Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here
Speaker 2: are the top stories we're following today.
Speaker 3: Lisa, we begin with the latest developments in President Donald
Speaker 3: Trump's efforts to exert more control over the Federal Reserve.
Speaker 3: Bloomberg News has learned the Trump administration is reviewing options
Speaker 3: for exerting more influence over the fed's twelve regional banks
Speaker 3: that would potentially extend its reach beyond personnel appointments. This
Speaker 3: comes as the President tries to oust FED Governor Lisa
Speaker 3: Cook on allegations of mortgage fraud. If he does, it
Speaker 3: would give the President an opportunity to secure a majority
Speaker 3: on the seven person FED Board of Governors. The President
Speaker 3: has heard here on Bloomberg Radio, defended his decision to
Speaker 3: get rid of Cook at a White House Cabinet meeting.
Speaker 4: She seems to have had an infraction. And she can't
Speaker 4: have an infraction, especially that infraction, because she's in charge of,
Speaker 4: if you think about it, mortgages and people that are
Speaker 4: one hundred percent above board, and it doesn't seem like
Speaker 4: she was.
Speaker 3: That was President Trump speaking at a cabinet meeting. Now
Speaker 3: Fed Governor. Cook's lawyer is vowing to file a lawsuit
Speaker 3: over the President's maneuver to oust her for cause from
Speaker 3: the FED Board of Governors and Nathan.
Speaker 2: Former FED Vice chair Lale Brainerd is suggesting there's a
Speaker 2: real risk of multiple FED district bank presidents getting removed
Speaker 2: from office next year as a result of politically charged
Speaker 2: maneuvering by President Trump. Brainer tells Bloomberg she views the
Speaker 2: president's a tax on Cook in the context of his
Speaker 2: broader pressure on the Central Bank.
Speaker 5: Well, I think the Federal Reserve is an incredibly difficult
Speaker 5: position here, but you have to remember this is not
Speaker 5: about an individual governor. This is really an unprecedented attack
Speaker 5: on the independence of the Federal Reserve as an institution.
Speaker 2: Former FED Vice chairl Brainerd warned that any political push
Speaker 2: to revamp the FOMC would run the risk of stoking
Speaker 2: inflation and longer term interest rates.
Speaker 3: Well, it's turn of markets now, So, because it's the
Speaker 3: report investors have been waiting for all week. After the
Speaker 3: closing bell, Nvidia reports its latest quarterly earning, so we
Speaker 3: get a preview from Bloomberg's Tom Busby.
Speaker 6: And Vidia's Q two results expected to show the boom
Speaker 6: and AI demand continues, Capex continues to grow, and Nvidia
Speaker 6: continues to thrive with its cutting edge Blackwell chips now
Speaker 6: with full production and selling well. One worry for the company, though,
Speaker 6: is China, because of US restrictions on which chips it's
Speaker 6: allowed to sell there, and Beijing urging companies there not
Speaker 6: to use the older, less powerful chips that Nvidia does export.
Speaker 6: Bloomberg Tech reporter Ian King speaking to Bloomberg TV on
Speaker 6: Tuesday about this problem.
Speaker 7: What is the US government going to do next?
Speaker 3: What is the Chinese government going to do next? What
Speaker 3: products will be allowed to be shipped? That the unfortunate
Speaker 3: problem is we don't know.
Speaker 6: Bloomberg consensus though, calls for revenue of forty six point
Speaker 6: two three billion dollars on adjusted ernix per share of
Speaker 6: one dollar in one cent. Tom busby Bloomberg Radio, All.
Speaker 2: Right, thanks Tom, as we wait the Nvidio results. Some
Speaker 2: other stocks making some news this morning, Bloomberg News has
Speaker 2: learned the Justice Department is widening its probe of United Health.
Speaker 2: Sources say the DOJ's criminal division is digging into the
Speaker 2: company's prescription management services, as well as how it reimburses
Speaker 2: its own doctors. The previously unreported areas of the probe
Speaker 2: show the scrutiny is broader than was known and goes
Speaker 2: beyond an inquiry into possible Medicare fraud. Shares of United
Speaker 2: Health are down about two tens percent in early trading.
Speaker 3: All on the flip side, Lisa shares of Cracker Barrel
Speaker 3: are surging more than seven percent. The restaurant chains decided
Speaker 3: to scrap plans for a new logo. Cracker Barrel faced
Speaker 3: a backlash on social media since changing its vintage logo
Speaker 3: by removing an image of a man leaning on a
Speaker 3: barrel while making the lettering more modern. President Trump weighed
Speaker 3: in yesterday. He posted on social media that the brand
Speaker 3: should restore its old logo and apologize logo change did
Speaker 3: lead to a big drop in the share price. Now,
Speaker 3: Cracker Barrel says, quote, we think thank our guests for
Speaker 3: sharing your voices and love for Cracker Barrel. We said
Speaker 3: we would listen, and we have end quote.
Speaker 2: They have all right, Nathan, Now let's get to the
Speaker 2: latest on President Trump's train wars. The US has officially
Speaker 2: slapped fifty percent on India's exports, doubling duties from twenty
Speaker 2: five percent as punishment for buying Russian oil. The change
Speaker 2: took effect at a minute after midnight after Wall Street time.
Speaker 2: Bloomberg Shrewdy, Shriver Stava reports it's the highest tariff rate
Speaker 2: of any the country in Asia.
Speaker 8: US is the largest market export market for India. It's
Speaker 8: the biggest trading partner with India, and Indian exporters sold
Speaker 8: some eighty seven million dollars goods to the US market
Speaker 8: last year. That's two percent of India's GDP. So definitely,
Speaker 8: you know, such high tariffs of course shuts down the
Speaker 8: market for Indian exporters. Now they will have to look
Speaker 8: for other ways, other markets, newer markets to diversify. So
Speaker 8: of course that is going to be a huge impact.
Speaker 2: Bloomberg Shrewdy Shrivestava reports. The higher tariffs will hit labor
Speaker 2: intentsive India like textiles and jewelry the hardest. Electronics and
Speaker 2: pharmaceuticals are exempt for now. That includes Apple's massive new
Speaker 2: factory investments in India and Lisa.
Speaker 3: President Trump is once again warning of serious consequences if
Speaker 3: Russia and Ukraine don't end their war. Here was the
Speaker 3: President again at that cabinet meeting heard live on Bloomberg Radio.
Speaker 4: I want to get it to and it.
Speaker 7: Will not be a world war, but it'll.
Speaker 4: Be an economic war. And an economic war is it's
Speaker 4: going to be bad, and it's going to be bad
Speaker 4: for Russia, and I don't want that.
Speaker 3: The President was asked if he has a timetable for
Speaker 3: Russian President Vladimir Putin to meet with Ukrainian President Vladimir
Speaker 3: Zelenski before he would impose sanctions. The President raised the
Speaker 3: possibility of bilateral talks during his Alaska summit with Putin,
Speaker 3: but more than a week after that gathering, there is
Speaker 3: no meeting scheduled between Putin and Zelenski.
Speaker 2: In other news, Nathan SpaceX is celebrating a successful test
Speaker 2: flight of Starship five.
Speaker 4: Three two one.
Speaker 2: Has heard here live on Bloomberg. The vehicle lifted off
Speaker 2: from SpaceX's South Texas launch facility called Starbase. It's super
Speaker 2: heavy booster, successfully separated from the Starship spacecraft as planned,
Speaker 2: and then splashed down in the Gulf of Mexico. Advertised
Speaker 2: as the largest and most powerful rocket ever built, Starship
Speaker 2: is a centerpiece of the company's plans to send huge
Speaker 2: batches of its Starlink Internet satellites into the Earth's orbit
Speaker 2: and carry humans to the Moon and eventually to Mars.
Speaker 3: Well, I don't know if we could call this out
Speaker 3: of this world news, Lisa, Maybe we could. Taylor Swift
Speaker 3: and her football boyfriend Travis Kelcey had a big announcement.
Speaker 9: Are you ready for it?
Speaker 3: Well, fans were certainly ready for it. They announced in
Speaker 3: a five part Instagram post They're engaged now. The news
Speaker 3: has online betting markets soaring. Prediction market website cal She
Speaker 3: says Gambler has made about eighty thousand dollars worth of
Speaker 3: bets on when the wedding will be In the hours
Speaker 3: after Taylor Swift's post on polymarket betters are gambling on
Speaker 3: when the couple might have a baby, if the singer's
Speaker 3: going to headline the twenty twenty six Super Bowl halftime show.
Speaker 3: Travis kelce is making some news of his own. He's
Speaker 3: teaming up with American Eagle on a co branded collection.
Speaker 2: All Right, Time Now for a look at some of
Speaker 2: the other stories making news in New York and around
Speaker 2: the world. For that were joined by Bloomberg's Michael bar
Speaker 2: Good Morning, Michael.
Speaker 10: Good Morning, Lee said. New York City and New York
Speaker 10: State officials are bristling at President Trump's thoughts of deploying
Speaker 10: National Guard troops to the city to take on crime.
