Zelenskiy and EU Leaders Hold Key Call with Trump; Markets in Record Territory

Bloomberg Audio Studios, Podcasts, Radio News.
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 effort to
end the war in Ukraine. President Vladimir Zelenski and European
leaders will hold a call with President Donald Trump later
today ahead of the President's Friday summit with Vladimir Putin
in Alaska. Here's Lenski speaking through an interpreter. Would it's
impossible to talk about Ukraine without Ukraine and no one
will accept that.
But they cannot agree on anything about Ukraine without us.
That was Ukrainian President Vladimir Zelensky ahead of his call
today with President Trump and European leaders. For more, let's
bring in Bloomberg's Ewan Pots in London. Ewan, what's the latest.
Nathan and Karen. President Putin is demanding that Ukraine give
up the two regions that form the Donbas as a
precondition to a CEASEFIA. That would mean Ukraine enforces withdrawing
from nearly three and a half thousand square miles of territory.
Ukraine's lot of Misslenski, who's in Berlin today says he
won't do that. European leaders who hold a call with
President Trump later today say that any piece agreement must
respect international law and that international borders must not be
changed by force. As Friday's Trump poot in summit gets
ever closer, there are a few signs of agreement between
the warring parties in London. I'm YOUW and pots Splinberg.
Radio, all right you and thank you. We turned now
to the markets where stocks begin the day in record territory. Yesterday,
the S and P five hundred rows one point one percent,
while the tech heavy Nasdaq one hundred gained one point
three percent. The rally came after the latest consumer price
index report. Stoke bets that the FED is virtually certain
to resume cutting interest rates next month. Jay Berry is
JP Morgan's head of Global rates Strategy.
We know the FED as an asymmetric reaction function and
seems to be more concerned about labor market weakness than
inflation being above its target. And with the slowing we've
seen in private pyrole growth, it kind of gives the
Green like to go back and think about the FED
cutting in September, even with inflation very far away from
the fed's target.
JP Morgan's J Barry FED fun futures are pricing in
a ninety percent chance of a rate cut in September.
Well, while most traders think a quarter point cut is
all but a lock Karen. Treasury Secretary Scott Besson says
he's open to a fifty basis point cut. He spoke
with Fox Business after the CPI report.
If we'd had the original number, if FED could have
been cutting in June July. So I think the real
thing now to think about is should we get a
fifty basis point ring cut in September to make up
for the delay and the lack of data.
As for the nominee to succeed FED Chair J. Powell,
Treasury Secretary Scott Besson says, there's a very wide net
being cast and the President Trump has a very open
mind on Nathan.
The White House pressure on the FED is not stopping there.
President Trump said he's considering a lawsuit against FED Chair J.
Powell over cost overruns at the Central Banks headquarters renovation.
The President made the comment on social media. We asked
White House Trade Advisor Peter Navarro whether the threat is serious.
Yes, yeah, yeah, I mean, look, you get your attention.
It's like, what is he doing there?
He's spending the taxpayer's money on a on a just
why not watching costs?
It's beautiful.
He contrasts with him the way Donald Trump does things
in the White House. He's undergoing a major renovation. He
watches every penny White how is Trade Advisor Peter Navarro
spoke with Joe Matthew on Bloomberg's balance of power. President
Trump has repeatedly called on Powell to resign, but he's
backed off threats to fire the chairman, while Secretary Bessen
to leads this search for his replacement.
Well Karen. Tariff revenue in this country did hit a
record last month, but it wasn't enough to prevent a
widening in the monthly budget deficit. Customs duties climbed to
twenty eight billion dollars in July, at two hundred and
seventy three percent surge over the same month last year,
but the monthly budget deficit came in at two hundred
ninety one billion, or ten percent more than the same
month a year before, after accounting for calendar differences.
A political fight in Texas could come to a head
this weekend in Nathan. Democratic lawmakers who left the state
to block a vote on a new congressional map now
say they're considering their options. ABC News is reporting they're
planning to return to Austin as soon as this weekend.
The Texas State House failed to reach a quorum again yesterday.
Speaker Dustin burrough says that's keeping lawmakers from addressing other
pressing issues.
We cannot take up the critical flood response legislation scheduled
for our floor.
Today, Texas Sounds Speaker Dustin Burroughs the Democrats could try
to demand that the legislature prioritize the flood response over redistricting,
but they hold little power in the GOP controlled House.
The special session ends on Friday. If lawmakers can't reach
a quorum by then, Governor Greg Abbott has said he'll
keep calling special sessions until the Democrats return well.
Karen Elon Musk has suffered a legal set back. A
federal judge has ruled the world's richest man must face
claims by Open AI that his attacks on the startup
in court and the media amount to a quote years
long harassment campaign. This is the latest twist in a
court fight that's played out since last year, when Musk
accused open ai of abandoning its founding purpose as a
charity by accepting billions of dollars in funding from Microsoft
starting in twenty nineteen. The year after Musk left open
AI's board, he launched Xai, a competitor to open Ai
in twenty twenty three.
Let's take a look at some stocks on the move
this morning. Nathan shares of Kava plunging twenty three percent.
The fast casual Mediterranean chain trimmed its annual sales out
look after a sharp deceleration in the second quarter. Core
Weave shares are down nine percent. The New Jersey based
company delivered a disappointing earnings outlook, reflecting margin pressures from
a rapid AI data center expansion and Venture Global shares
are up five percent. The natural gas export one a
major arbitration case over oil giant Shell. Time now 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 Maher. Michael, good morning.
Good morning Karen. Some of the eight hundred National Guard
members deployed by the Trump administration to assist with law enforcement.
