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

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen, we begin with the story that has had markets

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Speaker 2: in a headspin, the White House pressure campaign on Federal

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Speaker 2: Reserve Chairman Jerome Powell. President Trump reportedly floated the idea

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Speaker 2: of firing the FED chair in a room with Congressional

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Speaker 2: Republicans this week. The President says he does not intend

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Speaker 2: to fire Powell, but an Oval Office comments heard live

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Speaker 2: on Bloomberg Radio, he did have a caveat.

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Speaker 4: I don't love anything, but I think it's highly unlikely

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Speaker 4: unless he has to leave fraud. I mean it's possible,

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Speaker 4: as fraud involved with the two point five two point

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Speaker 4: seven billion dollar renovation.

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Speaker 2: President Trump has had the renovation of the Fed's two

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Speaker 2: main buildings is over budget and too lavish.

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Speaker 5: Well.

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Speaker 3: Nathan Bloomberg's and Marie hor Dern was in the Oval

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Speaker 3: Office for the president's remark. She asked hibout reports that

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Speaker 3: he waived a draft letter firing Powell before Congression of Republicans,

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Speaker 3: your large.

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Speaker 4: Republican lawmakers last night. No I talked about the concept

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Speaker 4: of fire and I said, what do you think?

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Speaker 6: Almost every one of them said I should.

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Speaker 4: But I'm more conservative than they are.

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Speaker 3: And it's unclear whether the President has the power to

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Speaker 3: remove the FED share, but the pressure might not let up.

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Speaker 3: Several of the President's aids, including White House Budget Director

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Speaker 3: Russell Vode and Federal Housing Finance Chief Bill Poulte, are

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Speaker 3: pushing to inspect the fed's renovation.

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Speaker 2: Of course, Karen, you can expect that plenty of reaction

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Speaker 2: will continue to pour into the possibility of firing the

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Speaker 2: FED chair. Bloomberg's David Weston caught up with Bank of

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Speaker 2: America CEO Brian moynihan.

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Speaker 7: The FED as an independent agency, and they're meant to

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Speaker 7: be outside the purview of the executive and Congress. They

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Speaker 7: are called a task and are monitored and they're reviewed

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Speaker 7: at all the things. But the really reality was set

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Speaker 7: up to be inte petit, so that our central bank

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Speaker 7: in America was indepetit.

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Speaker 2: Bank of America CEO Bran and Moynihan's thoughts recorded by

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Speaker 2: Massachusetts Senator and frequent Powell critic Elizabeth Warren. She tells

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Speaker 2: Bloomberg the FED needs to remain independent.

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Speaker 8: People in the Cabinet. People are serving in the administration,

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Speaker 8: serve at the pleasure of the president.

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Speaker 9: That is the structure.

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Speaker 10: That is fine.

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Speaker 8: Donald Trump wants to get mad at one of them

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Speaker 8: and fire them, have at it, baby. But it's different

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Speaker 8: for the FED share and that is why that office

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Speaker 8: needs to be held by someone who is independent.

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Speaker 2: For the full conversations with Elizabeth Warren and Brian moynihan,

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Speaker 2: head over to the Bloomberg podcast channel on YouTube.

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Speaker 3: Well Nathan. A few hours ago, the Senate passed about

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Speaker 3: nine billion dollars in federal spending cuts requested by President Trump,

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Speaker 3: including deep reductions to public broadcasting in four and aid

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Speaker 3: and we get the latest at Bloomberg's Monica Ricks.

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Speaker 10: The fifty one to forty eight vote wraps up a

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Speaker 10: thirteen hour vote rama on the Senate floor, passing President

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Speaker 10: Trump's request to cut about eight billion in global aid programs,

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Speaker 10: including You Said, and another billion for the Corporation for

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Speaker 10: Public Broadcasting, which supports public radio and television stations like

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Speaker 10: NPR and PBS. Republicans Lisa Murkowski of Alaska and Susan

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Speaker 10: Collins of Maine joined all Democrats in opposing the package.

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Speaker 10: It now heads to the House for approval ahead of

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Speaker 10: a deadline tomorrow before Trump consigned into law. Monica Rix

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Speaker 10: Bloomberg Radio A.