Speaker 10: Governor Kathy Okle says she spoke with President Trump. Local
Speaker 10: said she told the President the additional troops are not necessary.
Speaker 9: I was very gracious to say, I'll tell you what,
Speaker 9: mister President, if I think i need help from the
Speaker 9: National Guard beyond what I'm already doing, I knew where
Speaker 9: to find you.
Speaker 10: New York Mayor Eric Adams says he does not see
Speaker 10: a need placed federal troops in the city, saying they
Speaker 10: are doing an amazing job. Meanwhile, Mayor Adams offered an
Speaker 10: apology to New Yorkers for the corruption scandals connected to
Speaker 10: his administration. Adam, speaking to Bloomberg, was asked about a
Speaker 10: former aid Winnie Greco, giving more than one hundred dollars
Speaker 10: in a potato chip bag to a reporter for the
Speaker 10: city at a campaign rally in Harlem. I'm not going
Speaker 10: to be.
Speaker 2: Judged by a red envelope in a paper bag.
Speaker 10: I'm gonna be judged by.
Speaker 5: How Phil Punch of how to improve the lives of
Speaker 5: New Yorkers.
Speaker 9: It was a stupid thing to do.
Speaker 5: I don't understand the conversation you had with the reporter.
Speaker 10: I don't have the history of it. It's not something
Speaker 10: that we would do in our campaign.
Speaker 11: I made that clear.
Speaker 5: I don't know what that was about.
Speaker 10: The damaging news story came as seven people, including Adam's
Speaker 10: former top aid ingrid Lewis Martin, were indicted on bribery
Speaker 10: and corruption charges. Adams said he has no plans to
Speaker 10: drop out of the November election. Polls show he is
Speaker 10: in fourth place in a five person field, behind Democratic
Speaker 10: nominee z Around Memdani, former Governor Andrew Cuomo, and Republican
Speaker 10: Curtis Sleewab. The Israeli military says it's double strike on
Speaker 10: a guy as a hospital that killed twenty people targeted
Speaker 10: what it believed was a Hammas surveillance camera. The dead
Speaker 10: included five journalists. Global News twenty four hours a day
Speaker 10: and whenever you wanted with the Bloomberg News. Now Michael
Speaker 10: Barr and this is Bloomberg. Thanks Michael.
Speaker 3: Time now for our Bloomberg Sports update, and for that
Speaker 3: we bring in Dan Schwartzman.
Speaker 11: Thanks Nathan. In Major League Baseball, the Mets beat the
Speaker 11: Phillies on a Brandon Nimmo walk off Single six to five.
Speaker 11: The Yankees knock off the Nationals five to one. Elsewhere,
Speaker 11: the Red Sox shout out the Oriols five nothing. Blue
Speaker 11: Jay's fault to the Twins seven to five. Brewers slip
Speaker 11: past the Diamondbacks ninety eight. The Tigers loose to the
Speaker 11: a seven to six. The Dodgers double up the Red
Speaker 11: six to three. The Texas Rangers getting some bad news
Speaker 11: as Nathan eval Duell missed the rest of the regular
Speaker 11: season due to a rotator cuff strain. On the season,
Speaker 11: the righty is eleven and three with a one point
Speaker 11: seven to three ERA. At the US Open, two time
Speaker 11: Grand Slam winner Cocoa Off struggles to get past Alight
Speaker 11: tol Mianovich in three sets in the first round. Meanwhile,
Speaker 11: both Egash Fiantek and Amanda Nisimova advance and trade sets
Speaker 11: in the Mendroup. Top seed Yonik Center, Alexander Zverev, Alex Demnar,
Speaker 11: and Tommy Paul all move on to the second round.
Speaker 11: That's your Bloomberg Sports update.
Speaker 3: Stay with us more from Bloomberg Daybreak coming up after this.
Speaker 1: Coast to coast on Bloomberg Radio nationwide on Sirius Exam
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. President Donald Trump says he
Speaker 3: is ready for a legal fight over his effort to
Speaker 3: fire Federal Reserve Governor Lisa Cook, and he's already talking
Speaker 3: about the influence he hopes to wield over Central Bank policy.
Speaker 4: We'll have a majority very shortly, So that'll be great
Speaker 4: once we have a majority, and housing is going to swing,
Speaker 4: and it's going to be great. People are paying too
Speaker 4: high an interest rate.
Speaker 3: That was President Trump speaking at a cabinet meeting. Herd
Speaker 3: live on Bloomberg Radio and for more. We're joined by
Speaker 3: Bloomberg's Critty Gupta. So Critty, the President is making it
Speaker 3: plain he really has that this is about trying to
Speaker 3: secure a majority on the Fed Board of Governors. But
Speaker 3: now we're hearing that he's looking for ways to extend
Speaker 3: his influence beyond the board. What are we hearing.
