobs data. The S 111 00:05:43,520 --> 00:05:45,760 Speaker 3: and P five hundred fell one point six percent, while 112 00:05:45,800 --> 00:05:49,000 Speaker 3: the Nasdaq lost two and a quarter percent. Morgan Stanley 113 00:05:49,120 --> 00:05:53,359 Speaker 3: is recommending investors buy stocks on any pullbacks. In a note, 114 00:05:53,400 --> 00:05:56,640 Speaker 3: strategist Mike Wilson said, quote, We're buyers of pullbacks and 115 00:05:56,760 --> 00:05:59,560 Speaker 3: bullish the next twelve months end quote. He added that 116 00:05:59,600 --> 00:06:02,960 Speaker 3: he thinks the Fed will eventually transition to interest rate cuts. 117 00:06:03,120 --> 00:06:06,520 Speaker 2: Well Nathan stocks in Switzerland and falling half a percent 118 00:06:06,640 --> 00:06:11,000 Speaker 2: on concerns President Trump's punitive thirty nine percent export tariff 119 00:06:11,040 --> 00:06:14,159 Speaker 2: on the country will denned corporate profits. The market was 120 00:06:14,160 --> 00:06:17,200 Speaker 2: closed Friday, for all holiday, so prices had not yet 121 00:06:17,200 --> 00:06:20,480 Speaker 2: reflected the tariffs or the President's push for drug makers 122 00:06:20,480 --> 00:06:21,839 Speaker 2: to lower prices. 123 00:06:21,680 --> 00:06:25,200 Speaker 3: And Karen Oil is down more than one percent this morning. 124 00:06:25,240 --> 00:06:28,280 Speaker 3: OPEC Plus has closed a two year chapter in its 125 00:06:28,279 --> 00:06:32,240 Speaker 3: oil strategy, completing a series of oil production increases, but 126 00:06:32,320 --> 00:06:35,080 Speaker 3: delegates emphasized that the next move could be a cut 127 00:06:35,279 --> 00:06:35,960 Speaker 3: or a hike. 128 00:06:39,200 --> 00:06:40,839 Speaker 2: Time now for look at some of the other stories 129 00:06:40,839 --> 00:06:42,960 Speaker 2: making news in New York and around the world. And 130 00:06:43,040 --> 00:06:46,119 Speaker 2: for that we're joined by Bloomberg's John Tucker. John, Good Morning, 131 00:06:46,320 --> 00:06:46,760 Speaker 2: Good morning. 132 00:06:46,800 --> 00:06:50,200 Speaker 12: Karen. Blackstone reopening its New York headquarters this morning after 133 00:06:50,240 --> 00:06:52,880 Speaker 12: keeping the office shuttered the wake of that shooting spree 134 00:06:52,880 --> 00:06:56,240 Speaker 12: that killed four people, including one of its senior executives 135 00:06:56,320 --> 00:06:59,839 Speaker 12: last week. The world's biggest alternal advansset manager also gave 136 00:07:00,040 --> 00:07:02,520 Speaker 12: to have the option to work remotely for the entire week. 137 00:07:03,040 --> 00:07:05,200 Speaker 12: Official to say it was a miracle nobody was hurt. 138 00:07:05,360 --> 00:07:08,440 Speaker 12: A large concrete and steel awning collapsed onto the sidewalk 139 00:07:08,440 --> 00:07:12,000 Speaker 12: in Brooklyn Sunday. The yawning connected to the Hotel Saint George, 140 00:07:12,080 --> 00:07:15,160 Speaker 12: which opened more than one hundred years ago. A three 141 00:07:15,200 --> 00:07:18,080 Speaker 12: point zero magnitude earthquake shook out the area outside New 142 00:07:18,160 --> 00:07:21,560 Speaker 12: York City Saturday night, with the epicenter rooted in Hasburg Heights, 143 00:07:21,600 --> 00:07:24,920 Speaker 12: New Jersey. People across the tri state area reported feeling 144 00:07:24,960 --> 00:07:26,920 Speaker 12: tremor shortly after ten pm. 145 00:07:27,320 --> 00:07:30,800 Speaker 13: We're we're seeing my living room in the whole house shoke. 146 00:07:31,120 --> 00:07:34,320 Speaker 12: Nobody was hurt. Republican hopes of holding on to power 147 00:07:34,320 --> 00:07:36,960 Speaker 12: in the Senate after the twenty twenty six midterms are 148 00:07:37,000 --> 00:07:40,800 Speaker 12: receiving a boost from powerful, well funded super packs. That 149 00:07:40,920 --> 00:07:42,640 Speaker 12: story from Bloomberg's Amy Morris. 