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, this could be a big week when it comes
Speaker 3: to economic personnel. President Trump says he will announce a
Speaker 3: new Federal Reserve governor and a new jobs data statistician
Speaker 3: in the coming days. On Friday, one of the FED
Speaker 3: seven governors, Adriana Kugler, said she intends to step down early.
Speaker 3: On his way back to the White House for a
Speaker 3: weekend in Bedminster, New Jersey, the President said he would
Speaker 3: be filling Coogler's seat soon.
Speaker 4: No, I have a couple of people in mind. I'll
Speaker 4: be announcing somebody for the filling of the person that left.
Speaker 4: A woman left, as you know, who is a I
Speaker 4: guess a Biden appointment, either Biden or Obama, but I
Speaker 4: think a Biden appointment.
Speaker 1: And she left early.
Speaker 4: And I think she left because she agreed with me
Speaker 4: on interest rates, and yet they were on the other
Speaker 4: side of the ball, right. So I'll be announcing that
Speaker 4: probably over the next couple of days.
Speaker 3: With FED Governor Adriana Kugler's departure, President Trump now has
Speaker 3: the opportunity to appoint a governor who more closely aligns
Speaker 3: with his preference for lower interest rates.
Speaker 5: Well Nathan.
Speaker 2: The changes on the Fed Board come as a major negative.
Speaker 2: Revision to jobs data has upended views on the weakness
Speaker 2: of the labor market. The revised figures make the past
Speaker 2: three months the worst for job creation since the pandemic.
Speaker 2: After the report, the White House fire the Bureau of
Speaker 2: Labor Statistics boss Erica mcintarfer. Whitehouse National Economic Council Director
Speaker 2: Kevin Hassett said the firing was because the revision was
Speaker 2: poorly explained.
Speaker 6: The President wants his own people there so that when
Speaker 6: we see the numbers, they're more transparent and more reliable.
Speaker 6: And if there are big changes in big revisions, we
Speaker 6: expect more big revisions for the job data in September,
Speaker 6: for example. Then we want to know why. We want
Speaker 6: people to explain it to us.
Speaker 2: Kevin Hasset made the comments on NBC's Meet the Press,
Speaker 2: and you can catch the program every sun day right
Speaker 2: here on Bloomberg Radio.
Speaker 3: This morning, Karen, workers at Boeing Saint Louis area defense
Speaker 3: factories are on strike for the first time in almost
Speaker 3: three decades. The walkout by almost thirty two hundred machinists
Speaker 3: come after union members rejected Boeing's modified contract offer. Julie
Speaker 3: Johnson covers the company for Bloomberg.
Speaker 7: Boeing Defense in Space has built fighter jets in Saint
Speaker 7: Louis for a very long time. They also support some
Speaker 7: of the commercial jet programs out of there, but it's
Speaker 7: primarily military aircraft and munitions and missiles are also built there.
Speaker 3: Bloomberg's Julie Johnson says Boeing's offer would have raised wages
Speaker 3: by twenty percent and boosted retirement contributions. The last time
Speaker 3: the union went on strike was nineteen ninety six. That
Speaker 3: stoppage lasted ninety nine days. This morning's shares of Boeing
Speaker 3: are down a half percent, well Nathan.
Speaker 2: In Europe, UBS shares are down about seven tenths of
Speaker 2: Upper sent the Swiss banking group a great to pay
Speaker 2: three hundred million dollars to settle a mortgage related case
Speaker 2: with a US Department of Justice London and get the
Speaker 2: latest with Bloombery's Caroline Hegger.
Speaker 8: It's another item ticked off UBS's list of legal issues,
Speaker 8: partly inherited from Credit Suez, the bank that it rescued
Speaker 8: in twenty twenty three. In a statement, UBS says this
Speaker 8: three hundred billion dollar payment will resolve all the outstanding
Speaker 8: payments from a settlement that was reached in twenty seventeen
Speaker 8: from residential mortgage backed securities dating back to two thousand
Speaker 8: and six seven. EBS says that it expects this to
Speaker 8: have a positive impact on its third quarter results, as
Speaker 8: it will be able to release a contingency liability. The
Speaker 8: agreement closes UBS's biggest US legal headache. In London, callin
Speaker 8: hepgar Bloomberg Radio.
Speaker 3: Okay, Caroline, thank you. Let's get to the latest on trade.
Speaker 3: The US and China have eight days until their tariff
Speaker 3: truce expires. US Trade Representative Jamison Greer is sounding cautiously
Speaker 3: optimistic after last week's talks in Stockholm. He says rare
Speaker 3: earths were a key topic in the discussions for.
