Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm Lisa Matteo. Here are the top stories we're following today.
Lisa, we are just hours away from the key event.
Wall Street has been waiting for the speech from FED chair j Powell at Jackson Hall. The White House has been pressuring Powell to cut rates for months amid a weakening labor market, but questions remain about the impact tariffs will have on inflation. Bloomberg's Michael McKee is in Jackson Hall covering Powell and the annual FED conference.
Last year, Chairman Powell said that he thought it was time the interest rates started to go down, and then he delivered in September when they made a fifty basis point cut. He's not expected to say that here this year.
He's expected to talk about the fact that the economy is slowing on the employment side, but there are some worrying signs of inflation, and since those were require two different ways of responding by monetary policy, the FED would prefer to wait and get as much data and information as possible, which means they'll wait till after the next employment report and the next CPI report before settling on the best course of action.
Bloomberg's Michael McKee part of our special Jackson Hole coverage. He'll join Tom Keen and Lisa Abromowitz for a special edition of Bloomberg Surveillance this morning at nine am Eastern Time, and they will bring you FED share Jpowell speech live that happens at ten am, and you can catch it all on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast channel on YouTube.
Well Nathan. Several former FED officials are weighing into the Fed's next move. Robert Kaplan is the former Dallas FED president and vice chairman of Goldman Sachs.
If the job market were stronger, I think it would be clearer to be more be patient and wait to see how the inflation is going to unfold, and be more patient to see a trend for further down toward target. But I think with this weekending the labor markets, it's going to push the FED I think to be more forward leading and maybe do an adjustment in September. But the caution I would give if they do move in September, I don't think that's the start of a cycle.
I was former Dallas FED President Robert Kaplan. Now the interest rate market shows about a seventy percent chance of a quarter point cut at the September meeting and close to fifty basis points of easing for the entire year.
Oh well, we wait to see whether those bets get refined. Following Chairman Powell speech, Lisa pressure is building on one of the Fed's board members. Federal Housing Finance Agency Director Bill Poulti says he will make a new statement on new evidence against FED Governor Lisa Cook this morning at nine thirty am Wall Street Time. Paulty announced that on x this morning, a day after the Justice Department urged Powell to remove Governor Cook from the board as it
signals plans to investigate her for alleged mortgage fraud. Poulty tells Bloomberg he referred to Cook's case to the DOJ is part of a broader crackdown on the issue.
We refer people almost every day. I refer people every week on a minimum, to the Department of Justice for mortgage fraud. This is literally what I am required to do underneath the Housing and Economic Recovery Act of two thousand and eight, which is to ensure the safety and soundness of the mortgage market.
You can watch our full conversation with FHFA director Bill Polti on the Bloomberg Podcast YouTube channel.
Now Bloomberg has reached out to Governor Cook.
She has declined our requests for an interview, but in a statement, she says she won't be bullied into stepping down, but intends to take questions about her financial history seriously.
Talks continue at the White House Nathan on taking a ten percent stake in Intel to shore up the struggling US chip maker. Now Bloomberg News has learned that Trump administration will not pursue equity stakes and other semiconductor manufacturers that are boosting investment in the US, like Micron Technology and Taiwan's Semiconductor. Now fill moves in the White House to take a cut of Nvidia chip sales in China and to pursue a so called golden share in US steel.
Former Vice President Mike Penn says President Trump should reconsider the whole strategy.
State owned enterprise is not the American way. Free enterprise is the American way, and a refereed private sector with less taxes and less regulation has created the most prosperous economy in the history of the world, and if we stay on that path, that'll always be true.
Former Vice President Mike Pence with a guest on Bloomberg's Balance of Power. You can also get that full conversation on the Bloomberg Podcast YouTube channel.
Well Staying in the chip texter Lisa In, Nvidia reportedly told its component suppliers to halt production of its H twenty AI chip that's designed for the Chinese market. According to the Information, in Vidia issued that order this week after Beijing urged local firms to avoid using those Nvidia chips. CEO Jensen Wong says his company is in talks with Beijing US government.
The Trump administration has approved of licenses for US to export age.
Toities to China.
