WEBVTT - Trump May Extend Influence to Fed Banks; SpaceX Deploys Satellites in Space

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

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

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

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<v Speaker 3>Lisa, we begin with the latest developments in President Donald

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<v Speaker 3>Trump's efforts to exert more control over the Federal Reserve.

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<v Speaker 3>Bloomberg News has learned the Trump administration is reviewing options

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<v Speaker 3>for exerting more influence over the fed's twelve regional banks

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<v Speaker 3>that would potentially extend its reach beyond personnel appointments. This

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<v Speaker 3>comes as the President tries to oust FED Governor Lisa

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<v Speaker 3>Cook on allegations of mortgage fraud. If he does, it

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<v Speaker 3>would give the President an opportunity to secure a majority

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<v Speaker 3>on the seven person FED Board of Governors. The President

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<v Speaker 3>has heard here on Bloomberg Radio, defended his decision to

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<v Speaker 3>get rid of Cook at a White House Cabinet meeting.

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<v Speaker 4>She seems to have had an infraction. And she can't

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<v Speaker 4>have an infraction, especially that infraction, because she's in charge of,

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<v Speaker 4>if you think about it, mortgages and people that are

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<v Speaker 4>one hundred percent above board, and it doesn't seem like

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<v Speaker 4>she was.

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<v Speaker 3>That was President Trump speaking at a cabinet meeting. Now

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<v Speaker 3>Fed Governor. Cook's lawyer is vowing to file a lawsuit

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<v Speaker 3>over the President's maneuver to oust her for cause from

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<v Speaker 3>the FED Board of Governors and Nathan.

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<v Speaker 2>Former FED Vice chair Lale Brainerd is suggesting there's a

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<v Speaker 2>real risk of multiple FED district bank presidents getting removed

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<v Speaker 2>from office next year as a result of politically charged

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<v Speaker 2>maneuvering by President Trump. Brainer tells Bloomberg she views the

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<v Speaker 2>president's a tax on Cook in the context of his

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<v Speaker 2>broader pressure on the Central Bank.

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<v Speaker 5>Well, I think the Federal Reserve is an incredibly difficult

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<v Speaker 5>position here, but you have to remember this is not

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<v Speaker 5>about an individual governor. This is really an unprecedented attack

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<v Speaker 5>on the independence of the Federal Reserve as an institution.

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<v Speaker 2>Former FED Vice chairl Brainerd warned that any political push

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<v Speaker 2>to revamp the FOMC would run the risk of stoking

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<v Speaker 2>inflation and longer term interest rates.

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<v Speaker 3>Well, it's turn of markets now, So, because it's the

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<v Speaker 3>report investors have been waiting for all week. After the

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<v Speaker 3>closing bell, Nvidia reports its latest quarterly earning, so we

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<v Speaker 3>get a preview from Bloomberg's Tom Busby.

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<v Speaker 6>And Vidia's Q two results expected to show the boom

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<v Speaker 6>and AI demand continues, Capex continues to grow, and Nvidia

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<v Speaker 6>continues to thrive with its cutting edge Blackwell chips now

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

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<v Speaker 6>is China, because of US restrictions on which chips it's

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<v Speaker 6>allowed to sell there, and Beijing urging companies there not

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<v Speaker 6>to use the older, less powerful chips that Nvidia does export.

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<v Speaker 6>Bloomberg Tech reporter Ian King speaking to Bloomberg TV on

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<v Speaker 6>Tuesday about this problem.

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<v Speaker 7>What is the US government going to do next?

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<v Speaker 3>What is the Chinese government going to do next? What

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<v Speaker 3>products will be allowed to be shipped? That the unfortunate

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<v Speaker 3>problem is we don't know.

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<v Speaker 6>Bloomberg consensus though, calls for revenue of forty six point

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<v Speaker 6>two three billion dollars on adjusted ernix per share of

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<v Speaker 6>one dollar in one cent. Tom busby Bloomberg Radio, All.

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<v Speaker 2>Right, thanks Tom, as we wait the Nvidio results. Some

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<v Speaker 2>other stocks making some news this morning, Bloomberg News has

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<v Speaker 2>learned the Justice Department is widening its probe of United Health.

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<v Speaker 2>Sources say the DOJ's criminal division is digging into the

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<v Speaker 2>company's prescription management services, as well as how it reimburses

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<v Speaker 2>its own doctors. The previously unreported areas of the probe

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<v Speaker 2>show the scrutiny is broader than was known and goes

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<v Speaker 2>beyond an inquiry into possible Medicare fraud. Shares of United

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<v Speaker 2>Health are down about two tens percent in early trading.

