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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here

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Speaker 2: are the top stories we're following today, Lisa.

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Speaker 3: Investors are bracing for a possible historic legal fight between

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Speaker 3: the White House and the Federal Reserve. President Trump has

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Speaker 3: moved to oust FED Governor Lisa Cook following allegations she

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Speaker 3: falsified mortgage documents. Cook has responded once again, saying the

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Speaker 3: President has no authority to fire her and she won't quit.

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Speaker 3: We get more from Bloomberg Economics reporter Katta Dmitrieva.

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Speaker 4: She's on the FOMC. Importantly, that's the committee that votes

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Speaker 4: to set interest rates. Importantly, she's also the first black

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Speaker 4: woman to serve on the FED board and was appointed

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Speaker 4: by Biden in twenty twenty two, and her term wasn't

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Speaker 4: said to expire until twenty thirty eight, so more than

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Speaker 4: a decade from now up until these allegations. So the

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Speaker 4: allegation stemmed from Bill Poulty, who's the Federal Housing Finance

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Speaker 4: Agency head, and he posted on social media alleging that

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Speaker 4: Cook had committed mortgage fraud.

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Speaker 3: Bloomberg's Katya Demitrieva reports Lisa Cook's lawyer is planning to say, quote,

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Speaker 3: whatever actions are needed to prevent President Trump's quote illegal action.

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Speaker 3: Forcing Cook out would give the President an opportunity to

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Speaker 3: secure a four person majority on the fed's seven member

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Speaker 3: Board of Governors.

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Speaker 2: Well reaction pouring into this showdown between the White House

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Speaker 2: and the Fed. Nathan Danielle di Martino Booth is a

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Speaker 2: former advisor to the president of the Dallas Federal Reserve.

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Speaker 5: There is, indeed the opportunity for Governor Cook to immediately

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Speaker 5: go to the courts and an ash for and injunction

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Speaker 5: such that she stay in her position while this while

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Speaker 5: the courts decide what the path is going to be. Again,

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Speaker 5: I'm no legal expert, but everything that I've read this

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Speaker 5: evening since this news hit suggests that she can indeed

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Speaker 5: make every attempt to stop this right now.

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Speaker 2: Former Dallas Feed advisor Danielle de Martino Booth. Now no

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Speaker 2: charges have been filed against Cook, there were Justice Department

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Speaker 2: official last week signaled possible plans to investigator Alisa.

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Speaker 3: President Trump is also issuing a new trade threat against

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Speaker 3: countries with digital services taxes. In a social media post,

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Speaker 3: he said he will impose fresh tariffs and export restrictions

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Speaker 3: on advanced tech and chips unless other nations drop measures

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Speaker 3: that he says discriminate against US tech. Polk Amesa with

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Speaker 3: Javelin Wealth Management says this adds more uncertainty to the

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Speaker 3: tech sector.

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Speaker 6: Canada did give in on on on the digital tax,

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Speaker 6: but Europe is holding firm. So it's again we feel

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Speaker 6: that you can't make long term predictions based on a

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Speaker 6: turre of being announced or threatened now and then being

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Speaker 6: taken off again or some deal being struck. So I

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Speaker 6: still think that it's probably going to be again a

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Speaker 6: negotiation some Dean's bean's truck.

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Speaker 3: Javelin Wealth's Polkamieshra says she does not think President Trump's

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Speaker 3: terror threats will derail the overall AI rally well.

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Speaker 2: Later this week, Nathan China is sending a key trade

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Speaker 2: negotiator to Washington as the latest ninety day tariff pause

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Speaker 2: with the US continues. The Wall Street Journal reports Chinese

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Speaker 2: Vice Commerce Minister Lee chen Gang we'll meet with US

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Speaker 2: Trade Representative Jamison Greer and Treasury Department officials, along with

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Speaker 2: US business figures. President Trump says when it comes to

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Speaker 2: trade with China, the US has the upper hand.

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Speaker 7: They have some cards.

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Speaker 8: We have incredible cards, but I don't want to play

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Speaker 8: those guys that wouldn't do. If I played those cards,

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Speaker 8: that would destroy China.

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Speaker 9: I'm not going to play those goods.

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Speaker 10: President Trump says.