Recently, China asked some questions about some.
Security back doors in our ships.
We have made it very clear and put to rest that H twenty has no security backdoors.
That was Nvidia CEO Jensen Wong.
The Age twenty is a less powerful version of the company's cutting edge AI accelerators. It was designed to comply with US export controls.
Well well Mark News has learned two tech behemoths are hooking up on an artificial intelligence related deal. Let's get the very re lated from Bloomberg's John Tucker. Good Morning, John, and Lisa.
Meta Platforms has agreed to a deal with alphabetz Google for cloud computing services. That's the first major cloud computing
deal between Meta and Google. Meta CEO Mark Zuckerberg has pledged to spend hundreds of billions of dollars on AI and the infrastructure needed to support howard It, the Facebook and Instagram parent company, will pay a minimum of ten billion dollars over six years to use Google's cloud servers and storage, and an effort to quickly bring online more computing power as it competes in the race to offer
users AI tools. Zuckerberg is seeking to amass the most computing power per AI researcher, and he wants to do it quickly. You know you, York, Come John Tucker, Bloomberg Radio.
Okay, John, thank you. Mark Zuckerberg was almost involved in another big deal. According to a court filing, Elon Musk tried to enlist the Meta CEO for his unsolicited bid for Open Ai this year. Zuckerberg was one of the people with whom must communicate it about potentially financing a deal to purchase the maker of Chat GPT. In the filing, OpenAI says neither Zuckerberg nor Meta signed the letter of intent or participated in the ninety seven billion dollar bid.
Well more news out of Meta this morning, Nathan the company is hiring another key Apple artificial intelligence executive, and this is even as the social networking company prepares a slow wits recruitment. In a Bloomberg exclusive, sources a Frank Chu, who has led Apple AI teams focused on cloud infrastructure, will be joining Meta super Intelligence Labs, and the executive is following several of his colleagues to Meta, which also hired the head of Apple's AI models team.
Meantime, Lisa China is accusing the US of quote threatening world peace before it hosts a gathering of global leaders. More than twenty of them are set to attend the annual summit of the Shanghai Cooperation Organization, which is a block of countries led by Russia and China. Chinese Assistant Foreign Minister Liu Binn framed the gathering as a break with the ethos of a quote certain country that quote seeks to put its national interest above the interest of others.
US was never invited to be part of the group that was initially seen in the West as a China backed Eastern counterweight to NATO.
It is time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael bar Good morning, Michael.
Good morning, Lisa. Governor Phil Murphy says a state of emergency remains for New Jersey as Hurricane Erin battered coastal communities with strong winds, waves, and life threatening rip currents. Governor Murphy says absolutely no one should be in the coastal waters today. Aaron flooded streets and eroded beaches in parts of the Jersey Shore and Long Island. High serve advisories for five to seven feet are in effect. Bloomberg Meeting religious Craig Allen has more.
Erin is now about five hundred miles away from Halifax, Nova Scotia, but still has hurricane force winds one hundred five miles outside of the center and tropical storm force winds three hundred and twenty miles from the center, and so the ocean continues to be very roughed up, and I would bet that there will continue to be red flags flying right through the day today, even though the weather itself is going to be pretty nice.
Bloomberg Meeting religious Craig Allen, one of the two Menendez brothers, was denied parole on Thursday from murdering his parents thirty six years ago in California. It is keeping Eric Menndez behind bars for at least another three years. Today, Lyle Menendez will appear before the parole board. President Trump visited with police and National Guard units that are patrolling Washington, DC.
Well, I just want to thank everybody very much for being here. I wanted to do this. We've had some incredible results and results have come out, and it's like a different place. It's like a different city. It's the capital. It's going to be the best in the world.
In a radio interview earlier Thursday, President Trump said he would be going out tonight with the law enforcement and military, but he returned to the White House after the visit to the facility. Global News twenty four hours a day and whenever you want it with Bloomberg News. Now, michae L.
Barn this is Bloomberg Time.
Now for our Bloomberg Sports update, and for that we bring in John Stashauwer, Thanks Nathan.
Tour Championship Golf Underwagh in Atlanta. Of the thirty players going for the ten million dollar first place prize, nobody played like Russell Henley seven birdies and eagle, no bogies, a nine under sixty one and a two shot lead on Scottie Scheffler. Five others trail by three. Rory McElroy trails by five. Dodgers and Padres both won ALA at Colorado. Clayton Chrishall went to eight and two. San Diego beat the Giants Justin Verlanderfelder one and ten. Dodgers leave the
NL West by one game. That's your Bloomberg Sports Update.
Stay with us. More from Bloomberg Daybreak coming up after.
This Coast to coast on Bloomberg Radio, nationwide on Serious Exam and around the world on Bloomberg dot Com and the Bloomberg Business opp This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager with the countdown on to J. Powell's speech at the FED Symposium in Jackson Hole, Wyoming. His chance to give clues on the policy path for his final nine months as chair to cement his legacy as he continues to face relentless criticism from the White House over interest rates. Ahead of the keynote address, we're very pleased to be joined this morning by Sarah House, senior economists at Wells Fargo. Sarah, it's great to have
you with us on Jackson Hole Day. Do you expect Chairman pal either to give more clues on the policy path or to address that pressure he's under.
Good morning, Good morning, Nathan.
So we're not expecting an explicit hint that what the FED will do at the September meeting. So this is not like last year where I think there was pretty broad consensus that the Fed was needing to pivot. So the committee still remains very split, as we saw within the minutes, but also just some of the recent FED speak, and then I think the recent data we had even
since the minutes, it didn't resolve that split. So yes, you had the much weaker payrolls numbers, but then you also had signed of inflation being more persistent, just based on the mix of the recent inflation readings. So I think going to want to keep his options open where we still have another month's worth of data before that September meeting.
Could there be some addressing of that split? As you say, we have seen a very divergent view starting to come out now on where the policy path should go.
I'm not sure. I think you could see it in terms of him laying out just the difficulty of the moment. So you do have the said Candid's intention where the labor market is living some momentum, but if you look at certain indicators like the unemployment rate, it's still looking like it's roughly imbound. But at the same time, you have inflation that's actually moving back up, so it's moving in the wrong direction when we've been above target for
almost four and a half years now. So I think discussing those dueling directions and the different risks that the set is facing, I think we'll get to just some of that split and why the committee is so divided at this particular moment.
If we do see a chairman Palace sort of keep his cards close to his vest, how do you expect the market to.
React to that?
Yeah, So it seems like markets were pretty much anticipating that we would get that clear cut signal that September is likely, but I think those expectations have been paired back in recent days. Is again, we've had some commentary from some of the various regional FED presidents and even just some of the recent inflation data which showed a lot of their recent strength driven by services, not necessarily it being all tariff induce which I think would have
made it easier for the FED to look through. So I think if he doesn't signal that clear hint in September, and it'll still probably be viewed as hackish, but I think markets have kind of shifted that way anyway, anticipating they won't get that clear, clear green light for September.
I think there is some anticipation that Chairman pal is going to talk about changes to the Fed's framework for addressing inflation and weakness and the labor market. What do you expect there and the market reaction to that. We've got about a minute left, sure.
So we are expecting that they'll announce the new framework, and I think what we'll see is a more symmetric approach to that, so formally ditching FATE. So that was the flexible average inflation target where they said they would make up for pass undershoot, so just returning to that simple two percent target, but also taking a more symmetric approach to its maximum employment side, so not focusing on
only short falls but instead rather any deviation. So I think this could be interpreted as a more hawkish reaction function than the prior framework. But importantly, the feeders already shifted to this so even if it hasn't been formalized yet, so I don't think it changes the new term course of policy, although I think it will shine a light on just how difficult it is the set for the Fed to cut in this moment where core PC inflation is likely to be three percent in August.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each more, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine one in Washington, Bloomberg ninety two to nine in Boston, and nationwide on Sirius XM Channel one twenty one plus.
Listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto Winterfaces.
And don't forget to subscribe to Bloomberg News Now. It's the latest news, whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform.
To stay informed all day long. I'm Nathan Hager and.
I'm Lisa Matteo. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak