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 begin with the latest developments in President Donald Trump's efforts to exert more control over the Federal Reserve. Bloomberg News has learned the Trump administration is reviewing options for exerting more influence over the fed's twelve regional banks that would potentially extend its reach beyond personnel appointments. This comes as the President tries to oust FED Governor Lisa
Cook on allegations of mortgage fraud. If he does, it would give the President an opportunity to secure a majority on the seven person FED Board of Governors. The President has heard here on Bloomberg Radio, defended his decision to get rid of Cook at a White House Cabinet meeting.
She seems to have had an infraction. And she can't have an infraction, especially that infraction, because she's in charge of, if you think about it, mortgages and people that are one hundred percent above board, and it doesn't seem like she was.
That was President Trump speaking at a cabinet meeting. Now Fed Governor. Cook's lawyer is vowing to file a lawsuit over the President's maneuver to oust her for cause from the FED Board of Governors and Nathan.
Former FED Vice chair Lale Brainerd is suggesting there's a real risk of multiple FED district bank presidents getting removed from office next year as a result of politically charged maneuvering by President Trump. Brainer tells Bloomberg she views the president's a tax on Cook in the context of his broader pressure on the Central Bank.
Well, I think the Federal Reserve is an incredibly difficult position here, but you have to remember this is not about an individual governor. This is really an unprecedented attack on the independence of the Federal Reserve as an institution.
Former FED Vice chairl Brainerd warned that any political push to revamp the FOMC would run the risk of stoking inflation and longer term interest rates.
Well, it's turn of markets now, So, because it's the report investors have been waiting for all week. After the closing bell, Nvidia reports its latest quarterly earning, so we get a preview from Bloomberg's Tom Busby.
And Vidia's Q two results expected to show the boom and AI demand continues, Capex continues to grow, and Nvidia continues to thrive with its cutting edge Blackwell chips now with full production and selling well. One worry for the company, though, is China, because of US restrictions on which chips it's allowed to sell there, and Beijing urging companies there not to use the older, less powerful chips that Nvidia does export.
Bloomberg Tech reporter Ian King speaking to Bloomberg TV on Tuesday about this problem.
What is the US government going to do next?
What is the Chinese government going to do next? What products will be allowed to be shipped? That the unfortunate problem is we don't know.
Bloomberg consensus though, calls for revenue of forty six point two three billion dollars on adjusted ernix per share of one dollar in one cent. Tom busby Bloomberg Radio, All.
Right, thanks Tom, as we wait the Nvidio results. Some other stocks making some news this morning, Bloomberg News has learned the Justice Department is widening its probe of United Health. Sources say the DOJ's criminal division is digging into the company's prescription management services, as well as how it reimburses its own doctors. The previously unreported areas of the probe show the scrutiny is broader than was known and goes
beyond an inquiry into possible Medicare fraud. Shares of United Health are down about two tens percent in early trading.
All on the flip side, Lisa shares of Cracker Barrel are surging more than seven percent. The restaurant chains decided to scrap plans for a new logo. Cracker Barrel faced a backlash on social media since changing its vintage logo by removing an image of a man leaning on a barrel while making the lettering more modern. President Trump weighed in yesterday. He posted on social media that the brand should restore its old logo and apologize logo change did
lead to a big drop in the share price. Now, Cracker Barrel says, quote, we think thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have end quote.
They have all right, Nathan, Now let's get to the latest on President Trump's train wars. The US has officially slapped fifty percent on India's exports, doubling duties from twenty five percent as punishment for buying Russian oil. The change took effect at a minute after midnight after Wall Street time. Bloomberg Shrewdy, Shriver Stava reports it's the highest tariff rate of any the country in Asia.
US is the largest market export market for India. It's the biggest trading partner with India, and Indian exporters sold some eighty seven million dollars goods to the US market last year. That's two percent of India's GDP. So definitely, you know, such high tariffs of course shuts down the market for Indian exporters. Now they will have to look for other ways, other markets, newer markets to diversify. So of course that is going to be a huge impact.
Bloomberg Shrewdy Shrivestava reports. The higher tariffs will hit labor intentsive India like textiles and jewelry the hardest. Electronics and pharmaceuticals are exempt for now. That includes Apple's massive new factory investments in India and Lisa.
