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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the latest on the Trump administration's trade policy. President Trump announced on social media that his sweeping new tariffs are in effect as of midnight East Coast time, targeting what he calls countries that have taken advantage of the United States for many years. The move pushes US tariff rates to their highest level since World War Two. Bloomberg's Bill Ferries says the ultimate goal of on shoring manufacturing jobs could have secondary effects.
The US average tariff rate is now just over fifteen percent, and it was below two point three percent last year before President Trump took office. So from two percent to fifteen percent certainly at some point that is going to really wind its way through the US economy and show up on the shelves of stores.
Bloomberg's Bill Ferry says trading partners including the European Union, Japan, and South Korea negotiated a fifteen percent tariff right Switzerland was assigned the highest tariff of any developed nation at thirty nine percent after failing to reach a deal. When its president visited Washington for an emergency visit yesterday.
And Nathan, the president assigned a much higher tariff on monkey trading partner India. President Trump said yesterday he plans to double tariffs on Indian goods to fifty percent as a penalty for buying Russian oil.
As you know, we put a fifty percent tariff on India on oil. They're the second largest, so very close to China in terms of the purchase of oil from Russia.
Why are you singling India out for these additionals.
It's only been eight hours, so let's see what happens over the next one. You're going to see a lot more. So this is president, You're going to see a lot more.
President Trump added he may also punish China with additional tariffs over its purchases have crued from Russia. Negotiations with China are still ongoing, along with the US's other two largest trade partners, Mexico and Canada.
Meanwhile, Karen, speaking of Russia, President Trump told reporters there's a very good chance he'll meet President Vladimir Putin and Ukraine's Vladimir Zelenski soon and another bid to broker piece. The Kremlin says an agreement is in place for the US and Russian presidents to meet in the coming days, the location still to be determined', according to the Interfax News service. In the Oval Office, President Trump addressed a meeting between Putin and US Special ENVOYE.
Steve Whitcoff in Moscow.
We had some very good talks with President Putin today and there's a very good chance that we could be ending the ending the round, ending the end of that road. Road was long and continues to be long. But there's a good chance that there will be meeting very soon. Excuse me, do you think you are sometimes people? Well, look, I don't want to say I've been disappointed before.
President Trump informed allies he was positive about the possibility of a sea firing Ukraine.
Well. Turning back to trade Nathan, President Trump additionally declared plans for a new one hundred percent tariff on semiconductor imports. Standing next to Apple's CEO Tim Cook and the Oval Office, the President said the aim is to bring manufacturing back to the US.
We'll be putting a terraphone of approximately one hundred percent on chips and semiconductors, but if you're building in the United States of America, there's no charge.
And in light of President Trump's announcement, companies including Apple, TSMC, and Nvidia pledge to spend more than one trillion dollars collectively in the US.
And part of that pledge from Apple Karen is a promise to onshore one hundred percent of iPhone and watch cover glass production in the US. It's part of an expanded two and a half billion dollar partnership with Corning.
This is a significant step toward the ultimate goal of ensuring that iPhone sold in the United States of America also are made in America.
The President Trump singled out Apple as an example of how to avoid increased levies, saying quote apples coming back to America. CEO Tim Cook did tell the President that final iPhone assembly will be elsewhere for a while.
Let's turn to the airline industry now, Nathan and the tech issue grounding it outed air flights across major US airports. United Airlines announced it's resuming flights after fixing a tech issue that temporarily delayed hundreds of flights. The airline said the underlying technology issue has been resolved, and while we expect residual delays, our team is working to restore our
normal operations. That being a quote. A United spokesman said the outage was not related to recent instances of cybersecurity issues in the airline industry.
Turning to the broader economy, now Karen three Federal Reserve officials are voicing fresh concerns over the labor market and signaling a potential rate cut next month. San Francisco FED President Mary Daily says policymakers need to prevent further deterioration in the labor market.
Once the labor market stumbles, it falls, and it falls quickly, and it falls hard. So you don't want to get into that situation. So all this means, as you put it together, that I think will you'd likely need to adjust the policy rate sometime in the coming months.
San Francisco FED President Mary Daly's comments followed rhetoric from Fed Governor Lisa Cook. She says downward revisions in the jobs report are typical of turning points in the economy, and Minneapolis Fed President Neil Cashcari told CNBC he expects two interest rate cuts before the end of the year.
Well let's go to other FED news. Nathan. President Trump indicated he'll likely nominate a temporary Federal Reserve governor within the coming days. The President said he's considering probably three candidates for the temporary position if ied. Announced on Friday that FED Governor Adriana Coogler would resign from her seat on the Bord of Governors before her term is up in January.
And in earnings News, Karen topgall Callaway brands rose after boosting guidance and saying promotions helped increase customer visits at its venues. The golf company's Top Golf unit beat as increased promotions in the quarter, like frozen margaritas and half off golf during the week.
We're enough to lure swingers.
In CEO Arty Stars, says Top Golf Summer pass is selling more than twice what it was offered three years ago.
Time now for a look at some of the other stories making news in New York and around the world, and for that rejoined by Blueberry's John Tucker. John, Good Morning Man.
Good morning Karen. The Trump administration is offering to simplify its lawsuit with Harvard University. The shift is the latest twist in the litigation over the government's attempt to revoke Harvard's ability to enroll international students, citing claims of campus anti Semitism and alleged ties to the Chinese Communist Party. UCLA has entered into negotiations with the administration trying to re state about four hundred and eighty four million dollars
in frozen federal research funding. The move comes after the Trump Justice Department had given the school a Tuesday deadline to enter into a resolution agreement. Five people are hurt after an Army sergeant open fire and fellow soldiers at Fort Stewart in Georgia. The a Q shooter now under arrest. No word on a motive for the shooting or how the shooter got his personal weapon onto the base. An outbreak of Legionnaire's disease in Central Harlem in New York
that has now caused three deaths. Let's get more from Bloomberg's Charlie Pellett.
Health officials are still trying to track down the source, and the New York City Health Department says scores have been sickened from the Legionella bacteria. The outbreak was identified in central Harlem in late July after a handful of people presented pneumonia like symptoms and tested positive for the disease. Health officials have been testing nearby cooling towers as a likely source of the bacteria and have found some positive result VOLTZ in New York, Charlie Pellett Bloomberg Radio.
And Steve Bennon, a senior advisor to President Trump in his first term and an influential voice in conservative circles, is pushing for EJ. And Tony to lead the Bureau of Labor Statistics. Antonis chief economist at the Conservative Heritage Foundation. Trump fired the BLS commissioner on Friday after a week jobs number of Bennon's podcast, and Tony added that the absence of a Trumpet pick running the agency is part of the reason why we continue to have all these
different data problems. Global News twenty four hours a day and whatever you wanted with Bloomberg News. Now, I'm John Tucker and this is Bloomberg Karen.
All right, John, thank you time now for the Bloomberg Sports update. Here's John stash Hour, John, Good morning.
Good morning, Daren.
The Yankees were out to avoid in oh in six roads if they hadn't gotten swept in Texas in fifteen years. They beat the Rangers three to two on Paul Goldsmith's pinch hit home run seventh inning of lefty reliever Robert Garcia. Goldsmid against lefty pitching is batting over four hundred is average versus right handers is just two thirty. It was a game where cousins both pitched. Jack Lighters started for Texas.
Mark Lighter pitched generally for the Yanks. Matts got swept by the Guardians and at City Field, Cleveland's Gavin.
Williams was two outs from a no hitter high fly.
Ball seventeen on how Martinez on the track hit the wall to the pits Soto in the second base with a double k. Now, they're going to say it did clear defense and went out of the fourth for a home run, and Soto ends the Big Rigs Big for a no hitter with a solo homer in the bottom.
Of the nine.
I'm Guardian CD the Big Rig the nickname for the six foot six inch Williams who threw one hundred and twenty six pitches.
The Guardians won the game four.
To one at Fenway, Kansas City ended the Red Sox seven game wins Drink seven to three in DC Nationals end of the six game losing streak two to one over the A's in Denver, Toronto won twenty to one. The Blue Jays swept the series from the Rockies by a combined score of forty five to six. There's sixty three hit since, the most a team has had in
a three game series since at least nineteen hundred. NFL preseason tonight, including the Raiders and Seahawks in Seattle, so the first game for Las Vegas's new coach, seventy three year old Pete Cattle is back where perrel coast for fourteen years. The Patriots played the Commanders tomorrow in Foxborough. Two teams at a joint practice and a fight broke out in the New Patriots coach Mike Rabel jumped in to help break it up emerged with a bloody face.
John Staneshawer Bloomberg Sports.
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.
After months of threats, reversals, negotiations and prices, President Donald Trump's sweeping new tariffs on almost every US trading partner are now in effect, and now investors, companies and global leaders are bracing for impact. Fabian A Fideli, a CIO for Multi Asset and Sustainability at MNG Investments.
Until now, we really haven't seen the impact of tariffs on markets besides some uncertainty among the companies, and our concern is that going forward we are starting to see some of that impact, and so we'll have to see how the next six months spent out.
That's Fabia Fidelli with MG Investments from War We're joined by Bloomberg's Jill Desis.
Jill, Good morning.
The change is here and now at least what we do know is tariff rates in this country are now as high as they've been since World War Two. Walk us through the change. Good morning, Yes, good morning, Nathan.
Well, I think really to kind of drive that point home, you just look at what the average US tariff rate is right now under these latest Trump actions. So Bloomberg Economics estimates it's now up to fifteen point two percent. Just for comparison's sake. Last year it was two point
three percent. So I mean we're talking massive, massive jumps in terms of how much these you know, sort of so called reciprocal tariffs that Trump has handed down really really going to impact how global trade is shaped here. All that being said, I mean, look, there are some deals that Trumps announced or has reached with some of these major trading partners that I think are obviously really
worth noting here. You know, the European Union, Japan, South Korea, they accepted fifteen percent levies on their products, you know, trying to stay away from some of the even higher tariffs that Trump is negotiated. But I would also point out, Nathan, that there are still some trade agreements that seem kind of mired in ongoing negotiations. I mean, look at India, for example, another important US trading partner. They were slapped
to the twenty five percent tariff last week. Now you've got Trump threatening over the next couple of weeks to increase that level into some fifty percent. You've still got you know, sort of this back and forth with what you know, potential China levees could look like. So that's another sort of open question here. So The one thing that I would just point out when it comes to a lot of this trade policy is that you know, we still I think, have to see what this ultimately
looks like long term. I mean, you know, in the olden days, like literally just a year ago, you know, you would imagine these trade agreements would take not just you know, days or months, but ultimately years to effectively negotiate. And so I do think that there is that possibility that things could continue to evolve, if not even just over the next few months, maybe over the course of Trump's Terman office.
Now it raises the questions once again, specifically on some of the countries you mentioned and others, including Switzerland. We saw the president of Switzerland come to Washington at literally the last minute trying to get out from under thirty nine percent tariffs, walking away without a deal. Is there still a possibility that even with these new teriff rates officially in effect, we could see even more negotiations going on.
Yeah, I think, And you know, Trump World, you know, everything's in negotiation, right. Yes, when you're looking at Switzerland, obviously you do have that incredibly steep tarrat thirty nine percent, you know, potentially upending you know, they're you know, there massive gold trades, you know, watches, pharmaceuticals in particular, although you know, I'd also point out Trump's got separate threats on pharmaceutical goods that are just independent from you know,
these individual nation tariffs that he's announced. I do think that, you know, there is that possibility that Trump could ultimately change his mind and maybe something comes up where you do get lower rates in the future. I mean, certainly, I think you know, traders are looking at some of
those possibilities. We've already seen so much change over the last several months since Trump initially you know, announced tariffs, and I think you know, when you've also just got you know, various sectors or you know, even sometimes nations try to play kate Trump with investment deals, you know. I mean, look at you know, the EU, Japan, you know, announcing these big investment deals in the United States that seems to have helped drive things a bit lower for
them in terms of that overall teriff rate. It does seem like maybe there's you know, more on the table here still, even if you've been slapped with a particularly high rate.
Now in the last thirty seconds, Jill there's still the overarching question of whether these tariffs are going to make the ultimate goal of spurring more US manufacturing.
Yeah, I mean, you know, I obviously that's some you know, Trump's got a massive gambit here on reshaping the entirety of global trade. He's claiming, you know, these are going to trash slash trade deficits, These will push companies to move manufacturing back to the United States. I mean, certainly, you've got major companies that are already announcing, you know, major manufacturing programs and investments in the United States. But you know that could potentially take years before you actually
see some of the fruits of those labors. In meantime, I mean, you know, obviously, some of Trump's biggest critics are going to say this could continue to cause inflationment, inflation to spiral out of control, cause shortages on store shelves. So I think, you know, we're obviously witnessing a very dramatic realignment of global trade, and we'll have to see how things can out.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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