Speaker 9: The United States. We're focused on making sure that the
Speaker 9: flow of magnets from China to the United States and
Speaker 9: the adjacent supply chain can flow as freely as it
Speaker 9: did before the control and I'd say we're about halfway there.
Speaker 3: US Trade Representative Jamison Griertel CBS has faced the Nation.
Speaker 3: It will be up to President Trump whether to extend
Speaker 3: the tariff truce with China beyond August twelfth. Face the
Speaker 3: Nation can be heard every Sunday on Bloomberg Radio.
Speaker 2: Nathan now to a political issue in Texas that's caught
Speaker 2: the nation's attention. Democratic lawmakers in the Lone Star state
Speaker 2: have left the state to keep Republicans from redrawing their
Speaker 2: congressional map. Last month, the Justice Department determined four of
Speaker 2: Texas's House districts were racially jerrymandered. President Trump then called
Speaker 2: and Republicans to redraw the map to add five GOP
Speaker 2: seats ahead of next year's midterms. Democratic Illinois Governor JB.
Speaker 2: Pritzker is blessing the Republicans.
Speaker 10: Trump came up with a new scheme rig the system
Speaker 10: by ramming through a corrupt mid decade redistricting plan that
Speaker 10: would steal five congressional seats, silencing millions of voices, especially.
Speaker 11: Black and Latino votes. Let's be clear, this is not
Speaker 11: just rigging the system in Texas. It's about rigging the
Speaker 11: system against the rights of all Americans.
Speaker 2: Illinois Governor JB. Pritzker spoke at a news conference alongside
Speaker 2: many of the Texas Democrats saface fines of five hundred
Speaker 2: dollars a day for leaving the state legislature short of
Speaker 2: a quorum. Texas Governor Greg Abbott says a court could
Speaker 2: decide whether the lawmakers have abandoned their office, allowing him
Speaker 2: to swiftly replace them. State Attorney General Ken Paxton posted
Speaker 2: on x that the lawmakers should be arrested and brought
Speaker 2: back to the capital.
Speaker 3: Let's turn back to the markets now, Karen. Futures are
Speaker 3: higher as we kick off the trading week. On Friday,
Speaker 3: stocks sold off after the week jobs data. The S
Speaker 3: and P five hundred fell one point six percent, while
Speaker 3: the Nasdaq lost two and a quarter percent. Morgan Stanley
Speaker 3: is recommending investors buy stocks on any pullbacks. In a note,
Speaker 3: strategist Mike Wilson said, quote, We're buyers of pullbacks and
Speaker 3: bullish the next twelve months end quote. He added that
Speaker 3: he thinks the Fed will eventually transition to interest rate cuts.
Speaker 2: Well Nathan stocks in Switzerland and falling half a percent
Speaker 2: on concerns President Trump's punitive thirty nine percent export tariff
Speaker 2: on the country will denned corporate profits. The market was
Speaker 2: closed Friday, for all holiday, so prices had not yet
Speaker 2: reflected the tariffs or the President's push for drug makers
Speaker 2: to lower prices.
Speaker 3: And Karen Oil is down more than one percent this morning.
Speaker 3: OPEC Plus has closed a two year chapter in its
Speaker 3: oil strategy, completing a series of oil production increases, but
Speaker 3: delegates emphasized that the next move could be a cut
Speaker 3: or a hike.
Speaker 2: Time now for look at some of the other stories
Speaker 2: making news in New York and around the world. And
Speaker 2: for that we're joined by Bloomberg's John Tucker. John, Good Morning,
Speaker 2: Good morning.
Speaker 12: Karen. Blackstone reopening its New York headquarters this morning after
Speaker 12: keeping the office shuttered the wake of that shooting spree
Speaker 12: that killed four people, including one of its senior executives
Speaker 12: last week. The world's biggest alternal advansset manager also gave
Speaker 12: to have the option to work remotely for the entire week.
Speaker 12: Official to say it was a miracle nobody was hurt.
Speaker 12: A large concrete and steel awning collapsed onto the sidewalk
Speaker 12: in Brooklyn Sunday. The yawning connected to the Hotel Saint George,
Speaker 12: which opened more than one hundred years ago. A three
Speaker 12: point zero magnitude earthquake shook out the area outside New
Speaker 12: York City Saturday night, with the epicenter rooted in Hasburg Heights,
Speaker 12: New Jersey. People across the tri state area reported feeling
Speaker 12: tremor shortly after ten pm.
Speaker 13: We're we're seeing my living room in the whole house shoke.
Speaker 12: Nobody was hurt. Republican hopes of holding on to power
Speaker 12: in the Senate after the twenty twenty six midterms are
Speaker 12: receiving a boost from powerful, well funded super packs. That
Speaker 12: story from Bloomberg's Amy Morris.
Speaker 5: New filings show large sums of cash flowing to aid
Speaker 5: Republican candidates in states including South Carolina, Louisiana, Florida, Michigan,
Speaker 5: and Maine. Superpacks may play a significant role in influencing
Speaker 5: the outcome of the twenty twenty six primaries and general elections,
Speaker 5: when control of the House and the Senate are up
Speaker 5: for grabs. In other FEC filings, Elon Musk donated five
Speaker 5: million dollars apiece to the Congressional Leadership Fund and Senate
Speaker 5: Leadership Fund, which aid House and Senate Republicans respectively. In Washington,
Speaker 5: Amy Morris, Bloomberg Radio.
Speaker 13: I'm a WKRP.
Speaker 12: And Simpson Lannie Anderson, best known for her role on
Speaker 12: the radio station sitcom WKRP in Cincinnati, has died. She
Speaker 12: was seventy nine. Her publicist said she died Sunday in
Speaker 12: Los Angeles after in acute prolonged illness. Global News twenty
Speaker 12: four hours Day and whenever you want it with Bloomberg
Speaker 12: News Now, I'm John Tucker. Vic's Bloomberg Karen.
Speaker 2: All right, John Tucker, thank you time now for the
Speaker 2: Bloomberg Spores update. Here's John stash Hour, John, good.
Speaker 14: Morning, you want to care?
Speaker 2: In?
Speaker 14: The Miami Marlins had previous series wins with the Yankees.
Speaker 14: In fact, they once won a World Series from them,
Speaker 14: but they had never swept. The Yanks had that wild
Speaker 14: thirteen to twelve win Friday night, two nothing shut out Saturday,
Speaker 14: and then they got to Luis Heel early on spoiling
Speaker 14: Heels season debut. Later put the game away.
Speaker 15: That's a shot deep right field, quick back his belcher,
Speaker 15: He looks up and it's gone. Kyle Stowers has done
Speaker 15: it again, this time a three run shot off the left, six.
Speaker 14: One Miami on Marlins TV. Miami won seven to three.
Speaker 14: To spite the difference in payroll, the Yankees is more
Speaker 14: than double the sweep not all that surprising. Since June thirteenth,
Speaker 14: the Marlins record is thirty and fourteen. The Yankees record
Speaker 14: in that time is eighteen and twenty seven. Are now
Speaker 14: in third place. Red Sox a weekend sweep at Fenway.
Speaker 14: The West leading Astro Socks won six to one behind
Speaker 14: Lucas Giolito gave up just three hits. He's now eight
Speaker 14: and two at City Field and ex Red Sock dd
Speaker 14: damage to the Mets.
Speaker 16: He swashes out on the right field. Oh my goodness,
Speaker 16: headed for those second duck, a three run Classic Devers
Speaker 16: home run, and it's four to one Giants and he
Speaker 16: is floating around the bases. That's big boy, big boy
Speaker 16: to end.
Speaker 2: Wow.
Speaker 14: Giants TV calling the Raffie Devers homer. Day after the
Speaker 14: Mets won twelve to six. The Giants won twelve to four,
Speaker 14: but Phillies topp Detroit two to nothing in the Phils
Speaker 14: takeover first place. The first ever MLB game in Tennessee
Speaker 14: and the first of a NASCAR track postponed from Saturday
Speaker 14: due to ragin announced crown of ninety one thousand, so
Speaker 14: the Braves beat the Red Spot to two. The Wyndham
Speaker 14: golf in Greensboro, won by American Cam Young. He finished
Speaker 14: twenty two under par, one by six shots at one point,
Speaker 14: led by nine. It's his first PGA win. John Station
Speaker 14: went Bloomberg Sports.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius Exam
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business opp This is Bloomberg.
Speaker 14: Good Morning.
Speaker 3: I'm Nathan Hager. President Donald Trump is getting ready to
Speaker 3: put his stamp on the Federal Reserve and the agency
Speaker 3: that puts out the monthly jobs report. The President says
Speaker 3: he's going to rename replacements for FED Governor Adriana Kugler
Speaker 3: and his fired Bureau of Labor Statistics chief Erica mcintarfer.
Speaker 3: Very soon.
Speaker 4: We'll be announcing a new statistician sometime over the next
Speaker 4: three four days. We had no confidence. I mean, the
Speaker 4: numbers were ridiculous what she announced.
Speaker 3: That was the President speaking to reporters on his way
Speaker 3: back to Washington from Bedminster, New Jersey.