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Speaker 2: The US cards include parts of Boeing planes that he

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Speaker 2: says he held back due to China's policies on rare

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Speaker 2: earth magnets. China halted most shipments of those key minerals

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Speaker 2: to the US in April, but agreed to normalize flows

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Speaker 2: as part of the latest trade truce.

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Speaker 3: Well, we're looking at stocks in France this morning, Lisa.

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Speaker 3: They are down on one point eight percent. That's what

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Speaker 3: French Prime Minister Francois Bayrou calling a confidence vote that

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Speaker 3: may top or his government as soon as next month.

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Speaker 3: We get more from Bloomberg's Caroline Conna in Paris.

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Speaker 7: Sois Beiro's idea was to anticipate the social anger by

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Speaker 7: calling this vote of no confidence two days before. Several

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Speaker 7: far left groups have threatened to totally block the country

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Speaker 7: on September tenth, So trying to avoid some sort of

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Speaker 7: general strike and general protests in the streets. But clearly

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Speaker 7: since Francoiber, who presented his initial budget plan mid July

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Speaker 7: with forty four billion euros of savings. He hasn't really

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Speaker 7: managed to convince French public opinion that this is the.

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Speaker 6: Right way to go.

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Speaker 10: Bloomberg's Caroline Conna says.

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Speaker 3: The far right National Rally Party, the leftist France on Boo,

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Speaker 3: the Greens and the Socialists all say they will vote

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Speaker 3: against the September eighth motion, which gout forced Beiru two

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Speaker 3: submit his government's resignation.

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Speaker 2: Well, turning back to the markets now, Nathan, we are

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Speaker 2: just one day away from the eagerly awaited earnings report

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Speaker 2: from Nvidia. Bloomberg's Pretty Gupta says the results could have

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Speaker 2: a major impact on global markets.

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Speaker 11: This is a big one this time around for a

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Speaker 11: couple of reasons. Nvidia has grown into not only the

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Speaker 11: most expensive and largest company in the world, but also

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Speaker 11: one that has a lot of ripple effects because from

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Speaker 11: a thematic trading point of view, it has geopolitical implications.

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Speaker 11: It means big things for other mega cap tech players

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Speaker 11: like Apple, Amazon, Alphabets, even though they're not all in

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Speaker 11: the same category of company necessarily, they are still mega

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Speaker 11: cap tech. And then, of course it kind of sets

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Speaker 11: the bar for other chip companies as well.

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Speaker 2: Bloomberg's Pretty Gupta says in Nvidia is the biggest weight

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Speaker 2: in the S and P five hundred at almost eight percent.

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Speaker 3: And staying in the tech space, Lisa Elon Musk is

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Speaker 3: suing Apple and open Ai, accusing them of colluding to

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Speaker 3: block rivals in the artificial intelligence market. In the federal lawsuit,

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Speaker 3: Musk's x and Xai claim Apple's integration of chat GPT

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Speaker 3: into iPhones gives it an unfair monopoly deprives consumers of choice.

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Speaker 10: Mark German is covering this story for Bloomberg.

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Speaker 12: Elon is right, they do give pretty hot promotion to

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Speaker 12: some of the other AI companies in the app store.

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Speaker 12: They haven't done a lot of that promotion for Groth

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Speaker 12: and so maybe we'll see more of that from Apple.

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Speaker 12: But all in all, I find this lawsuit to be frivolous.

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Speaker 12: I don't personally consider it an antitrust situation, but it's

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Speaker 12: obviously not up to me to decide, and it is

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Speaker 12: a little surprising that Elon Musk actually went.

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Speaker 10: Through with this.

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Speaker 3: Bloomberg's Mark German says Musk is seeking billions of dollars

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Speaker 3: in damages. Apple hasn't commented, but open Ai is dismissing

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Speaker 3: the case as harassment, and.

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Speaker 2: A new research report finds artificial intelligence is making it

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Speaker 2: harder for entry level workers in the US to find

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Speaker 2: jobs in fields like software development and customer service. Stanford

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Speaker 2: University researchers say they found that over the last three years,

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Speaker 2: employment has dropped thirteen percent for people who were just

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Speaker 2: starting out in fields determined to be the most exposed

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Speaker 2: to AI, things like accountants, developers, and administrative assistants. All right,

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Speaker 2: time now for a look at some of the other

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Speaker 2: stories making news in New York and around the world.

