Trump Tariff Court Ruling; Nestle CEO Ousted

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today hearing.

We begin with the latest on trade, because there is new uncertainty on that front as traders prepared to return from the holiday shortened trading week. A federal appeals court ruled on Friday that President Trump exceeded his authority by imposing global tariffs through an emergency law, but the court is allowing those levies to stay in place while the

He likes to show force, right, and the emergency powers gave him that, but he does have other mechanisms. Tom meant some portion of those tariffs. He might not be able to do all of them with every country that he had had under a tarf regime. Yes, but programs like you know Section three oh one and others give him the ability alone. You know the power of the executive branch to implement some of those tariffs.

Bloomberg News contributor Rick Davis tells Bloomberg's Joe Matthew that the Trump administration could potentially turn to the Supreme Court for a final ruling, or could let the Court of International Trade revisit the matter.

Even after this ruling, Nathan, President Trump says India has offered to eliminate all its tariffs in response to new US trade penalties. Neither the White House nor Indian officials have confirmed any new trade discussions, but this comes days after the White House imposed fifty percent levies on Indian goods as punishment for its purchases of Russian oil. President Trump's trade advisor Peter Navarro is once again attacking Indian Prime Minister in Arrender Remodi.

It was a shame to see.

Mody getting in bed as the leader of the biggest democracy in the world with the two biggest authoritarian.

Dictators in the world.

In Putin Assi in pick that doesn't make any sense.

Minos Trade advisor Peter Navarro spoke as Mody declared that India and Russia have a special relationship at the start of a bilateral meeting with Russian President Vladimir Putin in China.

Well.

Meanwhile, Karen Bloomberg News has learned that Brazil's President Luis and Osio Lula de Silvas convening a virtual meeting of bricks leaders next week to discuss President Trump's trade policies. Sources tell us Lula's aiming to rally support for multilateralism among fellow emerging market nations. The US has imposed varying tariff rates across the bricks, and Lula reportedly does not want the meeting to turn into an anti US summit.

Meanwhile, back in Washington, Nathan Congress is coming back from its summer recess, and the Senate is likely to meet its target to fast track Stephen Myron's confirmation to the Federal Reserve before its next rate setting meeting in just over two weeks. Bloomber's Amy Morris has more from Washington.

President Trump appointed Myron too to fill the last few months of a term that was unexpectedly vacated by Fed Governor Adriana Kugler. Myron can expect a grilling over Trump's economic policies and efforts to influence the FED, and could face questions from both Democrats and Republicans. The Democrats privately acknowledge they can't block Myron's confirmation on their own, and under the rules they can only hold it up briefly in the committee, maybe for a few days on the

Right, Amy, thanks, Before that hearing, Current FED Governor Lisa Cook is still fighting President Trump's bid to oust her. A federal judge spent about two hours on Friday questioning lawyers for Cook and the Trump administration on whether the President has caused to fire her over allegations of fraud on her mortgages. The judge ended the hearing without a ruling. Cook's attorneys are expected to file another legal brief today addressing the judges questions and the administration's arguments.

Nathan, Let's turn to the markets.

Now.

In gold trading at a record driven by expectations for a FED rate cuts and concerns of our central bank independence. The price top three five hundred dollars an ounce as investors loaded up on the safe haven asset, and the latest run comes after fedhaer Jerome Powell cautiously open the door to a reduction and as Jackson Hole comments, due to a weakening jobs market.

Well.

Meanwhile, Karen futures are trading lower, with the record breaking stock rally facing its next test later this week. In the August jobs report, former Kansas City Fed President Esther George says a week number does raise the chances for a kut.

The economy looks to be performing pretty good. The decision is do they see something ahead that suggests the economy will slow and away the job market will be damaged in a way that requires them to ease policy at a time when inflation is holding in there pretty strong.

Former Kansas City Fed chief Ester George appeared on Bloomberg Television ahead of this Friday's jobs.

Report, Nathan and Geopolitics. Russia's gas from has signed a legally binding agreement to build the Power of Siberia two gas pipeline at China, and what's being seen as a major political win for the Kremlin. Discussions around the mega project have been installed for years, but Russia has been eager to advance the deal to compensate for lower European deliveries following its invasion of Ukraine. The news comes amid days of meetings at the Shanghai Cooperation Organization Summit.

Also in Asia, Karen, Japanese Prime Minister Shigiru Issheba's key ally, Secretary General Hiroshi Morriyama, intends to resign to take responsibility for an election Setbackshiba's repeated his intention to stay on despite calls within his party to see him go, and he has apologized for the many seats that his ruling Liberal Democratic Party lost in July.

And just this morning, Nathan and North Korean leader Kim Jong un arrived in China to attend a military parade in Beijing. It's a rare overseas visit that underscores Kim's ties with President Shijin Ping and Russian leader Vladimir Putin. Marks Kim's first trip abroad since he traveled to Russia in twenty twenty three. In his first trip to China since January twenty nineteen.

And a plane carrying European Commission President Ursula Vonderline was disrupted over the weekend. Karen authorities think it was Russia interfering in Bulgaria. We get more from Bloomberg Suzanne Lynch in Brussels.