150 00:07:43,400 --> 00:07:46,760 Speaker 5: New filings show large sums of cash flowing to aid 151 00:07:46,800 --> 00:07:52,120 Speaker 5: Republican candidates in states including South Carolina, Louisiana, Florida, Michigan, 152 00:07:52,200 --> 00:07:56,160 Speaker 5: and Maine. Superpacks may play a significant role in influencing 153 00:07:56,200 --> 00:07:59,880 Speaker 5: the outcome of the twenty twenty six primaries and general elections, 154 00:08:00,200 --> 00:08:02,320 Speaker 5: when control of the House and the Senate are up 155 00:08:02,360 --> 00:08:06,679 Speaker 5: for grabs. In other FEC filings, Elon Musk donated five 156 00:08:06,760 --> 00:08:10,640 Speaker 5: million dollars apiece to the Congressional Leadership Fund and Senate 157 00:08:10,720 --> 00:08:15,640 Speaker 5: Leadership Fund, which aid House and Senate Republicans respectively. In Washington, 158 00:08:15,680 --> 00:08:19,320 Speaker 5: Amy Morris, Bloomberg Radio. 159 00:08:18,280 --> 00:08:21,680 Speaker 13: I'm a WKRP. 160 00:08:20,840 --> 00:08:25,000 Speaker 12: And Simpson Lannie Anderson, best known for her role on 161 00:08:25,040 --> 00:08:29,720 Speaker 12: the radio station sitcom WKRP in Cincinnati, has died. She 162 00:08:29,880 --> 00:08:32,360 Speaker 12: was seventy nine. Her publicist said she died Sunday in 163 00:08:32,400 --> 00:08:36,880 Speaker 12: Los Angeles after in acute prolonged illness. Global News twenty 164 00:08:36,920 --> 00:08:39,160 Speaker 12: four hours Day and whenever you want it with Bloomberg 165 00:08:39,160 --> 00:08:42,080 Speaker 12: News Now, I'm John Tucker. Vic's Bloomberg Karen. 166 00:08:42,320 --> 00:08:49,400 Speaker 2: All right, John Tucker, thank you time now for the 167 00:08:49,400 --> 00:08:52,320 Speaker 2: Bloomberg Spores update. Here's John stash Hour, John, good. 168 00:08:52,240 --> 00:08:53,160 Speaker 14: Morning, you want to care? 169 00:08:53,200 --> 00:08:53,240 Speaker 2: In? 170 00:08:53,280 --> 00:08:56,760 Speaker 14: The Miami Marlins had previous series wins with the Yankees. 171 00:08:56,760 --> 00:08:59,079 Speaker 14: In fact, they once won a World Series from them, 172 00:08:59,080 --> 00:09:01,800 Speaker 14: but they had never swept. The Yanks had that wild 173 00:09:01,920 --> 00:09:05,240 Speaker 14: thirteen to twelve win Friday night, two nothing shut out Saturday, 174 00:09:05,240 --> 00:09:08,040 Speaker 14: and then they got to Luis Heel early on spoiling 175 00:09:08,440 --> 00:09:11,360 Speaker 14: Heels season debut. Later put the game away. 176 00:09:12,280 --> 00:09:15,680 Speaker 15: That's a shot deep right field, quick back his belcher, 177 00:09:15,720 --> 00:09:20,199 Speaker 15: He looks up and it's gone. Kyle Stowers has done 178 00:09:20,200 --> 00:09:26,640 Speaker 15: it again, this time a three run shot off the left, six. 179 00:09:26,480 --> 00:09:29,880 Speaker 14: One Miami on Marlins TV. Miami won seven to three. 180 00:09:29,920 --> 00:09:32,719 Speaker 14: To spite the difference in payroll, the Yankees is more 181 00:09:32,760 --> 00:09:36,760 Speaker 14: than double the sweep not all that surprising. Since June thirteenth, 182 00:09:36,760 --> 00:09:40,079 Speaker 14: the Marlins record is thirty and fourteen. The Yankees record 183 00:09:40,080 --> 00:09:42,360 Speaker 14: in that time is eighteen and twenty seven. Are now 184 00:09:42,440 --> 00:09:45,400 Speaker 14: in third place. Red Sox a weekend sweep at Fenway. 185 00:09:45,480 --> 00:09:48,160 Speaker 14: The West leading Astro Socks won six to one behind 186 00:09:48,200 --> 00:09:50,559 Speaker 14: Lucas Giolito gave up just three hits. He's now eight 187 00:09:50,600 --> 00:09:53,040 Speaker 14: and two at City Field and ex Red Sock dd 188 00:09:53,160 --> 00:09:54,120 Speaker 14: damage to the Mets. 189 00:09:54,960 --> 00:09:58,640 Speaker 16: He swashes out on the right field. Oh my goodness, 190 00:09:59,200 --> 00:10:04,800 Speaker 16: headed for those second duck, a three run Classic Devers 191 00:10:04,880 --> 00:10:09,480 Speaker 16: home run, and it's four to one Giants and he 192 00:10:09,679 --> 00:10:14,480 Speaker 16: is floating around the bases. That's big boy, big boy 193 00:10:14,559 --> 00:10:15,040 Speaker 16: to end. 194 00:10:15,960 --> 00:10:16,240 Speaker 2: Wow. 195 00:10:16,480 --> 00:10:19,120 Speaker 14: Giants TV calling the Raffie Devers homer. Day after the 196 00:10:19,160 --> 00:10:22,160 Speaker 14: Mets won twelve to six. The Giants won twelve to four, 197 00:10:22,600 --> 00:10:25,000 Speaker 14: but Phillies topp Detroit two to nothing in the Phils 198 00:10:25,000 --> 00:10:28,679 Speaker 14: takeover first place. The first ever MLB game in Tennessee 199 00:10:28,840 --> 00:10:32,080 Speaker 14: and the first of a NASCAR track postponed from Saturday 200 00:10:32,160 --> 00:10:34,800 Speaker 14: due to ragin announced crown of ninety one thousand, so 201 00:10:35,040 --> 00:10:37,240 Speaker 14: the Braves beat the Red Spot to two. The Wyndham 202 00:10:37,240 --> 00:10:40,640 Speaker 14: golf in Greensboro, won by American Cam Young. He finished 203 00:10:40,679 --> 00:10:43,520 Speaker 14: twenty two under par, one by six shots at one point, 204 00:10:43,559 --> 00:10:46,920 Speaker 14: led by nine. It's his first PGA win. John Station 205 00:10:47,080 --> 00:10:48,440 Speaker 14: went Bloomberg Sports. 206 00:10:50,160 --> 00:10:54,319 Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius Exam 207 00:10:54,440 --> 00:10:57,280 Speaker 1: and around the world on Bloomberg dot Com and the 208 00:10:57,320 --> 00:10:59,880 Speaker 1: Bloomberg Business opp This is Bloomberg. 209 00:11:00,520 --> 00:11:01,000 Speaker 14: Good Morning. 210 00:11:01,000 --> 00:11:03,560 Speaker 3: I'm Nathan Hager. President Donald Trump is getting ready to 211 00:11:03,559 --> 00:11:06,120 Speaker 3: put his stamp on the Federal Reserve and the agency 212 00:11:06,160 --> 00:11:09,080 Speaker 3: that puts out the monthly jobs report. The President says 213 00:11:09,080 --> 00:11:12,840 Speaker 3: he's going to rename replacements for FED Governor Adriana Kugler 214 00:11:13,160 --> 00:11:16,640 Speaker 3: and his fired Bureau of Labor Statistics chief Erica mcintarfer. 215 00:11:17,120 --> 00:11:17,640 Speaker 3: Very soon. 216 00:11:18,080 --> 00:11:22,240 Speaker 4: We'll be announcing a new statistician sometime over the next 217 00:11:22,240 --> 00:11:25,920 Speaker 4: three four days. We had no confidence. I mean, the 218 00:11:26,000 --> 00:11:27,920 Speaker 4: numbers were ridiculous what she announced. 219 00:11:28,080 --> 00:11:30,360 Speaker 3: That was the President speaking to reporters on his way 220 00:11:30,360 --> 00:11:32,600 Speaker 3: back to Washington from Bedminster, New Jersey. 221 00:11:32,640 --> 00:11:33,120 Speaker 12: This morning. 222 00:11:33,120 --> 00:11:36,559 Speaker 3: We're joined by Bloomberg News Senior editor Bill Ferries. And 223 00:11:36,760 --> 00:11:39,040 Speaker 3: Bill after all the pressure that we have seen from 224 00:11:39,080 --> 00:11:41,960 Speaker 3: President Trump on the Federal Reserve, now with the firing 225 00:11:42,320 --> 00:11:47,240 Speaker 3: of the BLS chief, we go into a pretty unprecedented territory. 226 00:11:47,280 --> 00:11:49,520 Speaker 12: Good morning, Yeah, good morning. 227 00:11:49,600 --> 00:11:52,800 Speaker 13: Yeah, it's true. It's a highly unusual move to go 228 00:11:52,880 --> 00:11:57,840 Speaker 13: after the head of essentially the government's chief statistics bureau. 