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<v Speaker 3>All on the flip side, Lisa shares of Cracker Barrel

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<v Speaker 3>are surging more than seven percent. The restaurant chains decided

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<v Speaker 3>to scrap plans for a new logo. Cracker Barrel faced

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<v Speaker 3>a backlash on social media since changing its vintage logo

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<v Speaker 3>by removing an image of a man leaning on a

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<v Speaker 3>barrel while making the lettering more modern. President Trump weighed

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<v Speaker 3>in yesterday. He posted on social media that the brand

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<v Speaker 3>should restore its old logo and apologize logo change did

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<v Speaker 3>lead to a big drop in the share price. Now,

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<v Speaker 3>Cracker Barrel says, quote, we think thank our guests for

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<v Speaker 3>sharing your voices and love for Cracker Barrel. We said

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<v Speaker 3>we would listen, and we have end quote.

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<v Speaker 2>They have all right, Nathan, Now let's get to the

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<v Speaker 2>latest on President Trump's train wars. The US has officially

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<v Speaker 2>slapped fifty percent on India's exports, doubling duties from twenty

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<v Speaker 2>five percent as punishment for buying Russian oil. The change

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<v Speaker 2>took effect at a minute after midnight after Wall Street time.

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<v Speaker 2>Bloomberg Shrewdy, Shriver Stava reports it's the highest tariff rate

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<v Speaker 2>of any the country in Asia.

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<v Speaker 8>US is the largest market export market for India. It's

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<v Speaker 8>the biggest trading partner with India, and Indian exporters sold

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<v Speaker 8>some eighty seven million dollars goods to the US market

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

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<v Speaker 8>you know, such high tariffs of course shuts down the

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<v Speaker 8>market for Indian exporters. Now they will have to look

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<v Speaker 8>for other ways, other markets, newer markets to diversify. So

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<v Speaker 8>of course that is going to be a huge impact.

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<v Speaker 2>Bloomberg Shrewdy Shrivestava reports. The higher tariffs will hit labor

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<v Speaker 2>intentsive India like textiles and jewelry the hardest. Electronics and

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<v Speaker 2>pharmaceuticals are exempt for now. That includes Apple's massive new

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<v Speaker 2>factory investments in India and Lisa.

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<v Speaker 3>President Trump is once again warning of serious consequences if

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<v Speaker 3>Russia and Ukraine don't end their war. Here was the

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<v Speaker 3>President again at that cabinet meeting heard live on Bloomberg Radio.

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<v Speaker 4>I want to get it to and it.

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<v Speaker 7>Will not be a world war, but it'll.

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<v Speaker 4>Be an economic war. And an economic war is it's

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<v Speaker 4>going to be bad, and it's going to be bad

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<v Speaker 4>for Russia, and I don't want that.

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<v Speaker 3>The President was asked if he has a timetable for

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<v Speaker 3>Russian President Vladimir Putin to meet with Ukrainian President Vladimir

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<v Speaker 3>Zelenski before he would impose sanctions. The President raised the

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<v Speaker 3>possibility of bilateral talks during his Alaska summit with Putin,

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<v Speaker 3>but more than a week after that gathering, there is

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<v Speaker 3>no meeting scheduled between Putin and Zelenski.

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<v Speaker 2>In other news, Nathan SpaceX is celebrating a successful test

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<v Speaker 2>flight of Starship five.

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<v Speaker 4>Three two one.

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<v Speaker 2>Has heard here live on Bloomberg. The vehicle lifted off

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<v Speaker 2>from SpaceX's South Texas launch facility called Starbase. It's super

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<v Speaker 2>heavy booster, successfully separated from the Starship spacecraft as planned,

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<v Speaker 2>and then splashed down in the Gulf of Mexico. Advertised

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<v Speaker 2>as the largest and most powerful rocket ever built, Starship

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<v Speaker 2>is a centerpiece of the company's plans to send huge

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<v Speaker 2>batches of its Starlink Internet satellites into the Earth's orbit

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<v Speaker 2>and carry humans to the Moon and eventually to Mars.

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<v Speaker 3>Well, I don't know if we could call this out

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<v Speaker 3>of this world news, Lisa, Maybe we could. Taylor Swift

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<v Speaker 3>and her football boyfriend Travis Kelcey had a big announcement.

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<v Speaker 9>Are you ready for it?

