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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, this could be a big week when it comes to economic personnel. President Trump says he will announce a new Federal Reserve governor and a new jobs data statistician in the coming days. On Friday, one of the FED seven governors, Adriana Kugler, said she intends to step down early. On his way back to the White House for a weekend in Bedminster, New Jersey, the President said he would be filling Coogler's seat soon.
No, I have a couple of people in mind. I'll be announcing somebody for the filling of the person that left. A woman left, as you know, who is a I guess a Biden appointment, either Biden or Obama, but I think a Biden appointment.
And she left early.
And I think she left because she agreed with me on interest rates, and yet they were on the other side of the ball, right. So I'll be announcing that probably over the next couple of days.
With FED Governor Adriana Kugler's departure, President Trump now has the opportunity to appoint a governor who more closely aligns with his preference for lower interest rates.
Well Nathan.
The changes on the Fed Board come as a major negative. Revision to jobs data has upended views on the weakness of the labor market. The revised figures make the past three months the worst for job creation since the pandemic. After the report, the White House fire the Bureau of Labor Statistics boss Erica mcintarfer. Whitehouse National Economic Council Director Kevin Hassett said the firing was because the revision was poorly explained.
The President wants his own people there so that when we see the numbers, they're more transparent and more reliable. And if there are big changes in big revisions, we expect more big revisions for the job data in September, for example. Then we want to know why. We want people to explain it to us.
Kevin Hasset made the comments on NBC's Meet the Press, and you can catch the program every sun day right here on Bloomberg Radio.
This morning, Karen, workers at Boeing Saint Louis area defense factories are on strike for the first time in almost three decades. The walkout by almost thirty two hundred machinists come after union members rejected Boeing's modified contract offer. Julie Johnson covers the company for Bloomberg.
Boeing Defense in Space has built fighter jets in Saint Louis for a very long time. They also support some of the commercial jet programs out of there, but it's primarily military aircraft and munitions and missiles are also built there.
Bloomberg's Julie Johnson says Boeing's offer would have raised wages by twenty percent and boosted retirement contributions. The last time the union went on strike was nineteen ninety six. That stoppage lasted ninety nine days. This morning's shares of Boeing are down a half percent, well Nathan.
In Europe, UBS shares are down about seven tenths of Upper sent the Swiss banking group a great to pay three hundred million dollars to settle a mortgage related case with a US Department of Justice London and get the latest with Bloombery's Caroline Hegger.
It's another item ticked off UBS's list of legal issues, partly inherited from Credit Suez, the bank that it rescued in twenty twenty three. In a statement, UBS says this three hundred billion dollar payment will resolve all the outstanding payments from a settlement that was reached in twenty seventeen from residential mortgage backed securities dating back to two thousand and six seven. EBS says that it expects this to have a positive impact on its third quarter results, as
it will be able to release a contingency liability. The agreement closes UBS's biggest US legal headache. In London, callin hepgar Bloomberg Radio.
Okay, Caroline, thank you. Let's get to the latest on trade. The US and China have eight days until their tariff truce expires. US Trade Representative Jamison Greer is sounding cautiously optimistic after last week's talks in Stockholm. He says rare earths were a key topic in the discussions for.
The United States. We're focused on making sure that the flow of magnets from China to the United States and the adjacent supply chain can flow as freely as it did before the control and I'd say we're about halfway there.
US Trade Representative Jamison Griertel CBS has faced the Nation. It will be up to President Trump whether to extend the tariff truce with China beyond August twelfth. Face the Nation can be heard every Sunday on Bloomberg Radio.
Nathan now to a political issue in Texas that's caught the nation's attention. Democratic lawmakers in the Lone Star state have left the state to keep Republicans from redrawing their congressional map. Last month, the Justice Department determined four of Texas's House districts were racially jerrymandered. President Trump then called and Republicans to redraw the map to add five GOP seats ahead of next year's midterms. Democratic Illinois Governor JB. Pritzker is blessing the Republicans.
Trump came up with a new scheme rig the system by ramming through a corrupt mid decade redistricting plan that would steal five congressional seats, silencing millions of voices, especially.
Black and Latino votes. Let's be clear, this is not just rigging the system in Texas. It's about rigging the system against the rights of all Americans.
