Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Can we begin this morning with a key court ruling
Speaker 3: involving Federal Reserve Governor Lisa Cook. The judge has temporarily
Speaker 3: blocked President Trump's effort to remove her from her position
Speaker 3: at the FED. Bloomberg Markets reporter Valerie Titel says the
Speaker 3: decision allows Cook to remain in her post while she
Speaker 3: challenges the White House's attempt to oust her over allegations
Speaker 3: of mortgage fraud, which Cook says are politically motivated.
Speaker 4: This is a really important case to follow because this
Speaker 4: is the first time a president has sought to remove
Speaker 4: someone at the FED, and given the law written into
Speaker 4: the Federal Reserve Act, the president can remove somebody for cause,
Speaker 4: but it's very vague on what cause actually entails, and
Speaker 4: this ruling really can have lasting effects on clarifying what
Speaker 4: is justified as called in this scenario.
Speaker 3: Bloomberg's Valery Titesell says the judge concluded the alleged misconduct
Speaker 3: likely does not amount to cause for her removal.
Speaker 2: Let's turn to the Middle East, now Nathan. Israel conducted
Speaker 2: an unprecedented strike against senior Hamas leaders in the Katari
Speaker 2: capital of Doha, escalating an already tense standoff between the
Speaker 2: country and Arab nations over the war in Gaza. The
Speaker 2: move drew criticism from the Trump administration, saying the bombing
Speaker 2: did not advance Israeli or American goals in trying to
Speaker 2: bring an end to the Middle East conflict, and the
Speaker 2: President says he was not given advanced notice of the attack.
Speaker 5: I was very unhappy about it, very unhappy about every aspect,
Speaker 5: and we got to get the hostages.
Speaker 6: Back, but I was very unhappy about the way that
Speaker 6: went down.
Speaker 3: Now, so you were caught by surprise.
Speaker 5: I'm never surprised by anything, especially when it comes to
Speaker 5: the Middle East.
Speaker 2: President Trump added that he spoke with both Israel Prime
Speaker 2: Minister Benjamin att and Yahoo and Katari leaders after the
Speaker 2: strike and assured Cutter that such an attack would not
Speaker 2: happen again. HAMA said five of its members were killed
Speaker 2: in the attack, though its May negotiating delegation survived.
Speaker 3: And Karen Katar is condemning this strike, calling it a
Speaker 3: flagrant violation of international law. It says it will not
Speaker 3: tolerate this reckless Israeli behavior and it's continued tampering with
Speaker 3: regional security. William Roebuck as executive vice president at the
Speaker 3: Arab Golf States Institute. He says the attack threatens the
Speaker 3: ceasefire deal that President Trump proposed.
Speaker 6: I don't see prospects for the negotiations to start up again.
Speaker 6: And I also on the Israeli side, just assessing the
Speaker 6: way they have responded to the negotiation proposal, I don't
Speaker 6: see a lot of strong interest on their side yet
Speaker 6: in that proposal from President Trump.
Speaker 3: William Roebuck of the Arab Gulf States Institute Bloomberg Economic
Speaker 3: says while crude oil futures jumped after the attack, oil
Speaker 3: prices are unlikely to move persistently. Checking oil prices now,
Speaker 3: they are moving higher. West Texas Intermediate It's up one percent,
Speaker 3: trading as sixty three dollars twenty eight cents per barrel.
Speaker 3: Brent is up nine tenths of one percent at sixty
Speaker 3: seven dollars two cents and.
Speaker 2: Nathan mahamore geopolitical news this morning related to the war
Speaker 2: in Ukraine. Poland has shot down drones that crossed into
Speaker 2: its territory during a Russian airstrike on Ukraine. The Polish
Speaker 2: military calling it an act of aggression, and the country's
Speaker 2: premiere is asking NATO allies for support. Bloomberg Daybreak Europe
Speaker 2: anchor Stephen Carrol is in Brussels and joins US Live
Speaker 2: with the details.