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<v Speaker 3>Well, fans were certainly ready for it. They announced in

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<v Speaker 3>a five part Instagram post They're engaged now. The news

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<v Speaker 3>has online betting markets soaring. Prediction market website cal She

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<v Speaker 3>says Gambler has made about eighty thousand dollars worth of

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<v Speaker 3>bets on when the wedding will be In the hours

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<v Speaker 3>after Taylor Swift's post on polymarket betters are gambling on

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<v Speaker 3>when the couple might have a baby, if the singer's

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<v Speaker 3>going to headline the twenty twenty six Super Bowl halftime show.

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<v Speaker 3>Travis kelce is making some news of his own. He's

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<v Speaker 3>teaming up with American Eagle on a co branded collection.

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<v Speaker 2>All Right, Time Now for a look at some of

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<v Speaker 2>the other stories making news in New York and around

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<v Speaker 2>the world. For that were joined by Bloomberg's Michael bar

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<v Speaker 2>Good Morning, Michael.

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<v Speaker 10>Good Morning, Lee said. New York City and New York

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<v Speaker 10>State officials are bristling at President Trump's thoughts of deploying

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<v Speaker 10>National Guard troops to the city to take on crime.

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<v Speaker 10>Governor Kathy Okle says she spoke with President Trump. Local

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<v Speaker 10>said she told the President the additional troops are not necessary.

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<v Speaker 9>I was very gracious to say, I'll tell you what,

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<v Speaker 9>mister President, if I think i need help from the

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<v Speaker 9>National Guard beyond what I'm already doing, I knew where

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<v Speaker 9>to find you.

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<v Speaker 10>New York Mayor Eric Adams says he does not see

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<v Speaker 10>a need placed federal troops in the city, saying they

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<v Speaker 10>are doing an amazing job. Meanwhile, Mayor Adams offered an

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<v Speaker 10>apology to New Yorkers for the corruption scandals connected to

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<v Speaker 10>his administration. Adam, speaking to Bloomberg, was asked about a

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<v Speaker 10>former aid Winnie Greco, giving more than one hundred dollars

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<v Speaker 10>in a potato chip bag to a reporter for the

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<v Speaker 10>city at a campaign rally in Harlem. I'm not going

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<v Speaker 10>to be.

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<v Speaker 2>Judged by a red envelope in a paper bag.

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<v Speaker 10>I'm gonna be judged by.

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<v Speaker 5>How Phil Punch of how to improve the lives of

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<v Speaker 5>New Yorkers.

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<v Speaker 9>It was a stupid thing to do.

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<v Speaker 5>I don't understand the conversation you had with the reporter.

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

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<v Speaker 10>that we would do in our campaign.

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<v Speaker 11>I made that clear.

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<v Speaker 5>I don't know what that was about.

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<v Speaker 10>The damaging news story came as seven people, including Adam's

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<v Speaker 10>former top aid ingrid Lewis Martin, were indicted on bribery

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<v Speaker 10>and corruption charges. Adams said he has no plans to

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<v Speaker 10>drop out of the November election. Polls show he is

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<v Speaker 10>in fourth place in a five person field, behind Democratic

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<v Speaker 10>nominee z Around Memdani, former Governor Andrew Cuomo, and Republican

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<v Speaker 10>Curtis Sleewab. The Israeli military says it's double strike on

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<v Speaker 10>a guy as a hospital that killed twenty people targeted

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<v Speaker 10>what it believed was a Hammas surveillance camera. The dead

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<v Speaker 10>included five journalists. Global News twenty four hours a day

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<v Speaker 10>and whenever you wanted with the Bloomberg News. Now Michael

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<v Speaker 10>Barr and this is Bloomberg. Thanks Michael.

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<v Speaker 3>Time now for our Bloomberg Sports update, and for that

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<v Speaker 3>we bring in Dan Schwartzman.

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<v Speaker 11>Thanks Nathan. In Major League Baseball, the Mets beat the

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<v Speaker 11>Phillies on a Brandon Nimmo walk off Single six to five.

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<v Speaker 11>The Yankees knock off the Nationals five to one. Elsewhere,

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<v Speaker 11>the Red Sox shout out the Oriols five nothing. Blue

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<v Speaker 11>Jay's fault to the Twins seven to five. Brewers slip

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<v Speaker 11>past the Diamondbacks ninety eight. The Tigers loose to the

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<v Speaker 11>a seven to six. The Dodgers double up the Red

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<v Speaker 11>six to three. The Texas Rangers getting some bad news

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<v Speaker 11>as Nathan eval Duell missed the rest of the regular

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<v Speaker 11>season due to a rotator cuff strain. On the season,

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<v Speaker 11>the righty is eleven and three with a one point

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<v Speaker 11>seven to three ERA. At the US Open, two time

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<v Speaker 11>Grand Slam winner Cocoa Off struggles to get past Alight

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<v Speaker 11>tol Mianovich in three sets in the first round. Meanwhile,

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<v Speaker 11>both Egash Fiantek and Amanda Nisimova advance and trade sets

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<v Speaker 11>in the Mendroup. Top seed Yonik Center, Alexander Zverev, Alex Demnar,

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<v Speaker 11>and Tommy Paul all move on to the second round.

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<v Speaker 11>That's your Bloomberg Sports update.

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<v Speaker 3>Stay with us more from Bloomberg Daybreak coming up after this.

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

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager. President Donald Trump says he

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<v Speaker 3>is ready for a legal fight over his effort to

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<v Speaker 3>fire Federal Reserve Governor Lisa Cook, and he's already talking

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<v Speaker 3>about the influence he hopes to wield over Central Bank policy.

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<v Speaker 4>We'll have a majority very shortly, So that'll be great

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<v Speaker 4>once we have a majority, and housing is going to swing,

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<v Speaker 4>and it's going to be great. People are paying too

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<v Speaker 4>high an interest rate.

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<v Speaker 3>That was President Trump speaking at a cabinet meeting. Herd

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<v Speaker 3>live on Bloomberg Radio and for more. We're joined by

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<v Speaker 3>Bloomberg's Critty Gupta. So Critty, the President is making it

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<v Speaker 3>plain he really has that this is about trying to

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<v Speaker 3>secure a majority on the Fed Board of Governors. But

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<v Speaker 3>now we're hearing that he's looking for ways to extend

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<v Speaker 3>his influence beyond the board. What are we hearing.

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<v Speaker 7>We're hearing that there's a lot of concern about how

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<v Speaker 7>he can actually do that. Remember, there are seven members

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<v Speaker 7>of the Federal Reserve Board, but there are other voting

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<v Speaker 7>members as well, and there's a clear question here of

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<v Speaker 7>just how much authority he actually has in terms of

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<v Speaker 7>firing as opposed to replacing, as opposed to influencing policy.

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<v Speaker 7>And we've had kind of touch points of this throughout

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<v Speaker 7>history with various presidents, but never to this extent, and

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<v Speaker 7>never an outright question of to what extent some of

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<v Speaker 7>the replacements of the Federal Reserve come at the discretion

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<v Speaker 7>of the president. And the question is they're basically looking

0:11:51.720 --> 0:11:54.000
<v Speaker 7>at the legality of how they can do that, not

0:11:54.160 --> 0:11:56.480
<v Speaker 7>just with Lisa Cook, but with others as well. One

0:11:56.520 --> 0:11:58.920
<v Speaker 7>of the key things that they've named in terms of

0:11:58.960 --> 0:12:02.640
<v Speaker 7>a potential Cook replacement, if that does indeed go through

0:12:02.640 --> 0:12:05.320
<v Speaker 7>and is deemed appropriate by the Supreme Court, is the

0:12:05.400 --> 0:12:09.520
<v Speaker 7>idea of moving around temporary seat. So, for example, Stephen

0:12:09.600 --> 0:12:13.160
<v Speaker 7>Amia and who is the current nominee to replace Adriana

0:12:13.240 --> 0:12:16.880
<v Speaker 7>Kugler after her resignation, a thought that Donald Trump had

0:12:16.920 --> 0:12:19.480
<v Speaker 7>proposed in the last twenty four hours is moving him

0:12:19.840 --> 0:12:22.400
<v Speaker 7>into Lisa Cook's seat for a longer her longer term

0:12:22.480 --> 0:12:25.640
<v Speaker 7>until twenty thirty eight. Again, the legality of that given

0:12:26.000 --> 0:12:29.520
<v Speaker 7>Adriana Cougler's term ends in January, and that temporary position

0:12:30.040 --> 0:12:32.840
<v Speaker 7>will be there until January is also up for debate,

0:12:32.920 --> 0:12:35.839
<v Speaker 7>so his team is reported to be looking into these

0:12:35.880 --> 0:12:39.240
<v Speaker 7>matters and is looking into ways that they can get

0:12:39.240 --> 0:12:41.480
<v Speaker 7>around what tradition suggests. Yah.

0:12:41.520 --> 0:12:45.240
<v Speaker 3>We've heard some concern raised by a former FED Vice chair,

0:12:45.360 --> 0:12:47.840
<v Speaker 3>Lyle Brainerd in an interview on Bloomberg Radio and Television,

0:12:47.880 --> 0:12:51.200
<v Speaker 3>saying that even regional bank presidents could be worrying about

0:12:51.240 --> 0:12:54.360
<v Speaker 3>their jobs as well. Could the president go after the

0:12:54.400 --> 0:12:58.320
<v Speaker 3>regional banks when those positions are decided on by the

0:12:58.320 --> 0:12:59.199
<v Speaker 3>banks themselves.