229 00:11:58,160 --> 00:12:01,560 Speaker 13: The BLS has long been considered the gold standard when 230 00:12:01,559 --> 00:12:04,959 Speaker 13: it comes to collecting this data, and there have been 231 00:12:05,040 --> 00:12:09,320 Speaker 13: challenges with getting enough responses to the data, and perhaps 232 00:12:09,360 --> 00:12:12,200 Speaker 13: that has explained some of the revisions that we've seen. 233 00:12:12,440 --> 00:12:15,439 Speaker 13: But revisions have been typical for decades. So it does 234 00:12:15,480 --> 00:12:19,440 Speaker 13: seem the President is reacting more. He's going after the 235 00:12:19,480 --> 00:12:25,120 Speaker 13: messenger here because of frustrations over the message. But as 236 00:12:25,120 --> 00:12:28,640 Speaker 13: you mentioned, there's also a heap of pressure on the 237 00:12:29,120 --> 00:12:32,280 Speaker 13: Federal Reserve and Trump getting a chance to shape it 238 00:12:32,360 --> 00:12:35,280 Speaker 13: a few months earlier than he probably expected. 239 00:12:34,840 --> 00:12:40,040 Speaker 3: To, considering that Adrona. Kugler's term wasn't due to expire 240 00:12:40,240 --> 00:12:44,440 Speaker 3: until January. The President says he thinks that Kugler stepped 241 00:12:44,480 --> 00:12:47,760 Speaker 3: aside because she agrees with him on the need to 242 00:12:47,800 --> 00:12:49,920 Speaker 3: lower interest rates. Is that the sense that we have 243 00:12:50,040 --> 00:12:52,040 Speaker 3: that that's the reason why she's stepping aside. 244 00:12:52,880 --> 00:12:55,640 Speaker 13: Yeah, there's no, there's really no evidence of that in 245 00:12:56,040 --> 00:13:00,359 Speaker 13: terms of her previous comments or her stance at the 246 00:13:00,360 --> 00:13:03,920 Speaker 13: these chief these key meetings that they have on rates. 247 00:13:04,720 --> 00:13:07,080 Speaker 13: I do think though it obviously gives the President a 248 00:13:07,200 --> 00:13:11,720 Speaker 13: chance to get someone in onto the FED who shares 249 00:13:11,840 --> 00:13:15,120 Speaker 13: his view, at least philosophically, that interest rates should be 250 00:13:15,160 --> 00:13:19,200 Speaker 13: coming down and coming down faster, and perhaps even basically 251 00:13:19,240 --> 00:13:21,600 Speaker 13: put in someone in the job who would be his 252 00:13:21,720 --> 00:13:25,480 Speaker 13: replacement for Jerome Powell when Palell's term expires in May. 253 00:13:25,880 --> 00:13:29,080 Speaker 3: So could we get begetting to a situation where we 254 00:13:29,200 --> 00:13:33,720 Speaker 3: could see something like a shadow FED share once this 255 00:13:33,880 --> 00:13:36,240 Speaker 3: announcement is put in place here. I mean, I've got 256 00:13:36,240 --> 00:13:38,720 Speaker 3: to imagine there's going to be a lot of attention 257 00:13:39,000 --> 00:13:42,880 Speaker 3: on the Senate confirmation process for whoever replaces Governor Coogler. 258 00:13:43,760 --> 00:13:47,560 Speaker 13: Yeah, certainly, and that process will take you know, will 259 00:13:47,559 --> 00:13:49,679 Speaker 13: take some time. So it's not going to be an 260 00:13:49,679 --> 00:13:51,760 Speaker 13: immediate thing, but there's going to be you know, as 261 00:13:51,800 --> 00:13:53,480 Speaker 13: soon as that name comes out, there's gonna be a 262 00:13:53,480 --> 00:13:55,200 Speaker 13: lot of scrutiny. There's going to be a lot of 263 00:13:55,240 --> 00:13:58,000 Speaker 13: look at any papers or public comments. I mean, we 264 00:13:58,040 --> 00:13:59,920 Speaker 13: may very well when you look at some of the 265 00:14:00,160 --> 00:14:03,320 Speaker 13: people who are likely on the short list we're talking about, 266 00:14:03,520 --> 00:14:07,559 Speaker 13: you know National Economic Council director Kevin Hassett, former FED 267 00:14:07,640 --> 00:14:10,960 Speaker 13: Governor Kevin Walsh, they would possibly be on that list. 268 00:14:11,600 --> 00:14:15,239 Speaker 13: There's always been speculation that Scott Besst, the Treasury Secretary, 269 00:14:15,280 --> 00:14:17,280 Speaker 13: could be on it. So you know these people, these 270 00:14:17,280 --> 00:14:19,320 Speaker 13: are people who have been very supportive of the President, 271 00:14:19,360 --> 00:14:21,640 Speaker 13: who have backed his idea that rate should come down. 272 00:14:22,040 --> 00:14:24,560 Speaker 13: Powell is still in that job until May. I mean 273 00:14:24,600 --> 00:14:27,520 Speaker 13: he's the one who will be making the arguments in 274 00:14:27,560 --> 00:14:31,560 Speaker 13: those policy committee meetings, but there will certainly be the 275 00:14:31,600 --> 00:14:35,440 Speaker 13: market will be pricing in changes that come after Powell leaves. 276 00:14:35,880 --> 00:14:37,920 Speaker 3: On top of the pressure from the President, on the 277 00:14:37,920 --> 00:14:41,360 Speaker 3: FED and the BLS, Bill, Boeing is facing some rare 278 00:14:41,400 --> 00:14:44,560 Speaker 3: pressure from its defense factory workers this morning. 279 00:14:45,320 --> 00:14:50,680 Speaker 13: That's right, we're seeing a real unusual strike by Boeing workers. 280 00:14:50,680 --> 00:14:54,360 Speaker 13: In this case, it's the first time in almost thirty 281 00:14:54,440 --> 00:14:59,720 Speaker 13: years workers at the Saint Louis factories striking after they 282 00:14:59,720 --> 00:15:04,680 Speaker 13: reach to the company's contract office offer. We're talking about 283 00:15:04,720 --> 00:15:07,720 Speaker 13: thirty two, one hundred machinists who walked off the job. 284 00:15:08,480 --> 00:15:11,160 Speaker 13: The union's last strike was about ninety nine days. I 285 00:15:11,160 --> 00:15:14,680 Speaker 13: mean Boweing listen. Bowing has had several very difficult years. 286 00:15:15,240 --> 00:15:18,080 Speaker 13: It's been caught up in the spat with China. They 287 00:15:18,080 --> 00:15:19,920 Speaker 13: weren't able to sell a lot of their planes to 288 00:15:20,040 --> 00:15:23,080 Speaker 13: China in that time. They had the crash of the 289 00:15:23,120 --> 00:15:26,000 Speaker 13: Max several years ago, so this kind of comes on 290 00:15:26,080 --> 00:15:28,960 Speaker 13: top of a lot of tumult at Boeing. So I 291 00:15:28,960 --> 00:15:31,120 Speaker 13: think they'll be looking to try to resolve this as 292 00:15:31,160 --> 00:15:34,640 Speaker 13: soon as possible and get back to work. But it is, 293 00:15:34,680 --> 00:15:37,120 Speaker 13: you know, it's been almost thirty years, so we're almost 294 00:15:37,120 --> 00:15:38,600 Speaker 13: in unprecedented territory. 295 00:15:40,360 --> 00:15:43,800 Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories 296 00:15:43,880 --> 00:15:46,880 Speaker 2: making news from Wall Street to Washington and beyond. 297 00:15:47,160 --> 00:15:49,560 Speaker 3: Look for us on your podcast feed by six am 298 00:15:49,600 --> 00:15:53,000 Speaker 3: Eastern each morning, on Apple, Spotify, or anywhere else you listen. 299 00:15:53,200 --> 00:15:56,040 Speaker 2: You can also listen live each morning starting at five 300 00:15:56,080 --> 00:15:58,800 Speaker 2: am Wall Street Time on Bloomberg eleven three to zero 301 00:15:58,800 --> 00:16:00,920 Speaker 2: in New York, Bloomberg Are You ninety nine to one 302 00:16:01,000 --> 00:16:04,920 Speaker 2: in Washington, Bloomberg ninety two nine in Boston, and nationwide 303 00:16:05,000 --> 00:16:07,480 Speaker 2: on serious XM Channel one twenty one. 304 00:16:07,880 --> 00:16:10,600 Speaker 3: Plus listen coast to coast on the Bloomberg Business app 305 00:16:10,640 --> 00:16:14,200 Speaker 3: Now with Apple CarPlay and Android Atto interfaces. 306 00:16:13,680 --> 00:16:16,680 Speaker 2: And don't forget to subscribe to Bloomberg News Now. 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