The plane carrying Vanderlon, which was landing in Bulgarian on Sunday as part of this four day tour, did land safely, but it was the subject of GPS jamming. Now Bulgarian authorities have said that this is the fault of Russia, and in fact a lot of the ball of countries have reported an increase in this kind of activity.

Bloomberg Suzanne Lynch says Vonderlin was touring the EU's eastern most states on a campaign to build up military infrastructure.

There's a major corporate news in Europe. Nathan Nestley has dismissed its CEO, Lorent Fres after only a year, due to an undisclosed workplace affair with a direct subordinate. We get more with the Bloomberg's Jennifer Creary.

So we know that there was an internal investigation from the company and this was after the matthe was breeze to the company via an internal platform called speak Up. The company couldn't substantiate the allegations after that, and so they brought in an external council to conduct another investigation and that is the result that we see.

Today Bloomberg Jennifer Creary says Nesley has named Philip Navratill as Frex's replacement. He currently runs in Nesley's, an espresso coffee brand, and checking shares of Neslei this morning, they're down more than one percent.

And In more coffee news, Karen Starbucks says its fall product launch drove a record week of sales and that of course, included the return of the pumpkin spiced latte. Starbucks CEO Brian Nichol is leading a turnaround at the US coffee giant that's focused on improving customer service, revamping the menu, and making the stores more welcoming.

It's time now for look at some many of their stories making news in New York and around the world, and for that were joined by Bloomberg's Michael Barr Michael, good Morning.

Good Morning, Karen. Nine former CDC directors are calling out Health and Human Services Secretary Robert F. Kennedy Junior in a collective op ed. The former CDC directors who served Republican and Democratic administrations from Carter to Trump. Writing in a New York Times op ed that Kennedy has quote severely weakened programs designed to protect Americans from cancer, heart attacks, strokes,

Have given paid time off for over a million workers, ten days off, the biggest city.

In America to ever do it.

This is the labor movie you all, Mayor Johnson says. President Trump has shifted the largest concentration of wealth into the hands of the few. Meanwhile, Homeland Security Secretary Christy Nomes spoke about immigration enforcement operations in any of the cities beyond Chicago. She told CBS has faced the nation. Nothing is off the table.

We have hundreds and hundreds of agreements with local law enforcements, sheriffs, city administrators and mayors across the country that want to solve problems.

CBS has faced the nation can be heard on Bloomberg Radio. President Donald Trump says he's awarding former New York commit Mayor Rudy Giuliani the Presidential Medal of Freedom, announcing the honor two days after his longtime political ally was badly injured in a traffic accident. Was once allouded for leading New York after the September eleventh attacks, and later sanctioned by courts and disbarred for amplifying false claims about the

Thanks Michael. Time now for our Bloomberg Scores updated form that we bring in John stash.

Hour, Thanks Darry Bill. Belichick's college coaching debut did not go well as North Carolina Tariill scored a touchdown four minutes ten. By the time they scored again, TCU was ahead forty one to seven. The Horn fronts one in Chapel Hill forty eight to fourteen. US opened Coco Golf lost to the fourth Mountain Naomi Osaka, four time Grand Slam champion. This will be her first quarterfinal since twenty twenty one. Quarterfinals begin today. Novak Djokovic plays Taylor Fritz tonight.

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.

Wall Street is heading back to a holiday shortened trading week in a traditionally difficult month for stocks. Already, investors are facing new uncertainty when it comes to President Trump's trade policies. Country by country tariffs have been declared illegal in court, though a judge is keeping them in place for now. For more, We're joined by Bloomberg's Valerie Titel, and here we are Valerie. Futures pointed lower this morning.

Good morning, Good morning, Nathan.

Well, there is some nuance to this story here, one of which being we're looking at the timeline of when this case will now be presented and decided upon by the Supreme Court. If the Supreme Court does decide to prioritize this, they could have the case ruling at some time beginning of next year. But if they don't, we could be waiting almost a year for our final decision on the Supreme Court. So that maybe has given some

Although it's interesting, even after this court ruling, we saw this post on social media from President Trump saying that India's offered to cut its tariffs on US goods to zero after the President posted fifty percent tariffs on India over its purchases of Russian oil. We've got a lot going on in China meetings between India and Russia. There is that part of what's going on.

Well, it wasn't clear when exactly this offer from India was made and whether the White House even plans to reopen trade talks with India. But this was Trump posting on social media. Maybe perhaps in response to India's Modi meeting, China's Shijing Ping and President Vladimir Putin. There were some images yesterday of all of them holding hands, So perhaps he wanted to make sure that he had his final

And is if trade uncertainty weren't enough in our last minute, We've got another major catalyst coming up from markets at the end of the week in the August jobs report. How much is this going to seal in expectations for rate cut.

It's a big one, especially after Jerome Powell re emphasize how important the labor market data is. This Friday, we have non farm payrolls consensus is for seventy five K print and for the unemployment rate to tick higher to four point three percent, And with the market already pricing in a ninety percent chance of that September rate cut, a week print could perhaps have the market pricing in further.

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 Day.

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