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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.

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Speaker 3: Lisa, we begin with the latest developments in President Donald

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Speaker 3: Trump's efforts to exert more control over the Federal Reserve.

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Speaker 3: Bloomberg News has learned the Trump administration is reviewing options

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Speaker 3: for exerting more influence over the fed's twelve regional banks

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Speaker 3: that would potentially extend its reach beyond personnel appointments. This

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Speaker 3: comes as the President tries to oust FED Governor Lisa

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Speaker 3: Cook on allegations of mortgage fraud. If he does, it

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Speaker 3: would give the President an opportunity to secure a majority

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Speaker 3: on the seven person FED Board of Governors. The President

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Speaker 3: has heard here on Bloomberg Radio, defended his decision to

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Speaker 3: get rid of Cook at a White House Cabinet meeting.

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Speaker 4: She seems to have had an infraction. And she can't

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Speaker 4: have an infraction, especially that infraction, because she's in charge of,

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Speaker 4: if you think about it, mortgages and people that are

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Speaker 4: one hundred percent above board, and it doesn't seem like

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Speaker 4: she was.

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Speaker 3: That was President Trump speaking at a cabinet meeting. Now

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Speaker 3: Fed Governor. Cook's lawyer is vowing to file a lawsuit

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Speaker 3: over the President's maneuver to oust her for cause from

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Speaker 3: the FED Board of Governors and Nathan.

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Speaker 2: Former FED Vice chair Lale Brainerd is suggesting there's a

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Speaker 2: real risk of multiple FED district bank presidents getting removed

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Speaker 2: from office next year as a result of politically charged

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Speaker 2: maneuvering by President Trump. Brainer tells Bloomberg she views the

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Speaker 2: president's a tax on Cook in the context of his

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Speaker 2: broader pressure on the Central Bank.

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Speaker 5: Well, I think the Federal Reserve is an incredibly difficult

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Speaker 5: position here, but you have to remember this is not

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Speaker 5: about an individual governor. This is really an unprecedented attack

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Speaker 5: on the independence of the Federal Reserve as an institution.

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Speaker 2: Former FED Vice chairl Brainerd warned that any political push

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Speaker 2: to revamp the FOMC would run the risk of stoking

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Speaker 2: inflation and longer term interest rates.

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Speaker 3: Well, it's turn of markets now, So, because it's the

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Speaker 3: report investors have been waiting for all week. After the

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Speaker 3: closing bell, Nvidia reports its latest quarterly earning, so we

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Speaker 3: get a preview from Bloomberg's Tom Busby.

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Speaker 6: And Vidia's Q two results expected to show the boom

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Speaker 6: and AI demand continues, Capex continues to grow, and Nvidia

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Speaker 6: continues to thrive with its cutting edge Blackwell chips now

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Speaker 6: with full production and selling well. One worry for the company, though,

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Speaker 6: is China, because of US restrictions on which chips it's

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Speaker 6: allowed to sell there, and Beijing urging companies there not

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Speaker 6: to use the older, less powerful chips that Nvidia does export.

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Speaker 6: Bloomberg Tech reporter Ian King speaking to Bloomberg TV on

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Speaker 6: Tuesday about this problem.

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Speaker 7: What is the US government going to do next?

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Speaker 3: What is the Chinese government going to do next? What

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Speaker 3: products will be allowed to be shipped? That the unfortunate

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Speaker 3: problem is we don't know.

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Speaker 6: Bloomberg consensus though, calls for revenue of forty six point

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Speaker 6: two three billion dollars on adjusted ernix per share of

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Speaker 6: one dollar in one cent. Tom busby Bloomberg Radio, All.

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Speaker 2: Right, thanks Tom, as we wait the Nvidio results. Some

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Speaker 2: other stocks making some news this morning, Bloomberg News has

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Speaker 2: learned the Justice Department is widening its probe of United Health.

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Speaker 2: Sources say the DOJ's criminal division is digging into the

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Speaker 2: company's prescription management services, as well as how it reimburses

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Speaker 2: its own doctors. The previously unreported areas of the probe

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Speaker 2: show the scrutiny is broader than was known and goes

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Speaker 2: beyond an inquiry into possible Medicare fraud. Shares of United

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Speaker 2: Health are down about two tens percent in early trading.

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Speaker 3: All on the flip side, Lisa shares of Cracker Barrel

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Speaker 3: are surging more than seven percent. The restaurant chains decided

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Speaker 3: to scrap plans for a new logo. Cracker Barrel faced

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Speaker 3: a backlash on social media since changing its vintage logo

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Speaker 3: by removing an image of a man leaning on a

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Speaker 3: barrel while making the lettering more modern. President Trump weighed

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Speaker 3: in yesterday. He posted on social media that the brand

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Speaker 3: should restore its old logo and apologize logo change did

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Speaker 3: lead to a big drop in the share price. Now,

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Speaker 3: Cracker Barrel says, quote, we think thank our guests for

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Speaker 3: sharing your voices and love for Cracker Barrel. We said

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Speaker 3: we would listen, and we have end quote.