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Speaker 2: Right, Moonica, thank you now to the latest on the

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Speaker 2: trade front. President Trump says he'll send letters to more

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Speaker 2: than one hundred and fifty countries notifying them their teriff

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Speaker 2: rates could be ten or fifteen percent. In recent days,

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Speaker 2: the President's unleashed a barrage of tariff demands, informing other

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Speaker 2: economies of new duties that'll kick in August first if

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Speaker 2: they cannot negotiate better terms with the.

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Speaker 6: US hey then.

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Speaker 3: A new survey suggests a record share of American firms

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Speaker 3: froze investments in China's trade ties worsened earlier this year.

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Speaker 3: Fewer than half of the companies surveyed by the US

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Speaker 3: China Business Council between March and May so they planned

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Speaker 3: to invest in China in twenty twenty five. That's to

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Speaker 3: draw from a eighty percent last year, in a record

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Speaker 3: lo since the group began asking a similar question in

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Speaker 3: two thousand and six.

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Speaker 2: Karen, A major gathering of foreign policy professionals is underway

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Speaker 2: in Colorado, But as Bloomberg's David Gurra reports, the Trump

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Speaker 2: administration decided at the last minute not to allow senior

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Speaker 2: Pentagon officials to participate.

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Speaker 9: The Defense Department made the announcement one day before the

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Speaker 9: Aspen Security Forum was scheduled to start, saying its values

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Speaker 9: were not aligned with the administrations. Organizers had to cancel

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Speaker 9: on stage interviews with combatant commanders at a conference that

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Speaker 9: has traditionally hosted officials from Democratic and Republican administrations. Former

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Speaker 9: Ambassador Nicholas Burns, who helps run the forum, address the

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Speaker 9: Pentagon's decision in his opening remarks.

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Speaker 11: We regret it very much. But here's our response, and

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Speaker 11: we put out a statement you can all read it.

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Speaker 11: Our door is open, obviously to the Trump administration. We

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Speaker 11: want our government to succeed.

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Speaker 9: Speakers will include officials from President Trump's first term, alongside

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Speaker 9: advisors to president's Obama and Biden. In Aspen, Colorado, I'm

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Speaker 9: David Gura Bloomberg Radio.

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Speaker 3: All right, David, thank you well. President Trump also continues

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Speaker 3: to face questions about his administration's handling of the Jeffrey

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Speaker 3: Epstein case, but he says the focus on the late

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Speaker 3: sex offender is a distraction.

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Speaker 4: It's all been a big hoax. It's perpetrated by the

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Speaker 4: Democrats and some stupid Republicans and foolish Republicans fall into

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Speaker 4: the net.

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Speaker 3: And the President says Attorney General Pam BONDI should release

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Speaker 3: credible evidence in the case, but he says he knows

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Speaker 3: it's a hoax. Other Republicans are still pushing for a transparency,

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Speaker 3: including Florida's Anna Paulina Luna.

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Speaker 4: I've always advocated for transparency, but I do think it's

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Speaker 4: also probable, which is why we'd like to see the information.

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Speaker 4: Where I think the American people deserve to see the

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Speaker 4: information is that there was some tampering of evidence under

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Speaker 4: previous Deputy Director's authorities.

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Speaker 3: And Republicans have not given evidence of tampering or fraud

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Speaker 3: in the case. Meantime, Bloomberg News has learned former FBI

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Speaker 3: Director James Comey's daughter has been removed from her job

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Speaker 3: as a federal prosecutor in New York. Maureen Comy worked

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Speaker 3: on the Epstein case as well as the sex trafficking

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Speaker 3: trial of Sean Diddy Combs. The circumstances around her departure

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Speaker 3: are not immediately clear.

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Speaker 2: Turning to markets now, Karen the s and P five

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Speaker 2: hundred enters the day, near all time highs after whip

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Speaker 2: sign yesterday on the FED News. Earnings continue today. A

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Speaker 2: dozen companies in the SMP five hundred will be reporting,

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Speaker 2: including Netflix. We get a preview from Bloomberg's Tom Busby.