President Trump is once again warning of serious consequences if Russia and Ukraine don't end their war. Here was the President again at that cabinet meeting heard live on Bloomberg Radio.
I want to get it to and it.
Will not be a world war, but it'll.
Be an economic war. And an economic war is it's going to be bad, and it's going to be bad for Russia, and I don't want that.
The President was asked if he has a timetable for Russian President Vladimir Putin to meet with Ukrainian President Vladimir Zelenski before he would impose sanctions. The President raised the possibility of bilateral talks during his Alaska summit with Putin, but more than a week after that gathering, there is no meeting scheduled between Putin and Zelenski.
In other news, Nathan SpaceX is celebrating a successful test flight of Starship five.
Three two one.
Has heard here live on Bloomberg. The vehicle lifted off from SpaceX's South Texas launch facility called Starbase. It's super heavy booster, successfully separated from the Starship spacecraft as planned, and then splashed down in the Gulf of Mexico. Advertised as the largest and most powerful rocket ever built, Starship is a centerpiece of the company's plans to send huge batches of its Starlink Internet satellites into the Earth's orbit and carry humans to the Moon and eventually to Mars.
Well, I don't know if we could call this out of this world news, Lisa, Maybe we could. Taylor Swift and her football boyfriend Travis Kelcey had a big announcement.
Are you ready for it?
Well, fans were certainly ready for it. They announced in a five part Instagram post They're engaged now. The news has online betting markets soaring. Prediction market website cal She says Gambler has made about eighty thousand dollars worth of bets on when the wedding will be In the hours after Taylor Swift's post on polymarket betters are gambling on when the couple might have a baby, if the singer's going to headline the twenty twenty six Super Bowl halftime show.
Travis kelce is making some news of his own. He's teaming up with American Eagle on a co branded collection.
All Right, Time Now for a look at some of the other stories making news in New York and around the world. For that were joined by Bloomberg's Michael bar Good Morning, Michael.
Good Morning, Lee said. New York City and New York State officials are bristling at President Trump's thoughts of deploying National Guard troops to the city to take on crime. Governor Kathy Okle says she spoke with President Trump. Local said she told the President the additional troops are not necessary.
I was very gracious to say, I'll tell you what, mister President, if I think i need help from the National Guard beyond what I'm already doing, I knew where to find you.
New York Mayor Eric Adams says he does not see a need placed federal troops in the city, saying they are doing an amazing job. Meanwhile, Mayor Adams offered an apology to New Yorkers for the corruption scandals connected to his administration. Adam, speaking to Bloomberg, was asked about a former aid Winnie Greco, giving more than one hundred dollars in a potato chip bag to a reporter for the city at a campaign rally in Harlem. I'm not going to be.
Judged by a red envelope in a paper bag.
I'm gonna be judged by.
How Phil Punch of how to improve the lives of New Yorkers.
It was a stupid thing to do.
I don't understand the conversation you had with the reporter.
I don't have the history of it. It's not something that we would do in our campaign.
I made that clear.
I don't know what that was about.
The damaging news story came as seven people, including Adam's former top aid ingrid Lewis Martin, were indicted on bribery and corruption charges. Adams said he has no plans to drop out of the November election. Polls show he is in fourth place in a five person field, behind Democratic nominee z Around Memdani, former Governor Andrew Cuomo, and Republican Curtis Sleewab. The Israeli military says it's double strike on a guy as a hospital that killed twenty people targeted
what it believed was a Hammas surveillance camera. The dead included five journalists. Global News twenty four hours a day and whenever you wanted with the Bloomberg News. Now Michael Barr and this is Bloomberg. Thanks Michael.
Time now for our Bloomberg Sports update, and for that we bring in Dan Schwartzman.
Thanks Nathan. In Major League Baseball, the Mets beat the Phillies on a Brandon Nimmo walk off Single six to five. The Yankees knock off the Nationals five to one. Elsewhere, the Red Sox shout out the Oriols five nothing. Blue Jay's fault to the Twins seven to five. Brewers slip past the Diamondbacks ninety eight. The Tigers loose to the a seven to six. The Dodgers double up the Red six to three. The Texas Rangers getting some bad news as Nathan eval Duell missed the rest of the regular
season due to a rotator cuff strain. On the season, the righty is eleven and three with a one point seven to three ERA. At the US Open, two time Grand Slam winner Cocoa Off struggles to get past Alight tol Mianovich in three sets in the first round. Meanwhile, both Egash Fiantek and Amanda Nisimova advance and trade sets in the Mendroup. Top seed Yonik Center, Alexander Zverev, Alex Demnar, and Tommy Paul all move on to the second round. 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 Sirius Exam and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump says he is ready for a legal fight over his effort to fire Federal Reserve Governor Lisa Cook, and he's already talking about the influence he hopes to wield over Central Bank policy.
We'll have a majority very shortly, So that'll be great once we have a majority, and housing is going to swing, and it's going to be great. People are paying too high an interest rate.
That was President Trump speaking at a cabinet meeting. Herd live on Bloomberg Radio and for more. We're joined by Bloomberg's Critty Gupta. So Critty, the President is making it plain he really has that this is about trying to secure a majority on the Fed Board of Governors. But now we're hearing that he's looking for ways to extend his influence beyond the board. What are we hearing.
We're hearing that there's a lot of concern about how he can actually do that. Remember, there are seven members of the Federal Reserve Board, but there are other voting members as well, and there's a clear question here of just how much authority he actually has in terms of firing as opposed to replacing, as opposed to influencing policy.
And we've had kind of touch points of this throughout history with various presidents, but never to this extent, and never an outright question of to what extent some of the replacements of the Federal Reserve come at the discretion of the president. And the question is they're basically looking at the legality of how they can do that, not
just with Lisa Cook, but with others as well. One of the key things that they've named in terms of a potential Cook replacement, if that does indeed go through and is deemed appropriate by the Supreme Court, is the idea of moving around temporary seat. So, for example, Stephen Amia and who is the current nominee to replace Adriana Kugler after her resignation, a thought that Donald Trump had proposed in the last twenty four hours is moving him into Lisa Cook's seat for a longer her longer term
until twenty thirty eight. Again, the legality of that given Adriana Cougler's term ends in January, and that temporary position will be there until January is also up for debate, so his team is reported to be looking into these matters and is looking into ways that they can get around what tradition suggests. Yah.
We've heard some concern raised by a former FED Vice chair, Lyle Brainerd in an interview on Bloomberg Radio and Television, saying that even regional bank presidents could be worrying about their jobs as well. Could the president go after the regional banks when those positions are decided on by the banks themselves.
That's the key question here, and that's the speculation. I love what Ail Brainerd also had said about the way that you can interpret this in the markets, which is that this idea of FED independence's idea of FED credibility even on the regional level, is a crucial one because that's where the market is freaking out on the bond
perspective from the long end. And she made the very clear connection that if you undermine that independence, that is going to show up in the very part of the bond market curve that influences housing, which, as we also know, in the last twenty four hours, Donald Trump made it very clear that he is trying to bring down housing prices. So this is a big debate now in the market community of whether or not these moves are actually as effective as he hopes them to be.
You mentioned the freak out in the bond market, but you look at the futures contracts this morning, not a whole lot going on. You have to wonder whether investors on that side of the market are just bracing for what we hear from Nvidia later today.
Absolutely, it feels like the debate about whether the tech story or the bond market fed story Trump's pun not intended is the bigger story for this week, because not only do we have video, we have PCE data on Friday as well, but and video is really crucial. Look, this is the A plus plus student trying to impress
a market that is expecting the world from it. Some some key pieces here are not only going to be where it's getting its revenue from is it the hyperscalers, but also what it's going to say about the development of its Blackwell chip and the development of its H
twenty business, specifically to China. Since we had kind of that start and stop over the summer about whether or not they could ultimately export those tips to China with the US government and also making it clear that China, at least from a regulatory authority perspective, has discouraged some of its local use of that chip as well. What that read through is into Nvidia's bottom line that's of key importance. Today.
This is Bloomberg Daybreak, 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 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