Jackson Hole Points to Hard Road Ahead for Powell; Wall Street Awaits Nvidia Earnings

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.
All right, Lisa, Well, The drop in futures on Wall
Street follows Friday's big FED fueled rally. The Dow Jones
Industrial average begins the day in record territory after Chair J.
Powell used his keynote speech at Jackson Hall to signal
the FED could cut interest rates as soon as September.
Here is Powell what was likely his final Jackson Hole
speech at the helm.
Of the FED.
Nonetheless, with policy and restrictive territory, the baseline outlook and
the shifting balance of risks may warrant adjusting our policy stats, Marjorie.
Policy is not on a preset course. FMC members will
make these decisions based solely on their assessment of the
data and its implications for the economic outlook and the
balance of risks.
FED Chair Ja how The next FOMC meetings starts September sixteenth.
Trader ce in eighty four percent chance of a rate
cut NA.
Then European Central Bank President Christine Leguard is warning against
political interference in central banking. She says there's risk of
quote instability, if not worse, if governments dictate interest rate policy.
The Guard's book to Fox News.
I think the independence of any central bank is critically important.
I think we have to be accountable. We have to
report back and to answer all the questions of either
Congress in the US or the European Parliament for me,
but it's vitally important that central bank is independent.
ECB President Christine Leguard, speaking to Fox News from Jackson Hall, Wyoming.
Leguard's marks come as vetcher J. Powell faces pressure from
President Trump to slash rates.
Of course, Lisa, Inflation remains in focus, with a key
report on prices coming at the end of the week
on Friday. The Personal Consumption Expenditures Price Index that excludes
food and energy is expected to rise two point nine
percent in July from a year ago. The core PCE
is the Fed's preferred measure of underlying inflation. Two point
nine percent would be the fastest annual pace in five months.
Well on the next equity side, Nathan, the big event
comes on Wednesday, when in video reports earnings, we get
a preview from Bloomberg's Charlie Pellett.
In Video's China business will be a key theme in
its earnings, call him it broader concerns about lofty tech valuations.
Kara Murphy is chief investment officer with Kestra Investment Management.
What we've seen, especially coming out of second quarter earnings
is that many of those companies continue to deliver, and
that's really been able to fuel this momentum. Now it
sort of makes us a bit more cautious going forward
because of the very, very high expectations in these names.
Other tech names reporting this week include CrowdStrike, Snowflake, and Dell.
Also reporting Retailer's Best Buy and five below in New York,
Charlie Pellett Bloomberg Radio, all.
Right, Charlie, thank you. We have a deal to kick
off the trading week. Heric Doctor Pepper's agreed to buy
Dutch coffee in company JdE Pete for eighteen point four
billion dollars. Once the deal's complete, Carrig plans to split
its coffee business from its other beverage operations only a
few years after the deal that combined them.
Well.
In Europe, Nathan shares of Dutch company Orson fell to
the lowest on record. This is after the Trump administration
ordered a halt to construction on an almost finished offshore
wind farm. Now our Set is one of the world's
largest offshore wind developers. The order marks a new low
point in the company's failed effort to replicate its European
business in the American market. Shares are down almost fifty
percent this year, wiping nearly eight billion off the company value.
Let's turn Ellisa to the latest developments and efforts to
end the war in Ukraine. Vice President JD. Vance says
sanctions against Russia remain on the table as the Trump
administration attempts to broker an end to the war. Vance
spoke on NBC's Meet the Press.
I think the Russians have made significant concessions to President Trump.
For the first time in three and a half years
of this conflict, They've actually been willing to be flexible
on some of their core demands. They've talked about what
would be necessary to end the war. Of course, they
haven't been completely there yet or the war would be over.
But we're engaging in this diplomatic process in good faith.
We are trying to negotiate as much as we can
with both the Russians and the Ukrainians to find the
middle ground to stop the killing.
That was Vice President jd.
Vance on NBC's Week the Press, which you can hear
every Sunday on Bloomberg Radio.
Well back here in the US, Nathan, President Trump's threat
to send National Guard troops to more cities, well, it's
starting to face pushback from Democrats. Some of the Guard
units that have been deployed in Washington, d C. Have
begun carrying firearms, and President Trump has said Chicago could
be next to see stepped up federal law enforcement. Former
Chicago Mayor Ram Emmanuel says, this is all about politics.
So when you look at what he did in DC,
he's not going to actually deal with crime. This is
an attempt to get the goods through customs. This is
an attempt to deal with cities that are welcoming cities
known as sanctuary cities, and with immigration.
Former Chicago Mayor Ram Emmanuel appeared on CNN's State of
the Union. President Trump also posted on social media that
he's considering sending National Guard to Baltimore after Maryland Governor
Wes Moore invited the President to join him on a
safety walk through that city. Governor Moore says there are
a number of reasons why he opposes sending the Guard
to fight crime.
It's deeply disrespectful to the members of the National Guard. You,
as someone who actually deployed overseas and served my country
in combat, to ask these men and women to do
a job that they're not trained for is just deeply disrespectful.
Marilynd Governor Wes Moore was a guest on CBS's Face
the Nation, which you can hear every Sunday on Bloomberg Radio.
Well, all, Lisa, President Trump's issuing a new threat against
two of the big three broadcast networks. We get that
story from Bloomberg's Monica Riggs.
The President blassed NBC and ABC in a true social
post last night. He claimed ninety seven percent of their
stories about him are bad, and if that's the case,
he'd support the FCC in revoking their broadcast licenses. President
Trump is already engaged in high profile legal battles with
TV networks. Just last month, he settled a lawsuit with
Paramount for sixteen million dollars over an interview on CBS
News before the FCC approved its merger with Skydance. The
President also reached a settlement with ABC and FCC Chairman
Brendan Carr is now reviewing NBC's parent company, Comcast, diversity
equity and inclusion programs. Monica Ricks, Bloomberg Radio, all.
Right, Monica, And finally, Raymond Mason, who pursued mergers and
acquisitions over a four decade span to expand, like Mason,
into one of the largest money managers in the US,
has died. He was eighty eight. Mason, a fan of
the Baltimore Orioles, was a civic leader in Baltimore. He
helped build new stadiums for the Orioles and the NFL
Baltimore Ravens. He also served as chairman of the board
at John Hopkins University. All Right, time now for a
look at some of the other stories making news in
New York and around the world. So that we're joined
by Bloomberg's Michael Bark and Morning Michael.
Good. Morningly So dangerous heat persists from millions in the West.
Hot and dry conditions are fueling more wildfires, Captain Randy
Zimmerman of the La County Fire Departments as high temperatures
combined with low humidity have crews taking extra precautions.
Their hypen steep terrain of their fight and fire, and
so that heat is definitely going to wear them down.
In Oregon, the so called flat fire has exploded to
more than twenty one thousand acres. The flames are threatening
more than four thousand homes. Kilmar Abrego Garcia is expected
to report to an Immigration and Customs enforcement office in
Maryland today to find out whether he will be deported
to Uganda. The Salvadoran man who was mistakenly deported to
his native country is now back in the US to
face federal human trafficking charges. His trial is set to
start in January. The Department of Homeland Security has been
adamant that they do not want Kilmar Abrigo Garcia on
US streets. A federal judge in his case in Maryland
has said that Abrigo Garcia could be deported to a
third country. The only requirement is that they notify his
attorneys and give them a seventy two hour notice. Vice
President JD Vance is defending the FBI's recent raid at
the home of an outspoken critic of President Trump. The
FBI rated the home of former National Security Advisor John
Bolton early Friday morning, reports indicate the FBI was in
search of classified documents. Vance denied this was retaliation against Bolton,
who served during the first Trump administration.
Classified documents are certainly part of it, but I think
that there's a broad concern about Ambassador Bolton. They're going
to look into it.