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Speaker 12: Thanks to the breath of its content, it's pricing power,

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Speaker 12: it's advertising supported tier and password sharing crackdown. Netflix now

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Speaker 12: has over three hundred million global subscribers, and new seasons

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Speaker 12: of hits like Squid Games, Wednesday, Stranger Things and more

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Speaker 12: will surely keep those subscribers paying up. But Netflix no

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Speaker 12: longer reports subscriber numbers, so investors will have to look

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Speaker 12: at advertising revenue from its push into live sports programming

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Speaker 12: like WWE Raw and UFC events. Bloomberg consensus calls for

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Speaker 12: revenue of eleven point zero six billion dollars earnix per

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Speaker 12: share of seven dollars and nine cents.

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Speaker 6: Tom Busby Bloomberg Radio.

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Speaker 3: All right, thank you all shares of Archer Daniels Midland.

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Speaker 3: They're down more than five percent this morning. The drop

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Speaker 3: for the corn syrup maker. It comes after President Trump

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Speaker 3: said Coca Cola has agreed to use real cane sugar

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Speaker 3: in coke in the US. Time. Now for a look

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Speaker 3: at some of the other stories making news in New

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Speaker 3: York and around the world, and for that we're joined

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Speaker 3: by Bloomberg's Michael bar Michael, good morning.

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Speaker 13: Good morning Karen. We're hoping the heavy rains from earlier

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Speaker 13: this week won't repeat itself today. In the Northeast. Bloomberg

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Speaker 13: Media Religis Rob Carolyn has the latest.

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Speaker 14: While we do have a frontal system headed our way,

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Speaker 14: it doesn't look like we're going to have the right

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Speaker 14: combination to produce flash flooding across a wide section of

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Speaker 14: the New York City area or in southern New England

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Speaker 14: like we had last week. There was some isolated flooding

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Speaker 14: outside the District of Columbia last night, but just don't

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Speaker 14: have the right ingredients. That's not to say that some

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Speaker 14: of the thunderstorms will pass through the region today won't

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Speaker 14: be able to produce heavy rain and localized flooding. It's

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Speaker 14: just I don't expect as many wide areas as we

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Speaker 14: saw outside of Boston last week, or around the Tri

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Speaker 14: State area as we had earlier this week.

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Speaker 6: I'm Rob Carolyn, Bloomberg Radio.

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Speaker 13: Thank you, Rob. Israel is launching strikes on portions of

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Speaker 13: Syria's capital, Damascus. The strikes on government facilities come after

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Speaker 13: the IDF said it is protecting the Dreuze community, a

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Speaker 13: minority population in Syria that also resides in parts of Israel.

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Speaker 13: At the White House, Secretary of State Marco Rubio says

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Speaker 13: the US is intervening.

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Speaker 15: We think we're on our way towards a real de

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Speaker 15: escalation and then hopefully get back on track and helping

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Speaker 15: Syria build a country and arriving at a situation and

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Speaker 15: in the Middle East as far more stables.

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Speaker 13: Drew's leaders say the Syrian government violated the terms of

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Speaker 13: a ceasefire, but Syrian officials refute that. A former commissioner

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Speaker 13: for the nypd as sued current Mayor Eric Adams and

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Speaker 13: three of his associates, accusing the group of running the

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Speaker 13: police force like a criminal enterprise. Thomas Donlin briefly led

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Speaker 13: the NYPD as interim commit Adams calls the accusations baseless

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Speaker 13: and absurd. Global News twenty four hours a day and

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Speaker 13: whenever you want it with the Bloomberg News Now, Michael Barn,

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Speaker 13: this is Bloomberg Karen.

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Speaker 3: All right, Michael Barr, thank you time now for the

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Speaker 3: Bloomberg Sports Update, brought to you by Flushing Bank and

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Speaker 3: here's John Stashauer.

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Speaker 16: John, good morning, Good morning Karin. One hundred and fifty

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Speaker 16: third Open Championship underway this morning and the early leaderboard

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Speaker 16: fifty five year old Phil Mickelson is time for the

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Speaker 16: ladies two hunder through nine defending chams Anders Schoffley just

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Speaker 16: teed off. He's playing with John Rahm and the surprise

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Speaker 16: US Open winner JJ Spahn. Next group has world number

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Speaker 16: one Scottie Scheffler with Colin Morikawa and Ireland Shane Lowry,

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Speaker 16: who won the Open the last time it was held

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Speaker 16: at Royal Port Rush in twenty nineteen. The only other

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Speaker 16: time it was held there was nineteen fifty one. It's

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Speaker 16: a homecoming for Northern Ireland native Rory McElroy.

