Trump Tariff Court Ruling; Nestle CEO Ousted

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 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
case proceeds. It says the statute President Trump used does
not explicitly include the power to impose tariffs, duties, or taxes,
and that Congress did not delegate tariff power to the president.
Bloomberg News contributor Rick Davis says the decision extends the
suspense over whether the tariffs will ultimately stand.
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
Senate floor. Myron's confirmation hearing is set for Thursday in Washington.
Amy Morris Bloomberg Radio, All.
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,
and more. They argue Kennedy, a long time vaccine skeptic,
has focused on unproven treatments while downplaying vaccines amid the
biggest measles outbreak in the generation. At the Labor Day
rally in Chicago, officials celebrated the power of organized labor.
They also turned their attention to the possibility of National
Guard troops patrolling the city to fight crime, as suggested
by President Trump. Mayor Brandon Johnson. This is the city
of Chicago where we.
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
twenty twenty election. Global News twenty four hours a day
and whenever you want it with Bloomberg News Now Michael
Barr and this is Bloomberg here.
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.
That's to 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 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.
Are we already starting to see a market reaction to
this new trade uncertainty?
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
relief to market participants. And also, if we look at
the vote that was in this appeals court, it was
seven to four, which is better than the original case
when that was made earlier. When terms of the vote splits,
the vote split does appear more balanced. So net net,
if you look through the details, there is I guess
a bit more solace for markets that this Supreme Court
case might not be the final decision. We might not
see that final decision for a few months to come.
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
say when it came to these India tariffs. And they
have slapped on fifty five percent charge on Indian exports
to the US, and that has been on the back
of maybe seen as punishment for its purchases of Russian oil.
So maybe perhaps this is a way of Trump trying
to meangle that three party handshake that he saw yesterday
on social media.
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
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Bray