Arrived in Washington, d C. President Donald Trump called DC,
without substantiation, a lawless city. Muriel Bowser pledged work alongside
the federal officials mister Trump has tasked with overseeing the
capital city's law enforcement.
The executive order is pretty clear, and so is the law.
The President has the authority by virtue of the statute
to request services.
Mayor Bowser insists the police chief will remain in charge
of the department and its officers. The mayor also points
to official statistics showing violent crime down twenty six percent
since last year, now at a thirty year low. New
York City Mayor Eric Adams rejected President Trump's suggestion that
the federal government could take over the city's police department.
Adams says crime in New York City is under control.
We don't need anyone to come in and take over
our law enforcement apparatus. They have to find this police
department on the globe. Mayor Adam says crime in the
city is at the lowest this year outside of the
two years of the pandemic. Harvard University has signaled it
is willing to pay five hundred million dollars for workforce
training programs as part of a settlement with the White House.
A deal between Harvard and the Trump administration would bring
the university closer to ending a month's long standoff that
began over accusations that Harvard failed to confront campus anti semitism.
United Launch Alliance launched its first national security mission Tuesday
with the newly developed Vulcan rocket put satellites into high
orbits above the Earth. ULA launched two military satellites into space.
ULA is one of just three companies allowed to launched
the most difficult and most sensitive missions for the Defense Department.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now. Michael Barn, This is Bloomberg. Karen.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update. It's brought to you by Flushing Bank
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John, Good morning, Good morning, Karen. It was nine years
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They'll also host the Cavs on Christmas. John stash Ewert,
Bloomberg Sports, Karen.
Nathan stay with us more from Bloomberg Daybreak coming up
after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump is preparing
to head to his Alaska summit with Vladimir Putin with
the Russian leader, sounding confident that he is dominating on
the battlefield against Ukraine. But before the President speaks with
Putin on Friday, he's due to hold a call with
Ukrainian President Vladimir Zelensky and European leaders today. Ukrainian lawmaker
Kira Rutik is looking ahead to Friday.
The best outcome would be that President Trump wouldn't take
yet another public humidiation from Russian President Putin, and that
he will get finally annoyed and will impose sanctions that
he has promised.
Ukrainian parliament member Kier Rudik spoke on Bloomberg Surveillance this morning.
We're joined by Bloomberg News Chief Asia correspondent Rosalind Mathieson Roz.
Good morning.
We know that Ukrainian President Zelenski has said his constitution
does not allow him to concede territory to Russia. What
can we expect when it comes to his call today
with President Trump? Good morning, Good morning.
Well, it's interesting that Zelensky is actually seemingly going to
be in Germany alongside the German Chancellor for this call today,
as you say, with the US President Donald Trump and
Vice President Jdi vance and this is really the last
opportunity for these European leaders, alongside Zelensky's this is Germany,
the uk Italy and more to really press Donald Trump
to make the case before he goes into this meeting
with Vladimir Putin to not over commit or pre commit
to too many things in the absence of Ukraine at
that meeting, and saying that there needs to be a
very slow and careful move towards any agreements or understandings
around land that preliminarily, this just needs to be an
initial conversation to perhaps feel each other out face to
face and to get a stronger sense of where the
redlines are for Russia, but also for Donald Trump not
to rush in in that minute and agree to whatever
Vladimir Putin may put on the table. And particularly the
concern there is that is there going to be an
early stage agreement between the two of them which requires
Ukraine indeed to see that land.
That mirror some of the rhetoric we've heard from President
Trump in recent days. There's been sort of downplaying expectations
for the summit on front, saying that he wants to
feel out President Putin. Could it be that Europe and
the president could be on the same page heading into Friday.
Well, certainly Donald Trump probably is aware that given the
last time he met with Vladimir Putin, it didn't necessarily
end up being so successful for him. For Trump, that
he maybe needs to be a bit more careful going
into this conversation. And he's shown some frustration with Vladimir
Putin in recent weeks, said that despite all their phone
calls and their conversations, that he felt in a way
that he was getting played a bit by Putin dragging
the chain on agreeing to a ceasefire. But that's one thing.
It's very different for the two of them to be
sitting down together and in the minute, you know, Vladimir
Putin is quite an astute operator, and who knows how
that meeting might go. And that again is the concern,
and that is why you're seeing these phone calls today
that yes, Donald Trump is casting this now as more
of a feeling out exercise, but there is still risk
in the minute that he does go ahead and agree
to things that Ukraine says that they cannot accept.
Some of that concern has been sounded out, with President
Zelenski even saying that Russia has made some surprise advances
on the ground in recent days and pushing deeper into
Ukrainian territory. How could that set up what we get
on Friday? What do we know about the situation on
the ground in eastern Ukraine at this moment.
Well, that's right, Zelensky is casting. This is Russia trying
to get into a positive position, the most advantageous position
for itself, going into this meeting and basically saying to
Donald Trump, this is Russia, you know, saying to Donald Trump, well,
we'd have this territory anyway, so you may as well
hand it over to us, rather than having us fight
for it for a few more months and getting there.
And certainly Russia has been making some gains on the
ground again, this is primarily in the Dombas region, and
you know, pushing forward, but not pushing forward massive. It's
been a real grinding wall now for quite some time.
They are making pockets of advances and certainly they seem
to have the advantage, but they're not gaining large amounts
of territory at Ukraine obviously is having very little success
pushing them back. But it seems to be that Ukraine
sees this as an effort by Russia to say we
do have the advantage, we would get this territory eventually,
and better just to agree to hand it to us
now versus having months and months of fighting to get there.
This is Bloomberg Daybreak, your morning podcast on the stories
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