Speaker 7: Good morning, Stephen, Good morning, Karen and Nathan. Poland's Prime Minister,
Speaker 7: Donald Tusk, says his country's airspace was violated by a
Speaker 7: huge number of Russian drones in the early hours of
Speaker 7: this morning. Airports were closed for several hours, while citizens
Speaker 7: in the east were told to stay indoors. It's the
Speaker 7: first time the NATO member has shot down military aircraft
Speaker 7: that have strayed into its airspace since the start of
Speaker 7: Russia's full scale invasion of Ukraine. The EU's Foreign affair
Speaker 7: chief Kaya Kalas says the incursion appears to be intentional.
Speaker 7: The Polish Prime minister has asked NATO to invoke Article
Speaker 7: four of its tracy, which triggers consultations on a military
Speaker 7: response in Brussels. Stephen Carol Bloomberg Radio.
Speaker 3: Okay, Stephen, thank you. This news from Poland comes as
Speaker 3: President Trump has told European officials He's willing to impose
Speaker 3: new tariffs on India and China to pressure Russian President
Speaker 3: Vladimir Putin to negotiate with Ukraine, but only if EU
Speaker 3: nations do so as well. Other potential measures discussed include
Speaker 3: further sanctions on Russia's shadow fleet of oil tankers and
Speaker 3: restrictions on its banks and major oil companies.
Speaker 2: And there's more tariff news, Nathan. The Supreme Court will
Speaker 2: de shigne whether the bulk of President Trump's tariffs are legal,
Speaker 2: with arguments to be heard in the first week of November.
Speaker 2: The tariffs remain in place for now, but a decision
Speaker 2: striking down the tariffs could cut the current average US
Speaker 2: effective tariff rate and force the US to refund tens
Speaker 2: of billions of dollars and potentially up and preliminary trade deals.
Speaker 3: I want to turn now, Karen to a major political
Speaker 3: race we're following in Boston, and expected one on one
Speaker 3: showdown for Boston Mayor Michelle Wu and Challenger Josh Craft
Speaker 3: is officially underway. Wu has not a sweeping victory in
Speaker 3: the city's preliminary election, with one hundred percent of precincts reporting,
Speaker 3: WU has drawn seventy one point six percent support to
Speaker 3: Josh Craft's twenty three point three percent. The remaining five
Speaker 3: percent of the vote went to activist Domingos de Rosa
Speaker 3: and former police officer Robert Capucci. The election is scheduled
Speaker 3: for Tuesday, November fourth.
Speaker 2: And looking at other elections across the country, here Nathan
Speaker 2: a Democratic James Walkinshaw won the special election for Virginia's
Speaker 2: eleventh district, holding on to the Democratic leaning seat in
Speaker 2: the suburbs of Washington, DC. Walkinshaw will fill the seat
Speaker 2: vacated in May by the death of Representative Jerry Connolly,
Speaker 2: and Walkinshaw's win will narrow the Republican majority in the House,
Speaker 2: where Speaker Mike Johnson will now only be able to
Speaker 2: afford two defections from his party to still pass legislation.
Speaker 3: Back to Wall Street now, Karen Traders are going to
Speaker 3: get more ECON data today. The Producer Price Index for
Speaker 3: August is do out at eight thirty am Wall Street time.
Speaker 3: We get a preview now from Bloomberg's Michael McKee.
Speaker 5: If anything could derail a FED rate cut, it would
Speaker 5: be an August jump in inflation that's not expected when
Speaker 5: the government releases the month's producer price index. The consensus
Speaker 5: monthly change is just a third the size of July's
Speaker 5: increase on an annual basis. Headline wholesale inflation is forecast unchanged,
Speaker 5: while the core rate actually drops, a surprise, of course,
Speaker 5: would increase market angst, although tomorrow's consumer price index will
Speaker 5: have greater impact. What's likely to matter most today is
Speaker 5: where we might see tariff induced inflation and how much.
Speaker 5: Michael McKee, Bloomberg Radio.
Speaker 2: All right, Michael, thank you, returned to Big Tech Now
Speaker 2: and a look at Oracle, which is surging this morning,
Speaker 2: with shares jumping to a record after the company gave
Speaker 2: an aggressive outlook for its cloud business, stunning Wall Street
Speaker 2: and galvanizing hopes that the post chat GPT global AI
Speaker 2: infrastructure buildout is accelera rating Oracle's cloud infrastructure revenue increase
Speaker 2: fifty five percent to three point three billion dollars, with
Speaker 2: the company signing four multi billion dollar contracts with three
Speaker 2: different customers in the quarter, and it's expecting to sign
Speaker 2: up several additional customers in the coming months. And looking
Speaker 2: at Oracle shares this morning up almost twenty nine percent.