Illinois Governor JB. Pritzker spoke at a news conference alongside many of the Texas Democrats saface fines of five hundred dollars a day for leaving the state legislature short of a quorum. Texas Governor Greg Abbott says a court could decide whether the lawmakers have abandoned their office, allowing him to swiftly replace them. State Attorney General Ken Paxton posted on x that the lawmakers should be arrested and brought back to the capital.
Let's turn back to the markets now, Karen. Futures are higher as we kick off the trading week. On Friday, stocks sold off after the week jobs data. The S and P five hundred fell one point six percent, while the Nasdaq lost two and a quarter percent. Morgan Stanley is recommending investors buy stocks on any pullbacks. In a note, strategist Mike Wilson said, quote, We're buyers of pullbacks and
bullish the next twelve months end quote. He added that he thinks the Fed will eventually transition to interest rate cuts.
Well Nathan stocks in Switzerland and falling half a percent on concerns President Trump's punitive thirty nine percent export tariff on the country will denned corporate profits. The market was closed Friday, for all holiday, so prices had not yet reflected the tariffs or the President's push for drug makers to lower prices.
And Karen Oil is down more than one percent this morning. OPEC Plus has closed a two year chapter in its oil strategy, completing a series of oil production increases, but delegates emphasized that the next move could be a cut or a hike.
Time now for 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 John Tucker. John, Good Morning, Good morning.
Karen. Blackstone reopening its New York headquarters this morning after keeping the office shuttered the wake of that shooting spree that killed four people, including one of its senior executives last week. The world's biggest alternal advansset manager also gave to have the option to work remotely for the entire week. Official to say it was a miracle nobody was hurt. A large concrete and steel awning collapsed onto the sidewalk
in Brooklyn Sunday. The yawning connected to the Hotel Saint George, which opened more than one hundred years ago. A three point zero magnitude earthquake shook out the area outside New York City Saturday night, with the epicenter rooted in Hasburg Heights, New Jersey. People across the tri state area reported feeling tremor shortly after ten pm.
We're we're seeing my living room in the whole house shoke.
Nobody was hurt. Republican hopes of holding on to power in the Senate after the twenty twenty six midterms are receiving a boost from powerful, well funded super packs. That story from Bloomberg's Amy Morris.
New filings show large sums of cash flowing to aid Republican candidates in states including South Carolina, Louisiana, Florida, Michigan, and Maine. Superpacks may play a significant role in influencing the outcome of the twenty twenty six primaries and general elections, when control of the House and the Senate are up for grabs. In other FEC filings, Elon Musk donated five million dollars apiece to the Congressional Leadership Fund and Senate
Leadership Fund, which aid House and Senate Republicans respectively. In Washington, Amy Morris, Bloomberg Radio.
I'm a WKRP.
And Simpson Lannie Anderson, best known for her role on the radio station sitcom WKRP in Cincinnati, has died. She was seventy nine. Her publicist said she died Sunday in Los Angeles after in acute prolonged illness. Global News twenty four hours Day and whenever you want it with Bloomberg News Now, I'm John Tucker. Vic's Bloomberg Karen.
All right, John Tucker, thank you time now for the Bloomberg Spores update. Here's John stash Hour, John, good.
Morning, you want to care?
In?
The Miami Marlins had previous series wins with the Yankees. In fact, they once won a World Series from them, but they had never swept. The Yanks had that wild thirteen to twelve win Friday night, two nothing shut out Saturday, and then they got to Luis Heel early on spoiling Heels season debut. Later put the game away.
That's a shot deep right field, quick back his belcher, He looks up and it's gone. Kyle Stowers has done it again, this time a three run shot off the left, six.
One Miami on Marlins TV. Miami won seven to three. To spite the difference in payroll, the Yankees is more than double the sweep not all that surprising. Since June thirteenth, the Marlins record is thirty and fourteen. The Yankees record in that time is eighteen and twenty seven. Are now in third place. Red Sox a weekend sweep at Fenway. The West leading Astro Socks won six to one behind
Lucas Giolito gave up just three hits. He's now eight and two at City Field and ex Red Sock dd damage to the Mets.
He swashes out on the right field. Oh my goodness, headed for those second duck, a three run Classic Devers home run, and it's four to one Giants and he is floating around the bases. That's big boy, big boy to end.
Wow.
