WEBVTT - Trump to Name New Fed Governor; Boeing Workers Strike

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, this could be a big week when it comes

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<v Speaker 3>to economic personnel. President Trump says he will announce a

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<v Speaker 3>new Federal Reserve governor and a new jobs data statistician

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<v Speaker 3>in the coming days. On Friday, one of the FED

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<v Speaker 3>seven governors, Adriana Kugler, said she intends to step down early.

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<v Speaker 3>On his way back to the White House for a

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<v Speaker 3>weekend in Bedminster, New Jersey, the President said he would

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<v Speaker 3>be filling Coogler's seat soon.

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<v Speaker 4>No, I have a couple of people in mind. I'll

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<v Speaker 4>be announcing somebody for the filling of the person that left.

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<v Speaker 4>A woman left, as you know, who is a I

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<v Speaker 4>guess a Biden appointment, either Biden or Obama, but I

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<v Speaker 4>think a Biden appointment.

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<v Speaker 1>And she left early.

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<v Speaker 4>And I think she left because she agreed with me

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<v Speaker 4>on interest rates, and yet they were on the other

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<v Speaker 4>side of the ball, right. So I'll be announcing that

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<v Speaker 4>probably over the next couple of days.

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<v Speaker 3>With FED Governor Adriana Kugler's departure, President Trump now has

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<v Speaker 3>the opportunity to appoint a governor who more closely aligns

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<v Speaker 3>with his preference for lower interest rates.

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<v Speaker 5>Well Nathan.

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<v Speaker 2>The changes on the Fed Board come as a major negative.

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<v Speaker 2>Revision to jobs data has upended views on the weakness

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<v Speaker 2>of the labor market. The revised figures make the past

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<v Speaker 2>three months the worst for job creation since the pandemic.

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<v Speaker 2>After the report, the White House fire the Bureau of

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<v Speaker 2>Labor Statistics boss Erica mcintarfer. Whitehouse National Economic Council Director

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<v Speaker 2>Kevin Hassett said the firing was because the revision was

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<v Speaker 2>poorly explained.

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<v Speaker 6>The President wants his own people there so that when

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<v Speaker 6>we see the numbers, they're more transparent and more reliable.

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<v Speaker 6>And if there are big changes in big revisions, we

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<v Speaker 6>expect more big revisions for the job data in September,

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<v Speaker 6>for example. Then we want to know why. We want

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<v Speaker 6>people to explain it to us.

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<v Speaker 2>Kevin Hasset made the comments on NBC's Meet the Press,

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<v Speaker 2>and you can catch the program every sun day right

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<v Speaker 2>here on Bloomberg Radio.

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<v Speaker 3>This morning, Karen, workers at Boeing Saint Louis area defense

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<v Speaker 3>factories are on strike for the first time in almost

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<v Speaker 3>three decades. The walkout by almost thirty two hundred machinists

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<v Speaker 3>come after union members rejected Boeing's modified contract offer. Julie

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<v Speaker 3>Johnson covers the company for Bloomberg.

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<v Speaker 7>Boeing Defense in Space has built fighter jets in Saint

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<v Speaker 7>Louis for a very long time. They also support some

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<v Speaker 7>of the commercial jet programs out of there, but it's

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<v Speaker 7>primarily military aircraft and munitions and missiles are also built there.

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<v Speaker 3>Bloomberg's Julie Johnson says Boeing's offer would have raised wages

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<v Speaker 3>by twenty percent and boosted retirement contributions. The last time

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<v Speaker 3>the union went on strike was nineteen ninety six. That

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<v Speaker 3>stoppage lasted ninety nine days. This morning's shares of Boeing

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<v Speaker 3>are down a half percent, well Nathan.

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<v Speaker 2>In Europe, UBS shares are down about seven tenths of

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<v Speaker 2>Upper sent the Swiss banking group a great to pay

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<v Speaker 2>three hundred million dollars to settle a mortgage related case

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<v Speaker 2>with a US Department of Justice London and get the

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<v Speaker 2>latest with Bloombery's Caroline Hegger.