Speaker 3: Yeah, Karen, We're also keeping on Apple shares this morning
Speaker 3: they're down a half percent in the pre market. After that,
Speaker 3: tech Giant introduced a fresh range of products, including enhanced AirPods, watches,
Speaker 3: and the thinnest ever iPhone, along with new pro versions
Speaker 3: of the smart device. Dan Ives, global head of tech
Speaker 3: Research and Webush Security, says the updates should move the
Speaker 3: needle for Apple.
Speaker 8: There's nothing here that makes you think that this is
Speaker 8: going to be the game change that everyone's been waiting for.
Speaker 8: But I do believe given the install base, given some
Speaker 8: of the tweaks here, and ultimately on the on sort
Speaker 8: of the second half of this upgrade cycle, you will
Speaker 8: have an AI riven Echoesism. I believe it will be
Speaker 8: Google Gemini. This could be a sneaky upgrade cycle that
Speaker 8: I think surprises investors on the upside.
Speaker 3: And what Bush's dan Ives adds, the iPhone seventeen air
Speaker 3: drew the loudest cheers at the product launch in Cooper Tino.
Speaker 2: Time now for a look at some of the o
Speaker 2: their stories making news in New York and around the world,
Speaker 2: and for that we're joined by Bloomberg's Michael Barr.
Speaker 9: Michael, good morning, Good morning, Karen. That's not my signature
Speaker 9: that denial from President Trump Tuesday, when he was asked
Speaker 9: about a letter he allegedly signed for Jeffrey Epstein's fiftieth
Speaker 9: birthday book in two thousand and three. Democrats on the
Speaker 9: House Oversight Committee released an image of the message Monday.
Speaker 9: It includes a message of signature at the bottom that
Speaker 9: looks like the president's and an outline of a woman's figure.
Speaker 9: President Trump spoke to the media before dinner in Washington.
Speaker 2: It's nonsense, and frankly, you're wasting your time.
Speaker 5: All you do is trying to get off the great
Speaker 5: successes DC at about two hundred of the things we've
Speaker 5: done that are so successful.
Speaker 9: Meanwhile, President Trump also touted sending federal agents to another city.
Speaker 9: The National Guard and immigration authorities have started operations in Chicago.
Speaker 9: The Justice Department is charged demand with the fatal stabbing
Speaker 9: of a twenty three year old Ukrainian refugee on a
Speaker 9: North Carolina commuter train. The charge means the Carlos Brown
Speaker 9: Junior could face the death penalty of convicted of first
Speaker 9: degree murder. Brown Junior has a lengthy arrest record, with
Speaker 9: fourteen prior criminal cases. An urgent manhunt in New York
Speaker 9: City today following a horrific fire and double homicide Polissa
Speaker 9: and elderly couple was set on fire in their Queen's
Speaker 9: home Monday. Frank and Maureen Olton, both in their seventies,
Speaker 9: have been identified as the two victims. Commissioner Jessica Tish
Speaker 9: says the victim's neighbors reported and unknown man knocking on doors.
Speaker 10: The suspects m o is to go door to door
Speaker 10: asking for some kind of assistance until he can gain entry.
Speaker 10: So do not allow wow anyone you don't know or
Speaker 10: who you are not expecting into your home.
Speaker 9: In my PD, Commissioner Tish says, the suspect is forty
Speaker 9: two year old Jamil McGriff, an armed and dangerous career
Speaker 9: criminal out on parole for robbery. It is a rain
Speaker 9: mid day for New Orleans Mayor LaToya Cantrell in federal
Speaker 9: court on felony charges that include alleged wire fraud, obstruction
Speaker 9: of justice, and lying to the FBI. Ken Trell is
Speaker 9: still the city's mayor and is not running for reelection.
Speaker 9: Global News twenty four hours a day and whenever you
Speaker 9: want it with Bloomberg News Now Michael Bayron, This is
Speaker 9: Bloomberg Karen.
Speaker 2: Thanks Michael, time now for our Bloomberg Sports updating. For that,
Speaker 2: we bring in John stash Hour.