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Speaker 2: They have all right, Nathan, Now let's get to the

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Speaker 2: latest on President Trump's train wars. The US has officially

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Speaker 2: slapped fifty percent on India's exports, doubling duties from twenty

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Speaker 2: five percent as punishment for buying Russian oil. The change

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Speaker 2: took effect at a minute after midnight after Wall Street time.

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Speaker 2: Bloomberg Shrewdy, Shriver Stava reports it's the highest tariff rate

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Speaker 2: of any the country in Asia.

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Speaker 8: US is the largest market export market for India. It's

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Speaker 8: the biggest trading partner with India, and Indian exporters sold

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Speaker 8: some eighty seven million dollars goods to the US market

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Speaker 8: last year. That's two percent of India's GDP. So definitely,

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Speaker 8: you know, such high tariffs of course shuts down the

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Speaker 8: market for Indian exporters. Now they will have to look

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Speaker 8: for other ways, other markets, newer markets to diversify. So

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Speaker 8: of course that is going to be a huge impact.

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Speaker 2: Bloomberg Shrewdy Shrivestava reports. The higher tariffs will hit labor

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Speaker 2: intentsive India like textiles and jewelry the hardest. Electronics and

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Speaker 2: pharmaceuticals are exempt for now. That includes Apple's massive new

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Speaker 2: factory investments in India and Lisa.

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Speaker 3: President Trump is once again warning of serious consequences if

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Speaker 3: Russia and Ukraine don't end their war. Here was the

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Speaker 3: President again at that cabinet meeting heard live on Bloomberg Radio.

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Speaker 4: I want to get it to and it.

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Speaker 7: Will not be a world war, but it'll.

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Speaker 4: Be an economic war. And an economic war is it's

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Speaker 4: going to be bad, and it's going to be bad

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Speaker 4: for Russia, and I don't want that.

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Speaker 3: The President was asked if he has a timetable for

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Speaker 3: Russian President Vladimir Putin to meet with Ukrainian President Vladimir

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Speaker 3: Zelenski before he would impose sanctions. The President raised the

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Speaker 3: possibility of bilateral talks during his Alaska summit with Putin,

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Speaker 3: but more than a week after that gathering, there is

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Speaker 3: no meeting scheduled between Putin and Zelenski.

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Speaker 2: In other news, Nathan SpaceX is celebrating a successful test

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Speaker 2: flight of Starship five.

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Speaker 4: Three two one.

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Speaker 2: Has heard here live on Bloomberg. The vehicle lifted off

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Speaker 2: from SpaceX's South Texas launch facility called Starbase. It's super

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Speaker 2: heavy booster, successfully separated from the Starship spacecraft as planned,

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Speaker 2: and then splashed down in the Gulf of Mexico. Advertised

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Speaker 2: as the largest and most powerful rocket ever built, Starship

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Speaker 2: is a centerpiece of the company's plans to send huge

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Speaker 2: batches of its Starlink Internet satellites into the Earth's orbit

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Speaker 2: and carry humans to the Moon and eventually to Mars.

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Speaker 3: Well, I don't know if we could call this out

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Speaker 3: of this world news, Lisa, Maybe we could. Taylor Swift

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Speaker 3: and her football boyfriend Travis Kelcey had a big announcement.

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Speaker 9: Are you ready for it?

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Speaker 3: Well, fans were certainly ready for it. They announced in

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Speaker 3: a five part Instagram post They're engaged now. The news

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Speaker 3: has online betting markets soaring. Prediction market website cal She

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Speaker 3: says Gambler has made about eighty thousand dollars worth of

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Speaker 3: bets on when the wedding will be In the hours

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Speaker 3: after Taylor Swift's post on polymarket betters are gambling on

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Speaker 3: when the couple might have a baby, if the singer's

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Speaker 3: going to headline the twenty twenty six Super Bowl halftime show.

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Speaker 3: Travis kelce is making some news of his own. He's

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Speaker 3: teaming up with American Eagle on a co branded collection.

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Speaker 2: All Right, Time Now for a look at some of

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

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Speaker 2: the world. For that were joined by Bloomberg's Michael bar

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Speaker 2: Good Morning, Michael.

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Speaker 10: Good Morning, Lee said. New York City and New York

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Speaker 10: State officials are bristling at President Trump's thoughts of deploying

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Speaker 10: National Guard troops to the city to take on crime.

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Speaker 10: Governor Kathy Okle says she spoke with President Trump. Local

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Speaker 10: said she told the President the additional troops are not necessary.

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Speaker 9: I was very gracious to say, I'll tell you what,

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Speaker 9: mister President, if I think i need help from the

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Speaker 9: National Guard beyond what I'm already doing, I knew where

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Speaker 9: to find you.

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Speaker 10: New York Mayor Eric Adams says he does not see

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Speaker 10: a need placed federal troops in the city, saying they

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Speaker 10: are doing an amazing job. Meanwhile, Mayor Adams offered an

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Speaker 10: apology to New Yorkers for the corruption scandals connected to

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Speaker 10: his administration. Adam, speaking to Bloomberg, was asked about a

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Speaker 10: former aid Winnie Greco, giving more than one hundred dollars

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Speaker 10: in a potato chip bag to a reporter for the

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Speaker 10: city at a campaign rally in Harlem. I'm not going

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Speaker 10: to be.

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Speaker 2: Judged by a red envelope in a paper bag.

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Speaker 10: I'm gonna be judged by.

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Speaker 5: How Phil Punch of how to improve the lives of

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Speaker 5: New Yorkers.

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Speaker 9: It was a stupid thing to do.

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Speaker 5: I don't understand the conversation you had with the reporter.

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Speaker 10: I don't have the history of it. It's not something

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Speaker 10: that we would do in our campaign.

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Speaker 11: I made that clear.

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Speaker 5: I don't know what that was about.

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Speaker 10: The damaging news story came as seven people, including Adam's

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Speaker 10: former top aid ingrid Lewis Martin, were indicted on bribery

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Speaker 10: and corruption charges. Adams said he has no plans to

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Speaker 10: drop out of the November election. Polls show he is

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Speaker 10: in fourth place in a five person field, behind Democratic

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Speaker 10: nominee z Around Memdani, former Governor Andrew Cuomo, and Republican

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Speaker 10: Curtis Sleewab. The Israeli military says it's double strike on

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Speaker 10: a guy as a hospital that killed twenty people targeted

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Speaker 10: what it believed was a Hammas surveillance camera. The dead

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Speaker 10: included five journalists. Global News twenty four hours a day

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Speaker 10: and whenever you wanted with the Bloomberg News. Now Michael

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Speaker 10: Barr and this is Bloomberg. Thanks Michael.

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Speaker 3: Time now for our Bloomberg Sports update, and for that

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Speaker 3: we bring in Dan Schwartzman.

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Speaker 11: Thanks Nathan. In Major League Baseball, the Mets beat the

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Speaker 11: Phillies on a Brandon Nimmo walk off Single six to five.

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Speaker 11: The Yankees knock off the Nationals five to one. Elsewhere,

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Speaker 11: the Red Sox shout out the Oriols five nothing. Blue

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Speaker 11: Jay's fault to the Twins seven to five. Brewers slip

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Speaker 11: past the Diamondbacks ninety eight. The Tigers loose to the

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Speaker 11: a seven to six. The Dodgers double up the Red

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Speaker 11: six to three. The Texas Rangers getting some bad news

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Speaker 11: as Nathan eval Duell missed the rest of the regular

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Speaker 11: season due to a rotator cuff strain. On the season,

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Speaker 11: the righty is eleven and three with a one point

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Speaker 11: seven to three ERA. At the US Open, two time

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Speaker 11: Grand Slam winner Cocoa Off struggles to get past Alight

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Speaker 11: tol Mianovich in three sets in the first round. Meanwhile,

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Speaker 11: both Egash Fiantek and Amanda Nisimova advance and trade sets

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Speaker 11: in the Mendroup. Top seed Yonik Center, Alexander Zverev, Alex Demnar,

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Speaker 11: and Tommy Paul all move on to the second round.

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Speaker 11: That's your Bloomberg Sports update.

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Speaker 3: Stay with us more from Bloomberg Daybreak coming up after this.

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Speaker 1: Coast to coast on Bloomberg Radio nationwide on Sirius Exam

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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 3: Good morning, I'm Nathan Hager. President Donald Trump says he

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Speaker 3: is ready for a legal fight over his effort to

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Speaker 3: fire Federal Reserve Governor Lisa Cook, and he's already talking

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Speaker 3: about the influence he hopes to wield over Central Bank policy.

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Speaker 4: We'll have a majority very shortly, So that'll be great

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Speaker 4: once we have a majority, and housing is going to swing,

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Speaker 4: and it's going to be great. People are paying too

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Speaker 4: high an interest rate.

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Speaker 3: That was President Trump speaking at a cabinet meeting. Herd

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Speaker 3: live on Bloomberg Radio and for more. We're joined by

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Speaker 3: Bloomberg's Critty Gupta. So Critty, the President is making it

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Speaker 3: plain he really has that this is about trying to

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Speaker 3: secure a majority on the Fed Board of Governors. But

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Speaker 3: now we're hearing that he's looking for ways to extend

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Speaker 3: his influence beyond the board. What are we hearing.

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Speaker 7: We're hearing that there's a lot of concern about how

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Speaker 7: he can actually do that. Remember, there are seven members

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Speaker 7: of the Federal Reserve Board, but there are other voting

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Speaker 7: members as well, and there's a clear question here of

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Speaker 7: just how much authority he actually has in terms of

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Speaker 7: firing as opposed to replacing, as opposed to influencing policy.

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Speaker 7: And we've had kind of touch points of this throughout

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Speaker 7: history with various presidents, but never to this extent, and

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Speaker 7: never an outright question of to what extent some of

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Speaker 7: the replacements of the Federal Reserve come at the discretion

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Speaker 7: of the president. And the question is they're basically looking

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Speaker 7: at the legality of how they can do that, not

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Speaker 7: just with Lisa Cook, but with others as well. One

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Speaker 7: of the key things that they've named in terms of

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Speaker 7: a potential Cook replacement, if that does indeed go through

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Speaker 7: and is deemed appropriate by the Supreme Court, is the

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Speaker 7: idea of moving around temporary seat. So, for example, Stephen

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Speaker 7: Amia and who is the current nominee to replace Adriana

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Speaker 7: Kugler after her resignation, a thought that Donald Trump had

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Speaker 7: proposed in the last twenty four hours is moving him

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Speaker 7: into Lisa Cook's seat for a longer her longer term

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Speaker 7: until twenty thirty eight. Again, the legality of that given

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Speaker 7: Adriana Cougler's term ends in January, and that temporary position

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Speaker 7: will be there until January is also up for debate,

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Speaker 7: so his team is reported to be looking into these

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Speaker 7: matters and is looking into ways that they can get

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Speaker 7: around what tradition suggests. Yah.

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Speaker 3: We've heard some concern raised by a former FED Vice chair,

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Speaker 3: Lyle Brainerd in an interview on Bloomberg Radio and Television,

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Speaker 3: saying that even regional bank presidents could be worrying about

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Speaker 3: their jobs as well. Could the president go after the

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Speaker 3: regional banks when those positions are decided on by the

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Speaker 3: banks themselves.

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Speaker 7: That's the key question here, and that's the speculation. I

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Speaker 7: love what Ail Brainerd also had said about the way

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Speaker 7: that you can interpret this in the markets, which is

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Speaker 7: that this idea of FED independence's idea of FED credibility

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Speaker 7: even on the regional level, is a crucial one because

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Speaker 7: that's where the market is freaking out on the bond

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Speaker 7: perspective from the long end. And she made the very

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Speaker 7: clear connection that if you undermine that independence, that is

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Speaker 7: going to show up in the very part of the

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Speaker 7: bond market curve that influences housing, which, as we also know,

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Speaker 7: in the last twenty four hours, Donald Trump made it

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Speaker 7: very clear that he is trying to bring down housing prices.

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Speaker 7: So this is a big debate now in the market

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Speaker 7: community of whether or not these moves are actually as

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Speaker 7: effective as he hopes them to be.

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Speaker 3: You mentioned the freak out in the bond market, but

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Speaker 3: you look at the futures contracts this morning, not a

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Speaker 3: whole lot going on. You have to wonder whether investors

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Speaker 3: on that side of the market are just bracing for

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Speaker 3: what we hear from Nvidia later today.

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Speaker 7: Absolutely, it feels like the debate about whether the tech

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Speaker 7: story or the bond market fed story Trump's pun not

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Speaker 7: intended is the bigger story for this week, because not

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Speaker 7: only do we have video, we have PCE data on

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Speaker 7: Friday as well, but and video is really crucial. Look,

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Speaker 7: this is the A plus plus student trying to impress

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Speaker 7: a market that is expecting the world from it. Some

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Speaker 7: some key pieces here are not only going to be

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Speaker 7: where it's getting its revenue from is it the hyperscalers,

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Speaker 7: but also what it's going to say about the development

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Speaker 7: of its Blackwell chip and the development of its H

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Speaker 7: twenty business, specifically to China. Since we had kind of

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Speaker 7: that start and stop over the summer about whether or

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Speaker 7: not they could ultimately export those tips to China with

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Speaker 7: the US government and also making it clear that China,

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Speaker 7: at least from a regulatory authority perspective, has discouraged some

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Speaker 7: of its local use of that chip as well. What

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Speaker 7: that read through is into Nvidia's bottom line that's of

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Speaker 7: key importance. Today.

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