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Speaker 5: Be here to see a lot of familiar faces, you know,

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Speaker 5: even some of the every you know hole on the

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Speaker 5: course has a different team of marshalls from different golf clubs,

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Speaker 5: and then just to see people that you know I've

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Speaker 5: met throughout the years right.

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Speaker 6: There this morning was really nice.

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Speaker 5: But yeah, it's it's really nice to be back and

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Speaker 5: obviously very very excited for the week.

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Speaker 16: Rory played this course when he was sixteen years old

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Speaker 16: and he shot a course record sixty one. They have

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Speaker 16: made it more difficult since then. His tea time today

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Speaker 16: just after ten o'clock WNBA. It was to be a

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Speaker 16: Caitlin Clark appearance in Brooklyn, but she missed her eleventh

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Speaker 16: game of the season of recurrence of her growing injury.

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Speaker 16: The Liberty beat the Fever easily. Breonna Stewart scored twenty

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Speaker 16: four NBA. Bradley Beal a star in Washington, not so

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Speaker 16: much of his two seasons in Phoenix, and the Suns

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Speaker 16: bought out his contract. Beal is headed to now play

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Speaker 16: for the LA Clippers. Headed to Washington to play for

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Speaker 16: the Commanders. Veteran edge rusher Von Miller, now thirty six,

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Speaker 16: not the player he was while in Denver. He got

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Speaker 16: released by Buffalo Johns Stashanwer Bloomberg Sports Karen.

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Speaker 1: Nathan Coast to coast on Bloomberg Radio nationwide on Serious 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 2: Good morning, I'm Nathan Hager, turning attention now to our

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Speaker 2: conversation with Bank of America Chairman and CEO Brian moynihan.

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Speaker 2: Following the big banks beat on earnings, moynihan joined Bloomberg's

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Speaker 2: David Weston to discuss the results, small business health, and

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Speaker 2: independence of the Federal Reserve. Brian moynihan also offered his

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Speaker 2: long term economic outlook.

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Speaker 6: Let's listen in conservers. Pretty good when you go to

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Speaker 6: small businesses.

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Speaker 7: That's more of the question small medium sized businesses because

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Speaker 7: the interest rate environment hits them harder because they borrow

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Speaker 7: on lines of credit short term for a lot of

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Speaker 7: their activities, and that rate went up substantially at anything

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Speaker 7: about the If I'm a one hundred million dollar company,

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Speaker 7: a fifty million dollar company here in North Carolina, and

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Speaker 7: I'm engaging in the world finance, I'm importing goods and

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Speaker 7: manufacturing them, further manufacturing, I'm selling them. You know, it

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Speaker 7: got pretty interesting here trying to figure out all the

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Speaker 7: trade and tariffs. So I think certainly on a tap

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Speaker 7: X rate helps them, meaning the big beautiful bill passing

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Speaker 7: and the tax rate. That's a very good thing. The

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Speaker 7: alternative would not been good if their tax rates would change.

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Speaker 7: A satisfactory resolution to the trade so that they can.

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Speaker 6: Learn the rules of the road.

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Speaker 7: Over the next thirty sixty ninety days and get their

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Speaker 7: plans for next year put together, and I think ultimately

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Speaker 7: they're gon We've got this satisfactory resolution on immigration and

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Speaker 7: population growth, because the end of the day, when I'm

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Speaker 7: hearing more from the construction companies, farming companies, and travel

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Speaker 7: entertainment type companies, is I'm starting to worry about I'm

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Speaker 7: starting to struggle with labor availability at any price, and

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Speaker 7: that's that we got to make sure they have the

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Speaker 7: workers because they will supply great service economy and continue

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Speaker 7: to grow.

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Speaker 17: One of the things you reported today was net interest income,

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Speaker 17: which is really important to all banks, but particularly Bank

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Speaker 17: of America, and just steady growth that you're showing in

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Speaker 17: that how sensitive are you to the rates set by

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Speaker 17: the Fed? If that comes down substantially, does that affect

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Speaker 17: the Bank of America much?

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Speaker 7: So embedded in our estimates. So we've told our the

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Speaker 7: world that this quarter we had fourteen point eight billion

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Speaker 7: dollars in that interesting income and that is the fourth

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Speaker 7: straight quarter of growth and came off the floor last year.

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Speaker 7: This quarter, when I was talking to you, was the

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Speaker 7: lowest it's been. This quarter was a record in the

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Speaker 7: company's history. And we're saying we're going to grow from

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Speaker 7: that record to fifteen five to fifteen seven and two

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Speaker 7: more quarters the third quarter and the fourth quarter. That

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Speaker 7: embeds in it the rate cuts in the market that

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Speaker 7: are expected by market.

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Speaker 6: We don't we only show it that way.

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Speaker 7: If you have rate cuts over above that, that would

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Speaker 7: hurt that number, but it would still grow frankly and

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Speaker 7: so and that the good thing about that is because

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Speaker 7: the great loan of Positi growth seven percent loan growth

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Speaker 7: four percent to Posit growth over the last year. That's

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Speaker 7: in the system that's capitalized it.

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Speaker 6: I mean, that's here. It doesn't go away.

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Speaker 7: And as that continues to stay and we add to it,

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Speaker 7: what you're starting to see is that sets us up

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Speaker 7: great for next year for further ANII growth and further

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Speaker 7: EPs growth. So this quarter was the trickiest quarter to

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Speaker 7: get through because of you. Every year we finally got

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Speaker 7: some ani growth, but you every year markets business doing

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Speaker 7: strong sixpence gross is a little more robust. That'll get

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Speaker 7: lined and then you'll see and I dropped the bottom

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Speaker 7: line and it will set up for twenty twenty six.

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Speaker 6: We dive the more growth.

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Speaker 17: When you talk about twenty twenty six, one of the

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Speaker 17: things we're going to have is all likely a new

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Speaker 17: FED chair. There's been a lot of talk even today

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Speaker 17: in Washington by the FED chair, and you said, you

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Speaker 17: believe in an independent FED. But if in fact President

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Speaker 17: Trump gets his wish, as is his right under law,

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Speaker 17: to appoint a new chair who will be more in

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Speaker 17: line with his views, he said he thinks the interest

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Speaker 17: rate really squ at one percent or even below that

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Speaker 17: is that good for Bank of America? Is that good

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Speaker 17: for the economy.

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Speaker 7: Well, let me make two things. One is you're absolutely right.

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Speaker 7: And May of next year, the term the curve FED

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Speaker 7: chair ends after being reappointed, and it's the right of

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Speaker 7: the elected president to appoint the next successor and go

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Speaker 7: through Congress. And I think in that dialogue around that

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Speaker 7: there'll be a lot of dialogue about, Okay, how do

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Speaker 7: you set interestrates? What do you think about interest rates?

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Speaker 7: Because the FED is an independent agency and they're meant

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Speaker 7: to be outside the purview of the executive.

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Speaker 6: And the Congress.

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Speaker 7: They are called to task and are monitored and they're

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Speaker 7: reviewed at all the things. But the really reality was

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Speaker 7: set up to be independit so that our central bank

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Speaker 7: in America was independent. So I think no matter who

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Speaker 7: gets in, they're going to look at it and have

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Speaker 7: to look at the facts and make a decision, because

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Speaker 7: if you drop rates too far, inflation may kick up

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Speaker 7: and then you're gonna have to raise them back quickly.

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Speaker 7: On the other hand, if you think the prior Fed

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Speaker 7: has been slow to the lower rates, you might lower

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Speaker 7: and faster. Our team believes that the Fed will lower

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Speaker 7: rates in a second half the next year by one

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Speaker 7: hundred basis points. No change until then because inflation is

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Speaker 7: still going through the system. That brings the FED funds

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Speaker 7: rate down closer to three, which they think is probably

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Speaker 7: more of a long term rate and frankly, is more

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Speaker 7: similar to what we had for most of American history.

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Speaker 7: What's been unusual is the period after the global financial crisis,

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Speaker 7: a very low interest rate structure. That is really not

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Speaker 7: a good place to be, honestly. We rather have a

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Speaker 7: higher interest rate structure, a little more inflation, a little

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Speaker 7: more robust economic growth. So I think everybody asks me

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Speaker 7: a little careful about keeping that engine going, because if

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Speaker 7: this engine fails, a whole world fails.

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