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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 trade this morning. In the latest announcement from President Donald Trump, as heard live on Bloomberg Radio, the President says tariffs on semiconductor imports are coming soon.
Chips and semiconductors will be putting tariffs on companies that aren't coming in. We'll be putting a tariff very shortly, probably our hearing. We'll be putting a fairly substantial tariff on not that high, but fairly substantial tariff.
President Trump says the levies could spare companies like Apple, which have pledged to boost investments in the United States. The President previously suggested the tariff rate on ships could be well above one hundred percent, reaching potentially two hundred or three hundred percent.
Well, Nathan, President Trump was speaking at a White House dinner attended by some of the world's biggest tech leaders. The guest list ranged from Apple's Tim Cook, open Ai, Sam Altman, and Google Sundar Peshai, and sitting beside the President was metis Markus Zuckerberg. He was pressed by the President on the company's US investments.
How much are you spending would you say over the next few years?
Oh, gosh, I mean I think it's probably going to be something like, I don't know, at least six hundred billion dollars through twenty eight in the US.
Yeah, to met As Mark Zuckerberg speaking at the White House earlier Thursday, many of the same executives joined First Lady Malania Trump for a discussion on AI.
And we have a major new development potentially in the AI space this morning, Karen, We've learned that open ai is partnering with Broadcom to design and produce artificial intelligence chips and what would be a direct challenge to Nvidia. Bloomberg News is reporting the first accelerator chips that begins
show next year. Broadcom CEO told investors on his latest earnings call that the company's AI outlook will improve significantly next year, with expected revenue from semiconductors to reach more than six billion dollars in the fourth quarter.
Nathan, let's turn to the economy now. In today's critical jobs report, which could cement a rate cut at this month's FED meeting, markets are currently pricing in a quarter point cut in September. Speaking at a fireside chat yesterday, Chicago Fed President Austin Goulesby said the number will be important, but stressed he's looking at a broad range of data points.
I'm one of the data dogs, so you're never going to hear me say throw away a number and pay no attention to it.
But I'm just going to index on that.
Number tomorrow morning, a little bit less than we normally would.
Chicago Fed President Austin Goulesby says if the job market shows further deterioration, it could be assigned to loosen monetary policy. The August Jobs report drops at eight thirty Wall Street Time. Please stick with Bloomberg for live coverage to the data on blue Burg Surveillance with Tom Keen and Paul Sweeney on Bloomberg Radio and the Bloomberg Podcast page on YouTube.
Well, Karen Golsby's not the only Fed speaker talking about raid cuts. New York Fed President John Williams says the Central Bank is facing a delicate balancing act when it comes to policy.
We need to keep the labor market in balance to ensure that the effects of terrorists do not spill over into a longer lasting broad increase interflation. On the other hand, maintaining a stance of too restricted policy for too long could increase risks to a maximum employment mandate.
New York Fed President John Williams says the impact of tariff's on inflation has been less than originally feared. He says the labor market is undergoing gradual cooling consistent with a slowdown in the economy.
And we turned out to New York City's mayoral race. The New York Times is reporting Nathan that Mayor Eric Adams told Confidence that he's weighing job opportunities that would prompt him to abandon his re election bid. Reports indicate Adams had been in talks with advisor to President Trump about a potential job if he quits the race, which he's denied. President Trump wade in on the race at the White House last night.
I would like to see two people drop out and have it be one on one, and I think that's a race they could be one.
The President emphasized he'd prefer not to have a communist mayor of New York City, referring to current Democratic front runners are run Mom Donnie for full transparency. Michael Bloomberg, founder a majority owner of Bloomberg LP, the parent company oft Bloomberg Radio, has endorsed Andrew Cuomo in the mayor's race.
What's turned out care into the latest and President Trump's efforts to oust FED Governor Lisa Cook. The Justice Department has opened a criminal investigation into whether Cook committed mortgage fraud, sources tell Bloomberg. Federal prosecutors have issued subpoenas relating to allegations that Cook misrepresented information on mortgage applications. Last month, the President said he was removing Cook after Federal Housing Finance Agency Director Bill Poulti accused her of mortgage fraud.
Cook is suing her lawyer denies the charge and says the President lacks valid grounds to remove her, and in a filing late last night, Cook said a court ruling in favor of Harvard University backs her argument that President Trump's attempt to fire her is a pretext.
At the same time, Nathan, President Trump is asking the Supreme Corps to let him fire FTC Commissioner Rebecca Kelly Slaughter, testing a nineteen thirty five Supreme Court ruling that said Congress could insulate high ranking officials from being fired. The filing follows a federal appeals court decision reinstating Slaughter, who is challenging Trump's attempt to alster. Trump sought to remove
Slaughter from her position in March. She sued, arguing that her olster flouted the FTC Act, which says a president can remove commissioners only for cause.
On Capitol Hillcare and there are plenty of fireworks at multiple hearings, one involving President Trump's FED pick Stephen Myron, the President selected as chair of the White House Council of Economic Advisors to fill Adriana Coogler's seat on the FED Board. Democrats raised concern that because Myron says he wants to keep his White House job while serving at
the FED, that could compromise Central Bank independence. Myron addressed those concerns during Bloomberg's live coverage of the hearing.
The President nominated me because I have policy views that I suppose that he liked. If I'm confirmed to this role, I will act independently as the Federal Reserve always does, based on my own personal analysis of economic data, my own personal analysis of the effects of economic policies upon the economy and act based on my judgment of my judgment of the best economic policy possible.
Stephen Myron says he spent much of his career studying monetary policy. Last year, he wrote a paper detailing numerous proposals to overhaul the FED.
Meanwhile, Nathan Health and Human Services Secretary Robert F. Kennedy Junior was criticized by Democrats and some Republicans. At his hearing. Senators challenged Kennedy's changes to federal health agencies, including overhauling a key vaccine advisory and slashing you a support for global immunization efforts. He had a heated exchange about COVID with Democratic Senator Mark Warner of Virginia.
There was so much.
Data chaos coming out of the CDC, and it would all take.
Out incentives and these are modeling.
You know, I know the answer of how many America side from COVID. This is the Secretary of Health and Human Services.
Senator Mark Warner addressed the hearing with Bloomberg afterwards.
This guy promised that he was going to follow science, not you know, across the board fire experts he's on. It feels like a persh against any of the respective scientists.
Virginia Senator Mark Warner was speaking on Bloomberg's Spellance of Power, and it's time no off for a look at some of the other 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. Massachusetts Governor Mara Heally says the Bay State will vaccines available to its residents no matter what happens at the federal level. That means insurance carriers will have to cover vaccinations required by the States Department of Public Health, no matter what is recommended at the federal level. The move comes after AJHS Secretary Robert F. Kennedy junior fire the CDC director, restructured the department and
attacked doctor groups that recommended vaccinations. Heally says they won't let the Trump administration get between doctors and patients.
We're forced to do this as states because of the abdication of responsibility by the federal government, and so we've worked quickly here in Massachusetts.
We've worked with other states.
We're going to invite other states to join our coalition so that there is more of a consensus.
Governor Healy says no one in Massachusetts is going to be denied because of cost. Josh Kraft is contributing an additional three point five million dollars to his campaign to unsea Boston Mayor Michelle Wo, The son of billionaire New England Patriots owner Robert Craft, has spent a total of five point five million dollars of his own fortune on the campaign, which has also been funded by donations from
his father's friends and associates. Despite out spending his opponent, Craft trails Woo by thirty points in a recent poll. The thirty day deployment of the National Guard in Washington, d C has been extended until at least the end of November. Brigadier General Leland Blanchard made the announcement via social media.
I've made the decision to extend the encampment as we continue to work to ensure that everyone that walks through these city streets is safe.
The order applies only to the DC National Guard, not those sent from other states. Rhode Island and Connecticut sue the Trump administration over its order blocking further construction of a nearly completed offshore wind farm meant to provide power to the two New England states. The States asked a federal judge to vacate to stop work order the administration issued against the revolution Win Project located off the coast
of Rhode Island. Global News twenty four hours a day and whenever you want it with the Bloomberg News Now Michael Barr and this is Bloomberg Karen.
Thanks Michael. Time now for our Bloomberg Sports up, Hey, and for that we bring in John stash.
Hour, Thanks Daring. The first game of the NFL season included a lightning delay of more than an hour in Philadelphia. The Eagles and Cowboys had a lot of scoring before the delay that came in the third quarter. None afterwards, Philadelphia beat Dallas twenty four to twenty. Arena Sabalenka and Amanda in Smoa both lost the first sent and won the next two semifinal winners at the US Open. The men's semifinals are today. Kate link Clark. Due to her injury,
we'll miss the rest of the WNBA season. That's a 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. Some of the biggest names in big tech were over at the White House last night touting their investment pledges and boosting their ties with President Donald Trump. The President says he's not worried about competitors like China catching up in the AI race.
We have the smartest people, we have the greatest technology, and they can copy, but they can't create like we can create.
And that was President Trump at a White House dinner with among others, met A CEO, Mark Zuckerberg, Apples, Tim Cook, and Satya Nadella of Microsoft and comments. Heard live on Bloomberg Radio this morning. We're joined by Bloomberg's Valerie Titel and Vali guess. One of the biggest headlines to come out of the dinner last night as President Trump once again saying substantial tariffs on chip imports are coming very soon.
But is this much different from what we've heard from the President in the past.
Good morning.
Honestly, it's not, because he's still touted that some companies like Apple will be carved out of these tariffs that he was foreshadowing could be coming shortly, him noting specifically that Tim Cook will be in pretty good shape. Of course, that is Apple's CEO. And with Apple achieving some of those carveouts, it's also understood that some other companies with their chip exports and imports, will be getting a similar carve out as well, as long as they tout these
investments in the US. And as you mentioned, many of these tech leaders in the room in the White House doing so yesterday talking about their spending valves, their investment into the US to build these data centers, to get the right energy infrastructure in place to complement the boom and AI that Trump wants to build.
Did we get a sense last night, val on what the President's priorities are when it comes to boosting Silicon Valley.
Well, look, I think energy infrastructure is a big part of that. We know that many regions globally do not have the kind of energy infrastructure that is needed to drive the data centers, so many of them pledging investments into data centers as well. That's something that's laying the groundwork almost for this AI boom. But I also want to bring you attention to what's going on in the market. This morning. We have shares of Broadcom up nearly nine
percent in pre market trade. They came out with a beat and earnings, and this is important for the chip sector because they also foreshadowed a pact a new customer, Open Ai, which they'll be getting ten billion dollars of revenue from. This is very interesting. They are partnering with the chat GPT owner OpenAI to design and produce an
AI chip. This will be a direct challenge to Navidia's dominance in the AI chip market, but very interesting to see this announced and the shares of Broadcom lifting not only the tech sector but the broader SMP index this morning.
So you our last thirty seconds, then, val, I mean, how much of an issue could that be? Foreign Vidia? I mean, they've really dominated this space for so long.
There's a lot of questions about that whether adding a new competitor into the market it will suffer margins will suffer off the back of that. But note Navidia has some ninety five percent market share, AMD is the leader behind that, and then Broadcom not far behind. But you could definitely argue there needs to be more competitors in this space to drive the cost down of these AI chips could help Trump's AI boom, which he so desperately wants to take place in the US.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak