WEBVTT - Judge Rules on Fed's Lisa Cook; Fallout from Israel Attack in Qatar

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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 Karen Moscow. Here

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

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<v Speaker 3>Can we begin this morning with a key court ruling

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<v Speaker 3>involving Federal Reserve Governor Lisa Cook. The judge has temporarily

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<v Speaker 3>blocked President Trump's effort to remove her from her position

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<v Speaker 3>at the FED. Bloomberg Markets reporter Valerie Titel says the

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<v Speaker 3>decision allows Cook to remain in her post while she

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<v Speaker 3>challenges the White House's attempt to oust her over allegations

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<v Speaker 3>of mortgage fraud, which Cook says are politically motivated.

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<v Speaker 4>This is a really important case to follow because this

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<v Speaker 4>is the first time a president has sought to remove

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<v Speaker 4>someone at the FED, and given the law written into

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<v Speaker 4>the Federal Reserve Act, the president can remove somebody for cause,

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<v Speaker 4>but it's very vague on what cause actually entails, and

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<v Speaker 4>this ruling really can have lasting effects on clarifying what

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<v Speaker 4>is justified as called in this scenario.

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<v Speaker 3>Bloomberg's Valery Titesell says the judge concluded the alleged misconduct

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<v Speaker 3>likely does not amount to cause for her removal.

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<v Speaker 2>Let's turn to the Middle East, now Nathan. Israel conducted

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<v Speaker 2>an unprecedented strike against senior Hamas leaders in the Katari

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<v Speaker 2>capital of Doha, escalating an already tense standoff between the

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<v Speaker 2>country and Arab nations over the war in Gaza. The

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<v Speaker 2>move drew criticism from the Trump administration, saying the bombing

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<v Speaker 2>did not advance Israeli or American goals in trying to

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<v Speaker 2>bring an end to the Middle East conflict, and the

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<v Speaker 2>President says he was not given advanced notice of the attack.

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<v Speaker 5>I was very unhappy about it, very unhappy about every aspect,

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<v Speaker 5>and we got to get the hostages.

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<v Speaker 6>Back, but I was very unhappy about the way that

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<v Speaker 6>went down.

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<v Speaker 3>Now, so you were caught by surprise.

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<v Speaker 5>I'm never surprised by anything, especially when it comes to

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<v Speaker 5>the Middle East.

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<v Speaker 2>President Trump added that he spoke with both Israel Prime

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<v Speaker 2>Minister Benjamin att and Yahoo and Katari leaders after the

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<v Speaker 2>strike and assured Cutter that such an attack would not

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<v Speaker 2>happen again. HAMA said five of its members were killed

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<v Speaker 2>in the attack, though its May negotiating delegation survived.

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<v Speaker 3>And Karen Katar is condemning this strike, calling it a

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<v Speaker 3>flagrant violation of international law. It says it will not

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<v Speaker 3>tolerate this reckless Israeli behavior and it's continued tampering with

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<v Speaker 3>regional security. William Roebuck as executive vice president at the

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<v Speaker 3>Arab Golf States Institute. He says the attack threatens the

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<v Speaker 3>ceasefire deal that President Trump proposed.

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<v Speaker 6>I don't see prospects for the negotiations to start up again.

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<v Speaker 6>And I also on the Israeli side, just assessing the

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<v Speaker 6>way they have responded to the negotiation proposal, I don't

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<v Speaker 6>see a lot of strong interest on their side yet

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<v Speaker 6>in that proposal from President Trump.

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<v Speaker 3>William Roebuck of the Arab Gulf States Institute Bloomberg Economic

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<v Speaker 3>says while crude oil futures jumped after the attack, oil

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<v Speaker 3>prices are unlikely to move persistently. Checking oil prices now,

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<v Speaker 3>they are moving higher. West Texas Intermediate It's up one percent,

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<v Speaker 3>trading as sixty three dollars twenty eight cents per barrel.

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<v Speaker 3>Brent is up nine tenths of one percent at sixty

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<v Speaker 3>seven dollars two cents and.