Speaker 11: Thanks Darren Kyles Schwarberg heading homer since his four home
Speaker 11: run game almost two weeks ago, a three run shot
Speaker 11: to help the Phillies beat the Mets nine to three,
Speaker 11: the fiftieth home run of the season for Schwarber. Aaron Judge,
Speaker 11: it is forty fourth, moved past Jogi barn the fifth
Speaker 11: on the all time Yankee list, but Detroit scoring nine
Speaker 11: runs on the seventh. Then he beat the Yankees twelve
Speaker 11: to two. The Red Sox shout out the A six
Speaker 11: and I think quite a major league debut for Connolly.
Speaker 11: Early went by betting to allowed no Ron's struck out eleven.
Speaker 11: That's your Bloomberg Sports Update.
Speaker 2: Stay with us. More from Bloomberg day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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. The legal fight between President
Speaker 3: Donald Trump and Federal Reserve Governor Lisa Cook has taken
Speaker 3: a key turn ahead of the fed's next rate decision
Speaker 3: one week from today. The federal judge is allowing Cook
Speaker 3: to stay in her job while she continues to challenge
Speaker 3: the president's effort to oust her for alleged mortgage fraud.
Speaker 3: Joining us for the latest is Bloomberg Markets reporter Valerie
Speaker 3: Titel soval this case clearly isn't over, but I guess
Speaker 3: this is a bit of a reprieve for Governor Cook.
Speaker 3: Good morning, Good.
Speaker 4: Morning, Nathan. Well, I thought it was really interesting to
Speaker 4: look at why the judge decided to take this action,
Speaker 4: decided to let Cook remain in the seat while the
Speaker 4: court considers the case, and to her opinion on the case,
Speaker 4: she says that only Cook's conduct on the job could
Speaker 4: be grounds for removal, and given that this alleged Morgan
Speaker 4: fraud actually happened a few months up to a year
Speaker 4: before she became a sitting governor, the judge is essentially
Speaker 4: saying that it's unlikely that Trump has cause to dismiss her. Now, remember, Nathan,
Speaker 4: this is the first time that a sitting US president
Speaker 4: has tried to remove a Federal Reserve Board governor. The
Speaker 4: law in the Federal Reserve Act does give the president
Speaker 4: power to fire FED officials for cause, but the law
Speaker 4: does not specify what exactly that means, leaves it very vague.
Speaker 4: But this ruling, eventually, when we do get it, could
Speaker 4: have lasting effects on clarifying what is justified as cause
Speaker 4: in this scenario. Now, this case is likely to trigger
Speaker 4: a high stakes appeals battle. It's likely to quickly land
Speaker 4: at the Supreme Court, but questions still. You can essentially
Speaker 4: debate both sides on how the Supreme Court will handle this.
Speaker 4: On one side, they have upheld some of Trump's decisions
Speaker 4: to dismiss other agency heads. But the Supreme Court has
Speaker 4: had some precedents in the past where it has called
Speaker 4: the FED a unique institution that has a special arrangement
Speaker 4: sanctioned by history. So it kind of is giving us
Speaker 4: early hints that they might treat the FED differently from
Speaker 4: other independent agencies.
Speaker 3: So, as this case goes forward, then Valerie, is there
Speaker 3: a risk that governor could still be removed from her
Speaker 3: post before the next decision next week? Since this is
Speaker 3: ostensibly going to appeal, we have about a minute left.
Speaker 4: Well, look, it's going to appeal. I mean it's likely
Speaker 4: that she will be a voter next week. We never
Speaker 4: know how quickly these cases can be dealt with the courts,
Speaker 4: but she is likely to be a voter come next
Speaker 4: week's decision. The case is just we'll probably make its
Speaker 4: way up to the Supreme Court's lap. But the Supreme
Speaker 4: Court has already fast tracked the Trump's case against his tariff,
Speaker 4: so it's likely they might do the same with this case,
Speaker 4: given that they want a weigh the merits of these
Speaker 4: two cases that are highly highly political and have a
Speaker 4: huge effect on the market.
Speaker 2: This is Bloomberg day Break, your morning podcast on the
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Speaker 3: here on Bloomberg Day Ray