Speaker 12: This morning.
Speaker 3: We're joined by Bloomberg News Senior editor Bill Ferries. And
Speaker 3: Bill after all the pressure that we have seen from
Speaker 3: President Trump on the Federal Reserve, now with the firing
Speaker 3: of the BLS chief, we go into a pretty unprecedented territory.
Speaker 12: Good morning, Yeah, good morning.
Speaker 13: Yeah, it's true. It's a highly unusual move to go
Speaker 13: after the head of essentially the government's chief statistics bureau.
Speaker 13: The BLS has long been considered the gold standard when
Speaker 13: it comes to collecting this data, and there have been
Speaker 13: challenges with getting enough responses to the data, and perhaps
Speaker 13: that has explained some of the revisions that we've seen.
Speaker 13: But revisions have been typical for decades. So it does
Speaker 13: seem the President is reacting more. He's going after the
Speaker 13: messenger here because of frustrations over the message. But as
Speaker 13: you mentioned, there's also a heap of pressure on the
Speaker 13: Federal Reserve and Trump getting a chance to shape it
Speaker 13: a few months earlier than he probably expected.
Speaker 3: To, considering that Adrona. Kugler's term wasn't due to expire
Speaker 3: until January. The President says he thinks that Kugler stepped
Speaker 3: aside because she agrees with him on the need to
Speaker 3: lower interest rates. Is that the sense that we have
Speaker 3: that that's the reason why she's stepping aside.
Speaker 13: Yeah, there's no, there's really no evidence of that in
Speaker 13: terms of her previous comments or her stance at the
Speaker 13: these chief these key meetings that they have on rates.
Speaker 13: I do think though it obviously gives the President a
Speaker 13: chance to get someone in onto the FED who shares
Speaker 13: his view, at least philosophically, that interest rates should be
Speaker 13: coming down and coming down faster, and perhaps even basically
Speaker 13: put in someone in the job who would be his
Speaker 13: replacement for Jerome Powell when Palell's term expires in May.
Speaker 3: So could we get begetting to a situation where we
Speaker 3: could see something like a shadow FED share once this
Speaker 3: announcement is put in place here. I mean, I've got
Speaker 3: to imagine there's going to be a lot of attention
Speaker 3: on the Senate confirmation process for whoever replaces Governor Coogler.
Speaker 13: Yeah, certainly, and that process will take you know, will
Speaker 13: take some time. So it's not going to be an
Speaker 13: immediate thing, but there's going to be you know, as
Speaker 13: soon as that name comes out, there's gonna be a
Speaker 13: lot of scrutiny. There's going to be a lot of
Speaker 13: look at any papers or public comments. I mean, we
Speaker 13: may very well when you look at some of the
Speaker 13: people who are likely on the short list we're talking about,
Speaker 13: you know National Economic Council director Kevin Hassett, former FED
Speaker 13: Governor Kevin Walsh, they would possibly be on that list.
Speaker 13: There's always been speculation that Scott Besst, the Treasury Secretary,
Speaker 13: could be on it. So you know these people, these
Speaker 13: are people who have been very supportive of the President,
Speaker 13: who have backed his idea that rate should come down.
Speaker 13: Powell is still in that job until May. I mean
Speaker 13: he's the one who will be making the arguments in
Speaker 13: those policy committee meetings, but there will certainly be the
Speaker 13: market will be pricing in changes that come after Powell leaves.
Speaker 3: On top of the pressure from the President, on the
Speaker 3: FED and the BLS, Bill, Boeing is facing some rare
Speaker 3: pressure from its defense factory workers this morning.
Speaker 13: That's right, we're seeing a real unusual strike by Boeing workers.
Speaker 13: In this case, it's the first time in almost thirty
Speaker 13: years workers at the Saint Louis factories striking after they
Speaker 13: reach to the company's contract office offer. We're talking about
Speaker 13: thirty two, one hundred machinists who walked off the job.
Speaker 13: The union's last strike was about ninety nine days. I
Speaker 13: mean Boweing listen. Bowing has had several very difficult years.
Speaker 13: It's been caught up in the spat with China. They
Speaker 13: weren't able to sell a lot of their planes to
Speaker 13: China in that time. They had the crash of the
Speaker 13: Max several years ago, so this kind of comes on
Speaker 13: top of a lot of tumult at Boeing. So I
Speaker 13: think they'll be looking to try to resolve this as
Speaker 13: soon as possible and get back to work. But it is,
Speaker 13: you know, it's been almost thirty years, so we're almost
Speaker 13: in unprecedented territory.
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