0:13:00.200 --> 0:13:02.280
<v Speaker 7>That's the key question here, and that's the speculation. I

0:13:02.320 --> 0:13:04.920
<v Speaker 7>love what Ail Brainerd also had said about the way

0:13:05.160 --> 0:13:07.520
<v Speaker 7>that you can interpret this in the markets, which is

0:13:07.520 --> 0:13:11.040
<v Speaker 7>that this idea of FED independence's idea of FED credibility

0:13:11.240 --> 0:13:14.440
<v Speaker 7>even on the regional level, is a crucial one because

0:13:14.480 --> 0:13:17.079
<v Speaker 7>that's where the market is freaking out on the bond

0:13:17.120 --> 0:13:19.720
<v Speaker 7>perspective from the long end. And she made the very

0:13:19.760 --> 0:13:22.760
<v Speaker 7>clear connection that if you undermine that independence, that is

0:13:22.760 --> 0:13:25.640
<v Speaker 7>going to show up in the very part of the

0:13:25.679 --> 0:13:29.160
<v Speaker 7>bond market curve that influences housing, which, as we also know,

0:13:29.200 --> 0:13:31.000
<v Speaker 7>in the last twenty four hours, Donald Trump made it

0:13:31.120 --> 0:13:34.080
<v Speaker 7>very clear that he is trying to bring down housing prices.

0:13:34.320 --> 0:13:36.200
<v Speaker 7>So this is a big debate now in the market

0:13:36.200 --> 0:13:39.280
<v Speaker 7>community of whether or not these moves are actually as

0:13:39.320 --> 0:13:40.600
<v Speaker 7>effective as he hopes them to be.

0:13:40.880 --> 0:13:42.720
<v Speaker 3>You mentioned the freak out in the bond market, but

0:13:42.760 --> 0:13:45.320
<v Speaker 3>you look at the futures contracts this morning, not a

0:13:45.320 --> 0:13:48.359
<v Speaker 3>whole lot going on. You have to wonder whether investors

0:13:48.400 --> 0:13:51.080
<v Speaker 3>on that side of the market are just bracing for

0:13:51.160 --> 0:13:53.080
<v Speaker 3>what we hear from Nvidia later today.

0:13:53.520 --> 0:13:57.320
<v Speaker 7>Absolutely, it feels like the debate about whether the tech

0:13:57.440 --> 0:14:01.480
<v Speaker 7>story or the bond market fed story Trump's pun not

0:14:01.600 --> 0:14:04.240
<v Speaker 7>intended is the bigger story for this week, because not

0:14:04.280 --> 0:14:06.719
<v Speaker 7>only do we have video, we have PCE data on

0:14:06.760 --> 0:14:08.800
<v Speaker 7>Friday as well, but and video is really crucial. Look,

0:14:08.840 --> 0:14:11.960
<v Speaker 7>this is the A plus plus student trying to impress

0:14:12.400 --> 0:14:15.680
<v Speaker 7>a market that is expecting the world from it. Some

0:14:15.679 --> 0:14:17.560
<v Speaker 7>some key pieces here are not only going to be

0:14:17.880 --> 0:14:20.239
<v Speaker 7>where it's getting its revenue from is it the hyperscalers,

0:14:20.280 --> 0:14:22.640
<v Speaker 7>but also what it's going to say about the development

0:14:22.680 --> 0:14:25.800
<v Speaker 7>of its Blackwell chip and the development of its H

0:14:25.920 --> 0:14:29.240
<v Speaker 7>twenty business, specifically to China. Since we had kind of

0:14:29.240 --> 0:14:31.400
<v Speaker 7>that start and stop over the summer about whether or

0:14:31.440 --> 0:14:34.120
<v Speaker 7>not they could ultimately export those tips to China with

0:14:34.200 --> 0:14:36.640
<v Speaker 7>the US government and also making it clear that China,

0:14:36.800 --> 0:14:40.120
<v Speaker 7>at least from a regulatory authority perspective, has discouraged some

0:14:40.200 --> 0:14:42.600
<v Speaker 7>of its local use of that chip as well. What

0:14:42.640 --> 0:14:46.240
<v Speaker 7>that read through is into Nvidia's bottom line that's of

0:14:46.640 --> 0:14:47.800
<v Speaker 7>key importance. Today.

0:14:49.880 --> 0:14:53.320
<v Speaker 3>This is Bloomberg Daybreak, your morning podcast on the stories

0:14:53.360 --> 0:14:56.360
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