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<v Speaker 2>Nathan mahamore geopolitical news this morning related to the war

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<v Speaker 2>in Ukraine. Poland has shot down drones that crossed into

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<v Speaker 2>its territory during a Russian airstrike on Ukraine. The Polish

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<v Speaker 2>military calling it an act of aggression, and the country's

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<v Speaker 2>premiere is asking NATO allies for support. Bloomberg Daybreak Europe

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<v Speaker 2>anchor Stephen Carrol is in Brussels and joins US Live

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<v Speaker 2>with the details.

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<v Speaker 7>Good morning, Stephen, Good morning, Karen and Nathan. Poland's Prime Minister,

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<v Speaker 7>Donald Tusk, says his country's airspace was violated by a

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<v Speaker 7>huge number of Russian drones in the early hours of

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<v Speaker 7>this morning. Airports were closed for several hours, while citizens

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<v Speaker 7>in the east were told to stay indoors. It's the

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<v Speaker 7>first time the NATO member has shot down military aircraft

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<v Speaker 7>that have strayed into its airspace since the start of

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<v Speaker 7>Russia's full scale invasion of Ukraine. The EU's Foreign affair

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<v Speaker 7>chief Kaya Kalas says the incursion appears to be intentional.

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<v Speaker 7>The Polish Prime minister has asked NATO to invoke Article

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<v Speaker 7>four of its tracy, which triggers consultations on a military

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<v Speaker 7>response in Brussels. Stephen Carol Bloomberg Radio.

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<v Speaker 3>Okay, Stephen, thank you. This news from Poland comes as

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<v Speaker 3>President Trump has told European officials He's willing to impose

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<v Speaker 3>new tariffs on India and China to pressure Russian President

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<v Speaker 3>Vladimir Putin to negotiate with Ukraine, but only if EU

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<v Speaker 3>nations do so as well. Other potential measures discussed include

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<v Speaker 3>further sanctions on Russia's shadow fleet of oil tankers and

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<v Speaker 3>restrictions on its banks and major oil companies.

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<v Speaker 2>And there's more tariff news, Nathan. The Supreme Court will

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<v Speaker 2>de shigne whether the bulk of President Trump's tariffs are legal,

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<v Speaker 2>with arguments to be heard in the first week of November.

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<v Speaker 2>The tariffs remain in place for now, but a decision

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<v Speaker 2>striking down the tariffs could cut the current average US

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<v Speaker 2>effective tariff rate and force the US to refund tens

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<v Speaker 2>of billions of dollars and potentially up and preliminary trade deals.

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<v Speaker 3>I want to turn now, Karen to a major political

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<v Speaker 3>race we're following in Boston, and expected one on one

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<v Speaker 3>showdown for Boston Mayor Michelle Wu and Challenger Josh Craft

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<v Speaker 3>is officially underway. Wu has not a sweeping victory in

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<v Speaker 3>the city's preliminary election, with one hundred percent of precincts reporting,

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<v Speaker 3>WU has drawn seventy one point six percent support to

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<v Speaker 3>Josh Craft's twenty three point three percent. The remaining five

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<v Speaker 3>percent of the vote went to activist Domingos de Rosa

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<v Speaker 3>and former police officer Robert Capucci. The election is scheduled

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<v Speaker 3>for Tuesday, November fourth.

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<v Speaker 2>And looking at other elections across the country, here Nathan

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<v Speaker 2>a Democratic James Walkinshaw won the special election for Virginia's

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<v Speaker 2>eleventh district, holding on to the Democratic leaning seat in

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<v Speaker 2>the suburbs of Washington, DC. Walkinshaw will fill the seat

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<v Speaker 2>vacated in May by the death of Representative Jerry Connolly,

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<v Speaker 2>and Walkinshaw's win will narrow the Republican majority in the House,

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<v Speaker 2>where Speaker Mike Johnson will now only be able to

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<v Speaker 2>afford two defections from his party to still pass legislation.

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<v Speaker 3>Back to Wall Street now, Karen Traders are going to

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<v Speaker 3>get more ECON data today. The Producer Price Index for

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<v Speaker 3>August is do out at eight thirty am Wall Street time.

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<v Speaker 3>We get a preview now from Bloomberg's Michael McKee.

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<v Speaker 5>If anything could derail a FED rate cut, it would

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<v Speaker 5>be an August jump in inflation that's not expected when

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<v Speaker 5>the government releases the month's producer price index. The consensus

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<v Speaker 5>monthly change is just a third the size of July's

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<v Speaker 5>increase on an annual basis. Headline wholesale inflation is forecast unchanged,

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<v Speaker 5>while the core rate actually drops, a surprise, of course,

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<v Speaker 5>would increase market angst, although tomorrow's consumer price index will

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<v Speaker 5>have greater impact. What's likely to matter most today is

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<v Speaker 5>where we might see tariff induced inflation and how much.

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<v Speaker 5>Michael McKee, Bloomberg Radio.

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<v Speaker 2>All right, Michael, thank you, returned to Big Tech Now

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<v Speaker 2>and a look at Oracle, which is surging this morning,

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<v Speaker 2>with shares jumping to a record after the company gave

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<v Speaker 2>an aggressive outlook for its cloud business, stunning Wall Street

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<v Speaker 2>and galvanizing hopes that the post chat GPT global AI

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<v Speaker 2>infrastructure buildout is accelera rating Oracle's cloud infrastructure revenue increase

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<v Speaker 2>fifty five percent to three point three billion dollars, with

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<v Speaker 2>the company signing four multi billion dollar contracts with three

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<v Speaker 2>different customers in the quarter, and it's expecting to sign

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<v Speaker 2>up several additional customers in the coming months. And looking

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<v Speaker 2>at Oracle shares this morning up almost twenty nine percent.

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<v Speaker 3>Yeah, Karen, We're also keeping on Apple shares this morning

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<v Speaker 3>they're down a half percent in the pre market. After that,

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<v Speaker 3>tech Giant introduced a fresh range of products, including enhanced AirPods, watches,

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<v Speaker 3>and the thinnest ever iPhone, along with new pro versions

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<v Speaker 3>of the smart device. Dan Ives, global head of tech

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<v Speaker 3>Research and Webush Security, says the updates should move the

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<v Speaker 3>needle for Apple.

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<v Speaker 8>There's nothing here that makes you think that this is

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<v Speaker 8>going to be the game change that everyone's been waiting for.

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<v Speaker 8>But I do believe given the install base, given some

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<v Speaker 8>of the tweaks here, and ultimately on the on sort

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<v Speaker 8>of the second half of this upgrade cycle, you will

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<v Speaker 8>have an AI riven Echoesism. I believe it will be

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<v Speaker 8>Google Gemini. This could be a sneaky upgrade cycle that

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<v Speaker 8>I think surprises investors on the upside.

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<v Speaker 3>And what Bush's dan Ives adds, the iPhone seventeen air

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<v Speaker 3>drew the loudest cheers at the product launch in Cooper Tino.

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<v Speaker 2>Time now for a look at some of the o

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<v Speaker 2>their stories making news in New York and around the world,

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<v Speaker 2>and for that we're joined by Bloomberg's Michael Barr.

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<v Speaker 9>Michael, good morning, Good morning, Karen. That's not my signature

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<v Speaker 9>that denial from President Trump Tuesday, when he was asked

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<v Speaker 9>about a letter he allegedly signed for Jeffrey Epstein's fiftieth

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<v Speaker 9>birthday book in two thousand and three. Democrats on the

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<v Speaker 9>House Oversight Committee released an image of the message Monday.

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<v Speaker 9>It includes a message of signature at the bottom that

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<v Speaker 9>looks like the president's and an outline of a woman's figure.

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<v Speaker 9>President Trump spoke to the media before dinner in Washington.

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<v Speaker 2>It's nonsense, and frankly, you're wasting your time.

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<v Speaker 5>All you do is trying to get off the great

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<v Speaker 5>successes DC at about two hundred of the things we've

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<v Speaker 5>done that are so successful.

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<v Speaker 9>Meanwhile, President Trump also touted sending federal agents to another city.

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<v Speaker 9>The National Guard and immigration authorities have started operations in Chicago.

