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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 trade wars and President Trump's latest effort to uphold his global teriff regime. The President is taking his case to the Supreme Court after a federal appeals court found he improperly imposed country by country duties under a nineteen seventy seven economic emergency law. The administration's asking the High Court to take up its case by September tenth. That's this coming Wednesday. It puts
it on a highly expedited schedule with arguments. In early November, the President addressed the case in Oval Office, comments her live on Bloomberg Radio.
I think we're going to have a big victory. These deals are all done. I guess would have to unwind them. The money coming in is incredible. If we didn't have them, they would use him on us and we would have no way to fight.
And that was President Trump speaking from the Oval Office. Bloomberg Economic says a defeat for the President would cut the average US effective teriff rate at least in half and could force the US to refund billions of dollars in import taxes.
Well, here's a defeat for the Trump administration in court. It lost to Harvard University. A federal court has ruled the US illegally froze more than two billion dollars in the Ivy League institution's research funds. The court found the move violated the school's free speech rights and did not follow proper procedures. Mister Lena at Golf of Pulu is head of Bloomberg's US legal news team.
There wasn't an explicit explanation about whether the administration needs to release this funding immediately or whether the school is going to be able to get it, But the judge clearly laid out in this opinion, which was about eighty pages long, the way the administration went about freezing this fund these funds was illegal.
And Bloomberg's mister Lana A. Golf of Pulu as the ruling stated that the administration used anti semism as a smoke screen for a targeted, ideological, motivated assault on Harvard and other universities. The Trump administration plans to appeal.
Meantime, carrying. The White House is also engaged in another fight in Massachusetts, this one over wind farms. A court filing shows the US is working to withdraw permits for the New England Wind one and two projects off the coast of Nantucket. It's part of a broader crackdown that has disrupted at least four East Coast wind projects this year. Massachusetts Governor Mara Heely says the federal government should be working with states to build more power.
As governor, I am very focused on loring costs for residents for businesses, that includes energy costs. One thing we don't need is energy supply to our region cut off. And unfortunately, that's what we're seeing by the Trump administration's move to kill jobs and to literally take away power by dismantling wind operations on the East Coast.
Massachusetts Governor Maria Healey spoke with Bloomberg News in an interview from Our Boston. You can catch your full comments on the Bloomberg podcast channel on YouTube.
Well in New York, Nathan Mayor Eric Adams is denying that he received an offer from the Trump administration to work at the Department of Housing and Urban Development. If all is a report from Politico that the mayor was offered a job at HUD as incentive to drop out of the race in an effort to consolidate around one candidate to take on front runners around Mam Donnie. A White House official neither confirm nor denied the report, and Mom Donnie is addressing it.
The same president who will throw millions of New Yorkers off their health insurance is now seeking to undermine the very fabric of this city.
And New York City mayoral candidates around Mam Donnie currently leads to Democrat Andrew Cuomo and Republican Curtis Sleewah for transparency Michael Bloomberg, who has endorsed Cuomo as founder and majority owner of Bloomberg LP, the parent company of Bloomberg Radio.
Training.
The markets now Karen stocks and bonds have been rising in the pre market. Traders are anticipating a week jobs report tomorrow that could raise the prospect of a quarter percentage point rate cut at this month's FED meeting. FED Governor Christopher Waller tells CNBC the Central Bank should lawer rates this month and more months from there.
For me, I think we need to start cutting rates at the next meeting, and then we don't have to go in a lock sequence of steps. We can kind of see where things are going. Because people are still worried about tariff inflation. I'm not what everybody else is.
FED Governor Chris Waller is a contender to succeed j Powell as FED chair, and in a sign of labor market weakening, US job openings fell to their lowest level in ten months in July, and US economic activity saw little to no change across most of the country in recent weeks. That's according to the latest FED Beage Book survey of regional business contacts.