Giants TV calling the Raffie Devers homer. Day after the Mets won twelve to six. The Giants won twelve to four, but Phillies topp Detroit two to nothing in the Phils takeover first place. The first ever MLB game in Tennessee and the first of a NASCAR track postponed from Saturday due to ragin announced crown of ninety one thousand, so the Braves beat the Red Spot to two. The Wyndham golf in Greensboro, won by American Cam Young. He finished twenty two under par, one by six shots at one point,
led by nine. It's his first PGA win. John Station went Bloomberg Sports.
Coast to coast on Bloomberg Radio, nationwide on Sirius Exam and around the world on Bloomberg dot Com and the Bloomberg Business opp This is Bloomberg.
Good Morning.
I'm Nathan Hager. President Donald Trump is getting ready to put his stamp on the Federal Reserve and the agency that puts out the monthly jobs report. The President says he's going to rename replacements for FED Governor Adriana Kugler and his fired Bureau of Labor Statistics chief Erica mcintarfer. Very soon.
We'll be announcing a new statistician sometime over the next three four days. We had no confidence. I mean, the numbers were ridiculous what she announced.
That was the President speaking to reporters on his way back to Washington from Bedminster, New Jersey.
This morning.
We're joined by Bloomberg News Senior editor Bill Ferries. And Bill after all the pressure that we have seen from President Trump on the Federal Reserve, now with the firing of the BLS chief, we go into a pretty unprecedented territory.
Good morning, Yeah, good morning.
Yeah, it's true. It's a highly unusual move to go after the head of essentially the government's chief statistics bureau. The BLS has long been considered the gold standard when it comes to collecting this data, and there have been challenges with getting enough responses to the data, and perhaps that has explained some of the revisions that we've seen. But revisions have been typical for decades. So it does seem the President is reacting more. He's going after the
messenger here because of frustrations over the message. But as you mentioned, there's also a heap of pressure on the Federal Reserve and Trump getting a chance to shape it a few months earlier than he probably expected.
To, considering that Adrona. Kugler's term wasn't due to expire until January. The President says he thinks that Kugler stepped aside because she agrees with him on the need to lower interest rates. Is that the sense that we have that that's the reason why she's stepping aside.
Yeah, there's no, there's really no evidence of that in terms of her previous comments or her stance at the these chief these key meetings that they have on rates.
I do think though it obviously gives the President a chance to get someone in onto the FED who shares his view, at least philosophically, that interest rates should be coming down and coming down faster, and perhaps even basically put in someone in the job who would be his replacement for Jerome Powell when Palell's term expires in May.
So could we get begetting to a situation where we could see something like a shadow FED share once this announcement is put in place here. I mean, I've got to imagine there's going to be a lot of attention on the Senate confirmation process for whoever replaces Governor Coogler.
Yeah, certainly, and that process will take you know, will take some time. So it's not going to be an immediate thing, but there's going to be you know, as soon as that name comes out, there's gonna be a lot of scrutiny. There's going to be a lot of
look at any papers or public comments. I mean, we may very well when you look at some of the people who are likely on the short list we're talking about, you know National Economic Council director Kevin Hassett, former FED Governor Kevin Walsh, they would possibly be on that list. There's always been speculation that Scott Besst, the Treasury Secretary,
could be on it. So you know these people, these are people who have been very supportive of the President, who have backed his idea that rate should come down. Powell is still in that job until May. I mean he's the one who will be making the arguments in those policy committee meetings, but there will certainly be the market will be pricing in changes that come after Powell leaves.
On top of the pressure from the President, on the FED and the BLS, Bill, Boeing is facing some rare pressure from its defense factory workers this morning.
That's right, we're seeing a real unusual strike by Boeing workers. In this case, it's the first time in almost thirty years workers at the Saint Louis factories striking after they reach to the company's contract office offer. We're talking about thirty two, one hundred machinists who walked off the job. The union's last strike was about ninety nine days. I mean Boweing listen. Bowing has had several very difficult years.
It's been caught up in the spat with China. They weren't able to sell a lot of their planes to China in that time. They had the crash of the Max several years ago, so this kind of comes on top of a lot of tumult at Boeing. So I think they'll be looking to try to resolve this as soon as possible and get back to work. But it is, you know, it's been almost thirty years, so we're almost in unprecedented territory.
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