Speaker 7: We're hearing that there's a lot of concern about how
Speaker 7: he can actually do that. Remember, there are seven members
Speaker 7: of the Federal Reserve Board, but there are other voting
Speaker 7: members as well, and there's a clear question here of
Speaker 7: just how much authority he actually has in terms of
Speaker 7: firing as opposed to replacing, as opposed to influencing policy.
Speaker 7: And we've had kind of touch points of this throughout
Speaker 7: history with various presidents, but never to this extent, and
Speaker 7: never an outright question of to what extent some of
Speaker 7: the replacements of the Federal Reserve come at the discretion
Speaker 7: of the president. And the question is they're basically looking
Speaker 7: at the legality of how they can do that, not
Speaker 7: just with Lisa Cook, but with others as well. One
Speaker 7: of the key things that they've named in terms of
Speaker 7: a potential Cook replacement, if that does indeed go through
Speaker 7: and is deemed appropriate by the Supreme Court, is the
Speaker 7: idea of moving around temporary seat. So, for example, Stephen
Speaker 7: Amia and who is the current nominee to replace Adriana
Speaker 7: Kugler after her resignation, a thought that Donald Trump had
Speaker 7: proposed in the last twenty four hours is moving him
Speaker 7: into Lisa Cook's seat for a longer her longer term
Speaker 7: until twenty thirty eight. Again, the legality of that given
Speaker 7: Adriana Cougler's term ends in January, and that temporary position
Speaker 7: will be there until January is also up for debate,
Speaker 7: so his team is reported to be looking into these
Speaker 7: matters and is looking into ways that they can get
Speaker 7: around what tradition suggests. Yah.
Speaker 3: We've heard some concern raised by a former FED Vice chair,
Speaker 3: Lyle Brainerd in an interview on Bloomberg Radio and Television,
Speaker 3: saying that even regional bank presidents could be worrying about
Speaker 3: their jobs as well. Could the president go after the
Speaker 3: regional banks when those positions are decided on by the
Speaker 3: banks themselves.
Speaker 7: That's the key question here, and that's the speculation. I
Speaker 7: love what Ail Brainerd also had said about the way
Speaker 7: that you can interpret this in the markets, which is
Speaker 7: that this idea of FED independence's idea of FED credibility
Speaker 7: even on the regional level, is a crucial one because
Speaker 7: that's where the market is freaking out on the bond
Speaker 7: perspective from the long end. And she made the very
Speaker 7: clear connection that if you undermine that independence, that is
Speaker 7: going to show up in the very part of the
Speaker 7: bond market curve that influences housing, which, as we also know,
Speaker 7: in the last twenty four hours, Donald Trump made it
Speaker 7: very clear that he is trying to bring down housing prices.
Speaker 7: So this is a big debate now in the market
Speaker 7: community of whether or not these moves are actually as
Speaker 7: effective as he hopes them to be.
Speaker 3: You mentioned the freak out in the bond market, but
Speaker 3: you look at the futures contracts this morning, not a
Speaker 3: whole lot going on. You have to wonder whether investors
Speaker 3: on that side of the market are just bracing for
Speaker 3: what we hear from Nvidia later today.
Speaker 7: Absolutely, it feels like the debate about whether the tech
Speaker 7: story or the bond market fed story Trump's pun not
Speaker 7: intended is the bigger story for this week, because not
Speaker 7: only do we have video, we have PCE data on
Speaker 7: Friday as well, but and video is really crucial. Look,
Speaker 7: this is the A plus plus student trying to impress
Speaker 7: a market that is expecting the world from it. Some
Speaker 7: some key pieces here are not only going to be
Speaker 7: where it's getting its revenue from is it the hyperscalers,
Speaker 7: but also what it's going to say about the development
Speaker 7: of its Blackwell chip and the development of its H
Speaker 7: twenty business, specifically to China. Since we had kind of
Speaker 7: that start and stop over the summer about whether or
Speaker 7: not they could ultimately export those tips to China with
Speaker 7: the US government and also making it clear that China,
Speaker 7: at least from a regulatory authority perspective, has discouraged some
Speaker 7: of its local use of that chip as well. What
Speaker 7: that read through is into Nvidia's bottom line that's of
Speaker 7: key importance. Today.
Speaker 3: This is Bloomberg Daybreak, your morning podcast on the stories
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Speaker 2: I'm Lisa Matteo. Join us again tomorrow morning. For all
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