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<v Speaker 9>The Justice Department is charged demand with the fatal stabbing

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<v Speaker 9>of a twenty three year old Ukrainian refugee on a

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<v Speaker 9>North Carolina commuter train. The charge means the Carlos Brown

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<v Speaker 9>Junior could face the death penalty of convicted of first

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<v Speaker 9>degree murder. Brown Junior has a lengthy arrest record, with

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<v Speaker 9>fourteen prior criminal cases. An urgent manhunt in New York

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<v Speaker 9>City today following a horrific fire and double homicide Polissa

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<v Speaker 9>and elderly couple was set on fire in their Queen's

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<v Speaker 9>home Monday. Frank and Maureen Olton, both in their seventies,

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<v Speaker 9>have been identified as the two victims. Commissioner Jessica Tish

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<v Speaker 9>says the victim's neighbors reported and unknown man knocking on doors.

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<v Speaker 10>The suspects m o is to go door to door

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<v Speaker 10>asking for some kind of assistance until he can gain entry.

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<v Speaker 10>So do not allow wow anyone you don't know or

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<v Speaker 10>who you are not expecting into your home.

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<v Speaker 9>In my PD, Commissioner Tish says, the suspect is forty

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<v Speaker 9>two year old Jamil McGriff, an armed and dangerous career

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<v Speaker 9>criminal out on parole for robbery. It is a rain

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<v Speaker 9>mid day for New Orleans Mayor LaToya Cantrell in federal

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<v Speaker 9>court on felony charges that include alleged wire fraud, obstruction

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<v Speaker 9>of justice, and lying to the FBI. Ken Trell is

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<v Speaker 9>still the city's mayor and is not running for reelection.

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<v Speaker 9>Global News twenty four hours a day and whenever you

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<v Speaker 9>want it with Bloomberg News Now Michael Bayron, This is

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<v Speaker 9>Bloomberg Karen.

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<v Speaker 2>Thanks Michael, time now for our Bloomberg Sports updating. For that,

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<v Speaker 2>we bring in John stash Hour.

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<v Speaker 11>Thanks Darren Kyles Schwarberg heading homer since his four home

0:10:46.960 --> 0:10:49.559
<v Speaker 11>run game almost two weeks ago, a three run shot

0:10:49.600 --> 0:10:51.560
<v Speaker 11>to help the Phillies beat the Mets nine to three,

0:10:51.600 --> 0:10:54.680
<v Speaker 11>the fiftieth home run of the season for Schwarber. Aaron Judge,

0:10:54.720 --> 0:10:57.439
<v Speaker 11>it is forty fourth, moved past Jogi barn the fifth

0:10:57.440 --> 0:11:00.320
<v Speaker 11>on the all time Yankee list, but Detroit scoring nine

0:11:00.360 --> 0:11:02.280
<v Speaker 11>runs on the seventh. Then he beat the Yankees twelve

0:11:02.320 --> 0:11:04.480
<v Speaker 11>to two. The Red Sox shout out the A six

0:11:04.559 --> 0:11:06.680
<v Speaker 11>and I think quite a major league debut for Connolly.

0:11:06.840 --> 0:11:10.400
<v Speaker 11>Early went by betting to allowed no Ron's struck out eleven.

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

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<v Speaker 2>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 2>after this.

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

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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. The legal fight between President

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<v Speaker 3>Donald Trump and Federal Reserve Governor Lisa Cook has taken

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<v Speaker 3>a key turn ahead of the fed's next rate decision

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<v Speaker 3>one week from today. The federal judge is allowing Cook

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<v Speaker 3>to stay in her job while she continues to challenge

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<v Speaker 3>the president's effort to oust her for alleged mortgage fraud.

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<v Speaker 3>Joining us for the latest is Bloomberg Markets reporter Valerie

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<v Speaker 3>Titel soval this case clearly isn't over, but I guess

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<v Speaker 3>this is a bit of a reprieve for Governor Cook.

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<v Speaker 3>Good morning, Good.

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<v Speaker 4>Morning, Nathan. Well, I thought it was really interesting to

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<v Speaker 4>look at why the judge decided to take this action,

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<v Speaker 4>decided to let Cook remain in the seat while the

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<v Speaker 4>court considers the case, and to her opinion on the case,

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<v Speaker 4>she says that only Cook's conduct on the job could

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<v Speaker 4>be grounds for removal, and given that this alleged Morgan

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<v Speaker 4>fraud actually happened a few months up to a year

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<v Speaker 4>before she became a sitting governor, the judge is essentially

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<v Speaker 4>saying that it's unlikely that Trump has cause to dismiss her. Now, remember, Nathan,

0:12:32.480 --> 0:12:35.360
<v Speaker 4>this is the first time that a sitting US president

0:12:35.400 --> 0:12:38.840
<v Speaker 4>has tried to remove a Federal Reserve Board governor. The

0:12:38.960 --> 0:12:41.840
<v Speaker 4>law in the Federal Reserve Act does give the president

0:12:42.160 --> 0:12:45.400
<v Speaker 4>power to fire FED officials for cause, but the law

0:12:45.520 --> 0:12:50.480
<v Speaker 4>does not specify what exactly that means, leaves it very vague.

0:12:50.559 --> 0:12:53.480
<v Speaker 4>But this ruling, eventually, when we do get it, could

0:12:53.480 --> 0:12:57.000
<v Speaker 4>have lasting effects on clarifying what is justified as cause

0:12:57.040 --> 0:13:01.120
<v Speaker 4>in this scenario. Now, this case is likely to trigger

0:13:01.200 --> 0:13:04.800
<v Speaker 4>a high stakes appeals battle. It's likely to quickly land

0:13:05.160 --> 0:13:08.800
<v Speaker 4>at the Supreme Court, but questions still. You can essentially

0:13:08.800 --> 0:13:11.600
<v Speaker 4>debate both sides on how the Supreme Court will handle this.

0:13:11.760 --> 0:13:16.000
<v Speaker 4>On one side, they have upheld some of Trump's decisions

0:13:16.080 --> 0:13:20.200
<v Speaker 4>to dismiss other agency heads. But the Supreme Court has

0:13:20.280 --> 0:13:22.800
<v Speaker 4>had some precedents in the past where it has called

0:13:23.120 --> 0:13:27.440
<v Speaker 4>the FED a unique institution that has a special arrangement

0:13:27.559 --> 0:13:30.080
<v Speaker 4>sanctioned by history. So it kind of is giving us

0:13:30.280 --> 0:13:32.679
<v Speaker 4>early hints that they might treat the FED differently from

0:13:32.720 --> 0:13:34.079
<v Speaker 4>other independent agencies.

0:13:34.400 --> 0:13:37.280
<v Speaker 3>So, as this case goes forward, then Valerie, is there

0:13:37.360 --> 0:13:41.559
<v Speaker 3>a risk that governor could still be removed from her

0:13:41.640 --> 0:13:45.160
<v Speaker 3>post before the next decision next week? Since this is

0:13:46.040 --> 0:13:48.320
<v Speaker 3>ostensibly going to appeal, we have about a minute left.

0:13:48.360 --> 0:13:50.800
<v Speaker 4>Well, look, it's going to appeal. I mean it's likely

0:13:50.880 --> 0:13:52.800
<v Speaker 4>that she will be a voter next week. We never

0:13:52.840 --> 0:13:55.720
<v Speaker 4>know how quickly these cases can be dealt with the courts,

0:13:55.720 --> 0:13:57.920
<v Speaker 4>but she is likely to be a voter come next

0:13:57.960 --> 0:14:00.920
<v Speaker 4>week's decision. The case is just we'll probably make its

0:14:00.920 --> 0:14:03.000
<v Speaker 4>way up to the Supreme Court's lap. But the Supreme

0:14:03.040 --> 0:14:07.120
<v Speaker 4>Court has already fast tracked the Trump's case against his tariff,

0:14:07.160 --> 0:14:10.040
<v Speaker 4>so it's likely they might do the same with this case,

0:14:10.240 --> 0:14:12.560
<v Speaker 4>given that they want a weigh the merits of these

0:14:12.600 --> 0:14:15.240
<v Speaker 4>two cases that are highly highly political and have a

0:14:15.320 --> 0:14:16.960
<v Speaker 4>huge effect on the market.

0:14:18.160 --> 0:14:21.120
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