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Speaker 2: For that, we're joined by Bloomberg's Michael bar Good morning, Michael, Good.

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Speaker 9: Morning, Lisa. Illinois Governor JB. Pritzker and Chicago Mayor Brandon

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Speaker 9: Johnson held a joint news conference slamming reported efforts by

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Speaker 9: the government to potentially call up the National Guard in Chicago,

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Speaker 9: just days after the Guard was deployed to cross Washington,

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Speaker 9: DC earlier Monday. Inside the Oval Office, President Trump called

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Speaker 9: the city a killing field Chicago.

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Speaker 1: Everybody knows how that it is.

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Speaker 12: Everybody standing there and knows we know you don't have

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Speaker 12: to be doing any studies.

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Speaker 9: Governor Pritzker, Donald Trump looked at the assembled cameras and

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Speaker 9: asked for me personally to say, mister president.

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Speaker 10: Can you do us the honor of protecting our city?

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Speaker 3: Said I say, mister President, do not come to Chicago.

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Speaker 9: According to Chicago Police, violent crimes are all down from

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Speaker 9: twenty twenty four, including a thirty three percent reduction in homicides.

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Speaker 9: Kilmar Abrego Garcia is protected from redeportation for now. A

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Speaker 9: federal judge rule that the government is forbidden from sending

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Speaker 9: Abrego Garcia to Uganda while the matter is litigated. The

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Speaker 9: Salvadoran immigrant was mistakenly deported in March. He was returned

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Speaker 9: to the US in June, then charged with human smuggling

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Speaker 9: and is now detained by Ice in Baltimore. The co

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Speaker 9: founder of Mexico's powerful Sineloa cartel pleaded guilty Monday to

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Speaker 9: federal drug trafficking charges. Seventy five year old Ismail Zambona Garcia,

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Speaker 9: who is also known as El Mayo, pleaded guilty in

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Speaker 9: a Brooklyn courthouse, including engaging in a continuing criminal enterprise

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Speaker 9: with thirty five years. Judge Brian Cogan said he was

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Speaker 9: sent Zimbada to life in prison. Attorney General Pam Bondi.

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Speaker 13: El Maya will spend the rest of his life behind bars.

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Speaker 13: He will die in a US federal prison where he belongs.

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Speaker 9: Ag Bondi, says. Zimbada. Garcia admitted in court to quote

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Speaker 9: directing people under my control to kill others to further

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Speaker 9: the interests of my organization. Global news twenty four hours

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Speaker 9: a day and whenever you want it with Bloomberg News. Now.

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Speaker 9: I'm Michael Barr, and this is Bloomberg LEAs.

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Speaker 2: Thank you, Michael. Time now for our Bloomberg Sports update,

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Speaker 2: and for that we bring in Dan Schwartzman.

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Speaker 8: Thanks Nathan. Major League Baseball Scoreboard, the Mets dominate the

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Speaker 8: Phillies thirteenth to three, while the Yankees of both the

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Speaker 8: Nationals ten to five. Elsewhere Division leaders, the Blue Jays,

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Speaker 8: the Brewers, and the Dodgers all win, as do the

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Speaker 8: Red Sox and Mariners, who get another homer from Cal Rawley,

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Speaker 8: his fiftieth, while the Tigers lose their second straight no upsets,

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Speaker 8: and the men throughout the US Open as Carlos al

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Speaker 8: Karaz and Jack Draper dvance's second round, and the women's

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Speaker 8: raw six seed Mass and Keys disasted in the first

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Speaker 8: round by Renata Zarazua. Meanwhile, forty five year old Venus

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Speaker 8: Williams played her first Grand Slam match in two years,

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Speaker 8: falling to Karolino Musheva in three sets. It's cut down.

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Speaker 8: The NFL active rosters have to be trimmed to fifty

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Speaker 8: three by four pm Eastern Time today. That's your Bloomberg

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Speaker 8: Sports Update. Stay with us.

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Speaker 10: More from Bloomberg Daybreak coming up after.

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Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 10: Good Morning on Nathan Hager.

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Speaker 3: It is a threat to President Donald Trump's been making

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Speaker 3: for days, even as late as last week's Jackson Hole symposium.

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Speaker 3: Weather to fire Federal Reserve Governor Lisa.

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Speaker 1: Cook gonfi Alwisa Cooke, the Fed governor of her morning

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Speaker 1: fun or if.

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Speaker 12: She doesn't resign, you know, she's see what she did

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Speaker 12: was a band, So I'll fire her if she doesn't resign.

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Speaker 3: And now President Trump is moving to follow through on

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Speaker 3: that thread, posting on social media he has sufficient cause

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Speaker 3: to fire Cook for allegedly making false statements on mortgage loans,

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Speaker 3: but Cook is questioning the president's authority, vowing to stay

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Speaker 3: on the board, joining us now Bloomberg Economics reporter Katya Dmitrieva, Katya,

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Speaker 3: good morning. This seems like a culmination of a threat

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Speaker 3: that the president has been making for some time.

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Speaker 10: But with Cook vowing to stay on, where does this

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Speaker 10: go from here?

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Speaker 4: Good morning, good morning, and good evening here in Hong Kong.

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Speaker 4: I mean, that's kind of the big question, right. We're

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Speaker 4: in completely uncharted territory here with this move. We've never

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Speaker 4: had a president before getting rid of a fed governor

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Speaker 4: in this way, and suffice to say, by social media

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Speaker 4: as well, because it's all of course stems from that

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Speaker 4: social media post by Bill Pulti, the Federal Housing Finance

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Speaker 4: Agency head, who told his followers and told the world

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Speaker 4: essentially that had committed mortgage fraud and just to catch

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Speaker 4: people up on this if they hadn't been tuning in

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Speaker 4: in recent days. Basically, the allegations are that she purchased

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Speaker 4: two homes within the span of a year in different states,

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Speaker 4: and both of them were putting down that it was

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Speaker 4: going to be her primary residence, so raising some eyebrows there.

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Speaker 4: And to be clear, no charges have been filed. Even

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Speaker 4: at this point, even as the president is said he's

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Speaker 4: moving towards firing her, and Cook has said, of course

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Speaker 4: that she's innocent and she'll be staying in the role.

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Speaker 3: Of course, that raises a lot of questions, not the

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Speaker 3: least of which is whether a president could fire a

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Speaker 3: FED governor for cause on an issue like this, and

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Speaker 3: on an issue that hasn't been fully litigated yet.

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Speaker 4: Yeah, and technically they can. So technically a president can,

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Speaker 4: and the reasons are quite broad. So there's generally three

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Speaker 4: buckets that would give a president the right to fire

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Speaker 4: a FED governor. It's inefficiency, neglect of duty, and malfeasance.

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Speaker 4: A president hasn't fired a governor before, though, so this

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Speaker 4: is a lot of kind of untrodden ground. But what

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Speaker 4: we do know legally what could happen if Trump does

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Speaker 4: move forward to remove her from the role, then she

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Speaker 4: has the ability and her lawyers have the ability to

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Speaker 4: take this to court and to litigate it, so she

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Speaker 4: would be able to get reinstated in her role continue

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Speaker 4: as that litigation is ongoing and would probably go up

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Speaker 4: to the Supreme Court. Now, she has said and her

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Speaker 4: lawyers have said that they'll do everything in their power,

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Speaker 4: and they in fact called Trump's actions illegal. And as

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Speaker 4: far as we know, what she's told us is that

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Speaker 4: she's not going to be, in her words, bullied into

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Speaker 4: leaving her position. She's going to stay in the position

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Speaker 4: for now.

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Speaker 3: Now we know the President has been threatening this for

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Speaker 3: some time, but I've got to ask, why do this

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Speaker 3: now when we've gottenn indication so Jackson Hole just last

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Speaker 3: week from Chairman Powell that he's at least open to

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Speaker 3: cutting into got about thirty seconds left.

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Speaker 4: Yeah, that's a great question. I mean, if you're in

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Speaker 4: the markets right now, maybe you think that he's angling

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Speaker 4: to cut rates sooner and really make sure that they

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Speaker 4: cut rates. I mean, look, we're what we've heard from

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Speaker 4: officials is that they're just doing their job. They're going

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Speaker 4: after an official who has done some questionable things on

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Speaker 4: their mortgage application. But you do have to look at

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Speaker 4: the numbers. If she leaves, that's four members of the board,

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Speaker 4: a majority voting majority on the FMC who would be

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Speaker 4: Trump allies. So the math kind of works in his

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Speaker 4: favor as well.

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