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