Well, let's stick with the FED here, Nathan. The Senate Banking Committee is holding a confirmation hearing today on Stephen Myron's appointment to be a governor of the Federal Reserve. Massachusetts Senator Elizabeth Warren tells Bloomberg's Balance of Power that she believes the Senate Banking Committee should be having the hearing, but says there should be an oversight committee investigating the president's attacks on the Federal Reserve.
It should not be a business as usual, Let's grease the skids and run through Donald Trump's nominee for the FED. Instead, we should be having an oversight hearing about Donald Trump's unprecedented attacks on the independence of the FED.
Democratic Senator Elizabeth Warren spoke with Bloomberg Balance of Power. Hear her full comments on the Bloomberg podcast channel on YouTube.
What's happening in geopolitics this morning, Karen. Ukrainian President Vladimir Zelenski is meeting with several European leaders in Paris today. He is expected to continue talks on security guarantees. This comes with concern that Russia is going to mount a new offensive on Ukraine. With peace stocks stalled. Russian President Vladimir Putin says he'd be willing to meet with Zelenski under the right circumstances.
Donald asked me if it is possible to hold such a meeting.
I said yes, it is possible.
If Zelenski is ready, he should come to Moscow and the meeting will take place.
Russian President Vladimir Putin spoke in Beijing there through an interpreter. President Trump says the US could increase its troop presence in Poland, neighboring Ukraine. He's indicating that more financial penalties could target Moscow as well.
Well. Let's turn to Ai now, Nathan and Shiny's platform, deep Seek is targeting an AI agent release by the end of the year. It's looking to develop a model with more advanced features to compete with US rivals like Open Ai. The AI model is designed to carry out multiple or multi step actions on a person's behalf with minimal direction from the user, and to learn and improve based on its prior actions and Karen.
Apple is gearing up to launch its own AI powered web search engine next year, directly challenging Chat, GPT and Perplexity. Bloomberg's Mark German reports Apple's gearing up to launch it next year.
They haven't announced this yet. There's going to be an AI based web search product within Siri, competing with Chad GPT in Perplexity. If you're like me, I don't go to Google Search anymore, open Chatgypt to search it now for the first time Siri, we'll be able to get you detailed results from the web using its own technology.
Bloomberg's Mark German says Apple's aiming to turn its voice ASSISTANCERI into a robust answer engine with large language models. Apple shares in the pre market little changed, and it's time.
Now for a look at some of their stories making news in New York and around the world, and when I were joined by Bloombergy's Michael Barr Michael, good Morning.
Good Morning Karen. Survivors of Jeffrey Epstein's abuse gathered on Capitol Hill to demand the release of the sex trafficking investigation into the late financier Wednesday. They push back against President Donald Trump's dismissal of the issue as a hoax. During a news conference that women shared their experiences and called for trans transparency, and accountability. Liz Stein is one of those victims.
I loved people, and people genuinely enjoyed being around me, but after meeting Jeffrey Epstein and Gallaine Maxwell, it felt like someone shut off the lights to my soul.
At the White House, President Trump downplays the importance of releasing the full files.
I think it's enough, because I think we should talk about the greatness of our country and the success that we're having. I think we're probably having, according to what I read even from two people in this room, we're having the most successful eight months of any president ever. And that's what I want to talk about. That's what we should be talking about, not the Epstein hoax.
Lawmakers are divided on how to proceed, with some Republican supporting a bill to force the Department of Justice to release all of the records. The Republican controlled House Oversight Committee has released some documents. Portuguese emergency services say an electric street car that is one of Lisbon's big tourist attractions has derailed, killing fifteen people and injuring eighteen others.
The yellow and white streetcar, which goes up and down a steep downtown hill, was lying on its side on the narrow road after Wednesday's accident. Eye witnesses said the streetcar carene down the hill, apparently out of control. In the West, dozens of large wildfires are burning in at least ten states. Near Raymond, California. Battalion Chief Mike Hauk of cal Fire says two fires just miles apart forced evacuations in parts of Mariposa and Madeira County.
Everybody is out there.
They are tireless nights that we are working, and they still give the same effort every fire.
Outside New York City, hundreds of firefighters are trying to contain the Buckbear wildfire in a rural, heavily wooded area in Passaic County in northern New Jersey under investigation, global news twenty four hours a day and whenever you want it with the Bloomberg News. Now now Michael barrn this is Bloomberg.
Karen, all right, Michael barr thank you, Thanks Michael. Time now for our Bloomberg scurce updating for abound you bring in John stash Houer.
Thanks Karen. Tonight in Philadelphia, it's the start of the NFL season, the defended Super Bowl champion Eagles taking on the Dallas Cowboys. At the US Open, Janick Sinner moved into the men's semifinals. Naomi Osaka did for the women, and so did Amanda Anisimova. She upset Igaschiontech, the same player that Amisova lost to in the Wimbledon final six love, six love. The Yankees blew a big lead. They lost in Houston, eight to seven. 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 album. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hagar, And as promised, President Donald Trump is taking his tariffs to the Supreme Court. That's after an appeals court found he imposed his duties illegally under an emergency law. The President says, the stakes in this case could not be higher.
Our country has a chance to be unbelievably rich again, but it can also be unbelievably poor again. If we don't win that case, our country is going to suffer so greatly.
And that was the President speaking in Oval office, comments heard live on Bloomberg Radio. And this morning, we are joined by Bloomberg's Global Trade Bizar Brendan Murray. Brendan, good morning. Let's talk about the stakes in this case. What could be on the line for the president if the Supreme Court does take this up.
Good morning.
Yeah, the President is making this case that the economy will suffer greatly if he's not allowed to impose import taxes on American companies. But it's a bit of an exaggeration. He actually has a lot of other tools that he could use that have already survived challenges. He's already used
these kinds of tariffs on steel, aluminum, and autos. So what the President is asking for here is the broad authority to impose tariffs uh uh on on various countries and raise those or lower lower those as he see fits. And that is what the court uh that now the Supreme Court is going to be asked to to to rule on if the president's already lost in a couple of lower courts, so that he's asking the justices to to overturn what's already been decided in in federal court
and then and and an appeals court decision in late August. So, but the with the framing of his argument, at least publicly will We'll have to wait and see what they say in court. But is that you know, they're collecting a lot of revenue at the moment, and they are renegotiating lots of trade ray agreements with various countries, and all of that hinges on his ability to use these uh so called reciprocal tariffs that he initially announced on April second.
Yeah, So it gets down to the fundamental question, doesn't it, as to whether Congress has essentially delegated that authority, the power of the purse to the president under this law.
Yeah, exactly, Congress has delegated a couple a couple of different statutes to the executive branch, and this is one of them, and it's never been used as broadly as President Trump is using these for tariff they're often this particular statute is used more frequently for sanctions. So the President and his advisors are really betting a lot on his ability and the Supreme Court's willingness to go along with how his interpretation of this particular law.
So in our last minute, Brandon, while we wait to see whether the Supreme Court takes this up and whether arguments are going to begin, what does this mean for the trade regime? What does this mean for countries? Are they sort of in limbo waiting for this to get to sided.
Well, first of all, companies are continuing to pay the tariffs. They're still in effect according to the way the Appeals Court laid down its ruling, and so the levees are still in effect for companies that have to pay them to import goods from overseas. For the countries that are negotiating, the read by some of the analysts that we're talking to is, you know, they're in no hurry now to speed up those talks. They're going to wait and see
how this case plays out. It could be November before the Supreme Court has any sort of hearings, and then, you know, maybe we get a judgment at the end of the year or in the first quarter of twenty twenty six. But it's not going to be resolved in the next couple of weeks. This is a cloud of uncertainty that hangs over the US economy and the global economy really for several more months.
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