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<v Speaker 8>It's another item ticked off UBS's list of legal issues,

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<v Speaker 8>partly inherited from Credit Suez, the bank that it rescued

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<v Speaker 8>in twenty twenty three. In a statement, UBS says this

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<v Speaker 8>three hundred billion dollar payment will resolve all the outstanding

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<v Speaker 8>payments from a settlement that was reached in twenty seventeen

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<v Speaker 8>from residential mortgage backed securities dating back to two thousand

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<v Speaker 8>and six seven. EBS says that it expects this to

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<v Speaker 8>have a positive impact on its third quarter results, as

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<v Speaker 8>it will be able to release a contingency liability. The

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<v Speaker 8>agreement closes UBS's biggest US legal headache. In London, callin

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<v Speaker 8>hepgar Bloomberg Radio.

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<v Speaker 3>Okay, Caroline, thank you. Let's get to the latest on trade.

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<v Speaker 3>The US and China have eight days until their tariff

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<v Speaker 3>truce expires. US Trade Representative Jamison Greer is sounding cautiously

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<v Speaker 3>optimistic after last week's talks in Stockholm. He says rare

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<v Speaker 3>earths were a key topic in the discussions for.

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<v Speaker 9>The United States. We're focused on making sure that the

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<v Speaker 9>flow of magnets from China to the United States and

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<v Speaker 9>the adjacent supply chain can flow as freely as it

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<v Speaker 9>did before the control and I'd say we're about halfway there.

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<v Speaker 3>US Trade Representative Jamison Griertel CBS has faced the Nation.

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<v Speaker 3>It will be up to President Trump whether to extend

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<v Speaker 3>the tariff truce with China beyond August twelfth. Face the

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<v Speaker 3>Nation can be heard every Sunday on Bloomberg Radio.

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<v Speaker 2>Nathan now to a political issue in Texas that's caught

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<v Speaker 2>the nation's attention. Democratic lawmakers in the Lone Star state

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<v Speaker 2>have left the state to keep Republicans from redrawing their

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<v Speaker 2>congressional map. Last month, the Justice Department determined four of

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<v Speaker 2>Texas's House districts were racially jerrymandered. President Trump then called

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<v Speaker 2>and Republicans to redraw the map to add five GOP

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<v Speaker 2>seats ahead of next year's midterms. Democratic Illinois Governor JB.

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<v Speaker 2>Pritzker is blessing the Republicans.

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<v Speaker 10>Trump came up with a new scheme rig the system

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<v Speaker 10>by ramming through a corrupt mid decade redistricting plan that

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<v Speaker 10>would steal five congressional seats, silencing millions of voices, especially.

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<v Speaker 11>Black and Latino votes. Let's be clear, this is not

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<v Speaker 11>just rigging the system in Texas. It's about rigging the

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<v Speaker 11>system against the rights of all Americans.

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<v Speaker 2>Illinois Governor JB. Pritzker spoke at a news conference alongside

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<v Speaker 2>many of the Texas Democrats saface fines of five hundred

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<v Speaker 2>dollars a day for leaving the state legislature short of

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<v Speaker 2>a quorum. Texas Governor Greg Abbott says a court could

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<v Speaker 2>decide whether the lawmakers have abandoned their office, allowing him

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<v Speaker 2>to swiftly replace them. State Attorney General Ken Paxton posted

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<v Speaker 2>on x that the lawmakers should be arrested and brought

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<v Speaker 2>back to the capital.

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<v Speaker 3>Let's turn back to the markets now, Karen. Futures are

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<v Speaker 3>higher as we kick off the trading week. On Friday,

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<v Speaker 3>stocks sold off after the week jobs data. The S

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<v Speaker 3>and P five hundred fell one point six percent, while

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<v Speaker 3>the Nasdaq lost two and a quarter percent. Morgan Stanley

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<v Speaker 3>is recommending investors buy stocks on any pullbacks. In a note,

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<v Speaker 3>strategist Mike Wilson said, quote, We're buyers of pullbacks and

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<v Speaker 3>bullish the next twelve months end quote. He added that

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<v Speaker 3>he thinks the Fed will eventually transition to interest rate cuts.

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<v Speaker 2>Well Nathan stocks in Switzerland and falling half a percent

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<v Speaker 2>on concerns President Trump's punitive thirty nine percent export tariff

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<v Speaker 2>on the country will denned corporate profits. The market was

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<v Speaker 2>closed Friday, for all holiday, so prices had not yet

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<v Speaker 2>reflected the tariffs or the President's push for drug makers

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<v Speaker 2>to lower prices.

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<v Speaker 3>And Karen Oil is down more than one percent this morning.

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<v Speaker 3>OPEC Plus has closed a two year chapter in its

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<v Speaker 3>oil strategy, completing a series of oil production increases, but

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<v Speaker 3>delegates emphasized that the next move could be a cut

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<v Speaker 3>or a hike.

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<v Speaker 2>Time now for look at some of the other stories

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<v Speaker 2>making news in New York and around the world. And

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<v Speaker 2>for that we're joined by Bloomberg's John Tucker. John, Good Morning,

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<v Speaker 2>Good morning.

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<v Speaker 12>Karen. Blackstone reopening its New York headquarters this morning after

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<v Speaker 12>keeping the office shuttered the wake of that shooting spree

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<v Speaker 12>that killed four people, including one of its senior executives

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<v Speaker 12>last week. The world's biggest alternal advansset manager also gave

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<v Speaker 12>to have the option to work remotely for the entire week.

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<v Speaker 12>Official to say it was a miracle nobody was hurt.

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<v Speaker 12>A large concrete and steel awning collapsed onto the sidewalk

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<v Speaker 12>in Brooklyn Sunday. The yawning connected to the Hotel Saint George,

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<v Speaker 12>which opened more than one hundred years ago. A three

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<v Speaker 12>point zero magnitude earthquake shook out the area outside New

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<v Speaker 12>York City Saturday night, with the epicenter rooted in Hasburg Heights,

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<v Speaker 12>New Jersey. People across the tri state area reported feeling

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<v Speaker 12>tremor shortly after ten pm.

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<v Speaker 13>We're we're seeing my living room in the whole house shoke.

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<v Speaker 12>Nobody was hurt. Republican hopes of holding on to power

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<v Speaker 12>in the Senate after the twenty twenty six midterms are

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<v Speaker 12>receiving a boost from powerful, well funded super packs. That

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<v Speaker 12>story from Bloomberg's Amy Morris.

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<v Speaker 5>New filings show large sums of cash flowing to aid

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<v Speaker 5>Republican candidates in states including South Carolina, Louisiana, Florida, Michigan,

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<v Speaker 5>and Maine. Superpacks may play a significant role in influencing

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<v Speaker 5>the outcome of the twenty twenty six primaries and general elections,

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<v Speaker 5>when control of the House and the Senate are up

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<v Speaker 5>for grabs. In other FEC filings, Elon Musk donated five

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<v Speaker 5>million dollars apiece to the Congressional Leadership Fund and Senate

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<v Speaker 5>Leadership Fund, which aid House and Senate Republicans respectively. In Washington,

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<v Speaker 5>Amy Morris, Bloomberg Radio.

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<v Speaker 13>I'm a WKRP.

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<v Speaker 12>And Simpson Lannie Anderson, best known for her role on

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<v Speaker 12>the radio station sitcom WKRP in Cincinnati, has died. She

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<v Speaker 12>was seventy nine. Her publicist said she died Sunday in

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<v Speaker 12>Los Angeles after in acute prolonged illness. Global News twenty

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<v Speaker 12>four hours Day and whenever you want it with Bloomberg

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<v Speaker 12>News Now, I'm John Tucker. Vic's Bloomberg Karen.

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<v Speaker 2>All right, John Tucker, thank you time now for the

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<v Speaker 2>Bloomberg Spores update. Here's John stash Hour, John, good.

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<v Speaker 14>Morning, you want to care?

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<v Speaker 2>In?

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<v Speaker 14>The Miami Marlins had previous series wins with the Yankees.

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<v Speaker 14>In fact, they once won a World Series from them,

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<v Speaker 14>but they had never swept. The Yanks had that wild

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<v Speaker 14>thirteen to twelve win Friday night, two nothing shut out Saturday,

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<v Speaker 14>and then they got to Luis Heel early on spoiling

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<v Speaker 14>Heels season debut. Later put the game away.

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<v Speaker 15>That's a shot deep right field, quick back his belcher,

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<v Speaker 15>He looks up and it's gone. Kyle Stowers has done

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<v Speaker 15>it again, this time a three run shot off the left, six.

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<v Speaker 14>One Miami on Marlins TV. Miami won seven to three.

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<v Speaker 14>To spite the difference in payroll, the Yankees is more

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<v Speaker 14>than double the sweep not all that surprising. Since June thirteenth,

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<v Speaker 14>the Marlins record is thirty and fourteen. The Yankees record

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<v Speaker 14>in that time is eighteen and twenty seven. Are now

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<v Speaker 14>in third place. Red Sox a weekend sweep at Fenway.

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<v Speaker 14>The West leading Astro Socks won six to one behind

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<v Speaker 14>Lucas Giolito gave up just three hits. He's now eight

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<v Speaker 14>and two at City Field and ex Red Sock dd

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<v Speaker 14>damage to the Mets.

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<v Speaker 16>He swashes out on the right field. Oh my goodness,

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<v Speaker 16>headed for those second duck, a three run Classic Devers

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<v Speaker 16>home run, and it's four to one Giants and he

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<v Speaker 16>is floating around the bases. That's big boy, big boy

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<v Speaker 16>to end.

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<v Speaker 2>Wow.

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<v Speaker 14>Giants TV calling the Raffie Devers homer. Day after the

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<v Speaker 14>Mets won twelve to six. The Giants won twelve to four,

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<v Speaker 14>but Phillies topp Detroit two to nothing in the Phils

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<v Speaker 14>takeover first place. The first ever MLB game in Tennessee

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<v Speaker 14>and the first of a NASCAR track postponed from Saturday

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<v Speaker 14>due to ragin announced crown of ninety one thousand, so

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<v Speaker 14>the Braves beat the Red Spot to two. The Wyndham

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<v Speaker 14>golf in Greensboro, won by American Cam Young. He finished

0:10:40.679 --> 0:10:43.520
<v Speaker 14>twenty two under par, one by six shots at one point,

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<v Speaker 14>led by nine. It's his first PGA win. John Station

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<v Speaker 14>went Bloomberg Sports.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius Exam

0:10:54.440 --> 0:10:57.280
<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business opp This is Bloomberg.

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<v Speaker 14>Good Morning.

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<v Speaker 3>I'm Nathan Hager. President Donald Trump is getting ready to

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<v Speaker 3>put his stamp on the Federal Reserve and the agency

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<v Speaker 3>that puts out the monthly jobs report. The President says

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<v Speaker 3>he's going to rename replacements for FED Governor Adriana Kugler

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<v Speaker 3>and his fired Bureau of Labor Statistics chief Erica mcintarfer.

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<v Speaker 3>Very soon.

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<v Speaker 4>We'll be announcing a new statistician sometime over the next

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<v Speaker 4>three four days. We had no confidence. I mean, the

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<v Speaker 4>numbers were ridiculous what she announced.

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<v Speaker 3>That was the President speaking to reporters on his way

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<v Speaker 3>back to Washington from Bedminster, New Jersey.

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<v Speaker 12>This morning.

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<v Speaker 3>We're joined by Bloomberg News Senior editor Bill Ferries. And

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<v Speaker 3>Bill after all the pressure that we have seen from

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<v Speaker 3>President Trump on the Federal Reserve, now with the firing

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<v Speaker 3>of the BLS chief, we go into a pretty unprecedented territory.

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<v Speaker 12>Good morning, Yeah, good morning.

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<v Speaker 13>Yeah, it's true. It's a highly unusual move to go

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<v Speaker 13>after the head of essentially the government's chief statistics bureau.

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<v Speaker 13>The BLS has long been considered the gold standard when

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<v Speaker 13>it comes to collecting this data, and there have been

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<v Speaker 13>challenges with getting enough responses to the data, and perhaps

0:12:09.360 --> 0:12:12.200
<v Speaker 13>that has explained some of the revisions that we've seen.

0:12:12.440 --> 0:12:15.439
<v Speaker 13>But revisions have been typical for decades. So it does

0:12:15.480 --> 0:12:19.440
<v Speaker 13>seem the President is reacting more. He's going after the

0:12:19.480 --> 0:12:25.120
<v Speaker 13>messenger here because of frustrations over the message. But as

0:12:25.120 --> 0:12:28.640
<v Speaker 13>you mentioned, there's also a heap of pressure on the

0:12:29.120 --> 0:12:32.280
<v Speaker 13>Federal Reserve and Trump getting a chance to shape it

0:12:32.360 --> 0:12:35.280
<v Speaker 13>a few months earlier than he probably expected.

0:12:34.840 --> 0:12:40.040
<v Speaker 3>To, considering that Adrona. Kugler's term wasn't due to expire

0:12:40.240 --> 0:12:44.440
<v Speaker 3>until January. The President says he thinks that Kugler stepped

0:12:44.480 --> 0:12:47.760
<v Speaker 3>aside because she agrees with him on the need to

0:12:47.800 --> 0:12:49.920
<v Speaker 3>lower interest rates. Is that the sense that we have

0:12:50.040 --> 0:12:52.040
<v Speaker 3>that that's the reason why she's stepping aside.

0:12:52.880 --> 0:12:55.640
<v Speaker 13>Yeah, there's no, there's really no evidence of that in

0:12:56.040 --> 0:13:00.359
<v Speaker 13>terms of her previous comments or her stance at the

0:13:00.360 --> 0:13:03.920
<v Speaker 13>these chief these key meetings that they have on rates.

0:13:04.720 --> 0:13:07.080
<v Speaker 13>I do think though it obviously gives the President a

0:13:07.200 --> 0:13:11.720
<v Speaker 13>chance to get someone in onto the FED who shares

0:13:11.840 --> 0:13:15.120
<v Speaker 13>his view, at least philosophically, that interest rates should be

0:13:15.160 --> 0:13:19.200
<v Speaker 13>coming down and coming down faster, and perhaps even basically

0:13:19.240 --> 0:13:21.600
<v Speaker 13>put in someone in the job who would be his

0:13:21.720 --> 0:13:25.480
<v Speaker 13>replacement for Jerome Powell when Palell's term expires in May.

0:13:25.880 --> 0:13:29.080
<v Speaker 3>So could we get begetting to a situation where we

0:13:29.200 --> 0:13:33.720
<v Speaker 3>could see something like a shadow FED share once this

0:13:33.880 --> 0:13:36.240
<v Speaker 3>announcement is put in place here. I mean, I've got

0:13:36.240 --> 0:13:38.720
<v Speaker 3>to imagine there's going to be a lot of attention

0:13:39.000 --> 0:13:42.880
<v Speaker 3>on the Senate confirmation process for whoever replaces Governor Coogler.

0:13:43.760 --> 0:13:47.560
<v Speaker 13>Yeah, certainly, and that process will take you know, will

0:13:47.559 --> 0:13:49.679
<v Speaker 13>take some time. So it's not going to be an

0:13:49.679 --> 0:13:51.760
<v Speaker 13>immediate thing, but there's going to be you know, as

0:13:51.800 --> 0:13:53.480
<v Speaker 13>soon as that name comes out, there's gonna be a

0:13:53.480 --> 0:13:55.200
<v Speaker 13>lot of scrutiny. There's going to be a lot of

0:13:55.240 --> 0:13:58.000
<v Speaker 13>look at any papers or public comments. I mean, we

0:13:58.040 --> 0:13:59.920
<v Speaker 13>may very well when you look at some of the

0:14:00.160 --> 0:14:03.320
<v Speaker 13>people who are likely on the short list we're talking about,

0:14:03.520 --> 0:14:07.559
<v Speaker 13>you know National Economic Council director Kevin Hassett, former FED

0:14:07.640 --> 0:14:10.960
<v Speaker 13>Governor Kevin Walsh, they would possibly be on that list.

0:14:11.600 --> 0:14:15.239
<v Speaker 13>There's always been speculation that Scott Besst, the Treasury Secretary,

0:14:15.280 --> 0:14:17.280
<v Speaker 13>could be on it. So you know these people, these

0:14:17.280 --> 0:14:19.320
<v Speaker 13>are people who have been very supportive of the President,

0:14:19.360 --> 0:14:21.640
<v Speaker 13>who have backed his idea that rate should come down.

0:14:22.040 --> 0:14:24.560
<v Speaker 13>Powell is still in that job until May. I mean

0:14:24.600 --> 0:14:27.520
<v Speaker 13>he's the one who will be making the arguments in

0:14:27.560 --> 0:14:31.560
<v Speaker 13>those policy committee meetings, but there will certainly be the

0:14:31.600 --> 0:14:35.440
<v Speaker 13>market will be pricing in changes that come after Powell leaves.

0:14:35.880 --> 0:14:37.920
<v Speaker 3>On top of the pressure from the President, on the

0:14:37.920 --> 0:14:41.360
<v Speaker 3>FED and the BLS, Bill, Boeing is facing some rare

0:14:41.400 --> 0:14:44.560
<v Speaker 3>pressure from its defense factory workers this morning.

0:14:45.320 --> 0:14:50.680
<v Speaker 13>That's right, we're seeing a real unusual strike by Boeing workers.

0:14:50.680 --> 0:14:54.360
<v Speaker 13>In this case, it's the first time in almost thirty

0:14:54.440 --> 0:14:59.720
<v Speaker 13>years workers at the Saint Louis factories striking after they

0:14:59.720 --> 0:15:04.680
<v Speaker 13>reach to the company's contract office offer. We're talking about

0:15:04.720 --> 0:15:07.720
<v Speaker 13>thirty two, one hundred machinists who walked off the job.

0:15:08.480 --> 0:15:11.160
<v Speaker 13>The union's last strike was about ninety nine days. I

0:15:11.160 --> 0:15:14.680
<v Speaker 13>mean Boweing listen. Bowing has had several very difficult years.

0:15:15.240 --> 0:15:18.080
<v Speaker 13>It's been caught up in the spat with China. They

0:15:18.080 --> 0:15:19.920
<v Speaker 13>weren't able to sell a lot of their planes to

0:15:20.040 --> 0:15:23.080
<v Speaker 13>China in that time. They had the crash of the

0:15:23.120 --> 0:15:26.000
<v Speaker 13>Max several years ago, so this kind of comes on

0:15:26.080 --> 0:15:28.960
<v Speaker 13>top of a lot of tumult at Boeing. So I

0:15:28.960 --> 0:15:31.120
<v Speaker 13>think they'll be looking to try to resolve this as

0:15:31.160 --> 0:15:34.640
<v Speaker 13>soon as possible and get back to work. But it is,

0:15:34.680 --> 0:15:37.120
<v Speaker 13>you know, it's been almost thirty years, so we're almost

0:15:37.120 --> 0:15:38.600
<v Speaker 13>in unprecedented territory.

0:15:40.360 --> 0:15:43.800
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