Vice President Advance made its comments on NBC's Meet the
Press Hurt Sundays on Bloomberg. SpaceX delayed a test flight
of its Starship Rocket due to an issue with its
ground systems. SpaceX chief Elon Musk set a round side
liquid oxygen leak needs to be fixed. Global News twenty
four hours a day and whenever you want it with
the Bloomberg News Now, Michael Barn, this is Bloomberg Bark.
Thanks Michael. Time now for a Bloomberg Sports update. For that,
we bring in John stash Hour.
Thanks.
Nathan Tommy a fleet one of age thirty four, playing
his one hundred and sixty fourth PGA tournament, finally got
a victory and it was a big one, the Tour
Championship in Atlanta. He finished eighteen hunderd poarter, won by
three shots and won the ten million dollar first place prize.
US opened tennis underway used to start on a Monday
day earlier. Straight set wins on the men's sign for
Novak Djokovic playing his nineteenth Open, as well as the
Americans Taylor Fritz and Ben Shelton on the women's side,
Jess Pagoula, Arena Sablanka and Emma Navarro. That's a Bloomberg
Sports update.
Stay with us. More from Bloomberg Daybreak coming up after.
This Coast to coast on Bloomberg Radio nationwide on Serious
Exam and around the world on Bloomberg dot Com and
the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. They were the words investors seemed to
want to hear from FED Chair j Powell at Jackson Hole.
With policy and restrictive territory, the baseline outlook and the
shifting balance of risks may warrant adjusting our policy stance.
Still may adjust, does not mean will adjust, And even
Powell is saying the economies handed him and other policymakers
a challenging situation before the Fed's next decision in a
little more than three weeks. For more, we're joined by
Bloomberg's Jill Desis Jill. Good morning, So I guess the
door is a jar to a September cut, but we've
got quite a bit more data before we see just
how wide that door is.
Good morning, Yes, that's right.
Good morning, Nathan. I think you know, obviously what you
just heard from Powell, there is a pretty clear signal
that they are thinking about cutting. But I would point
out that this wasn't as clear of a sign as
we got, say last year's conference, when you know, he
opened the door to rate cuts last year, really kind
of kicking off that cycle this time around. The FED
still is battling a really difficult issue with its dual
mandate of jobs versus inflation here, and I think we
have heard that, certainly from other FED speakers at Jackson
Hole of the last few days. You know, we heard
you know, from the FED president, Chicago Fed President Austin
Golesby about how Fed's looking at what he described as
cross currents. It's in a really difficult environment. I think,
you know, Luckily for the FED, they still have a
few more data points to consider before we actually get
to that September meeting. I think you mentioned PCE already,
you know, upcoming that's a really favored gage of inflation
that the FED is looking at. We'll get another jobs report,
we'll get another CPI print, but it really does indicate that,
you know, I mean, inflation is still elevated, you know,
has been sticky in some ways. But you know, we
have had some other concerning data recently, and certainly I
think those jobs revisions are from a few weeks ago, certainly,
and everybody's mind still right absolutely.
I mean, we've had so much focus on the labor
market you have to wonder whether that core PCEE data
that's coming up on Friday could potentially be another pivot
point here shifting the focus of the FED back to inflation.
Yeah, I mean I think you know, again, you know
certain I mean, the FED is you know, Powell, other
members of the FED have certainly said how much their
data dependent in the past. I'm sure they're looking really
really closely at these kinds of things. But it also
point out that the other pressure points, you know, depending
on how much they really choose to acknowledge it, is
that you've got right now an active White House administration
that has really been pushing for cuts, and you know,
we've got Donald Trump himself who's you know, tried to
apply that. You know, Powell has actually set out right
that he thinks Powell has been late to this and
that's been a heavy point of criticism that's levied by
the White House, and so you've got that kind of
swirling all in the background as well.
Yeah, we heard certainly from ECB President Christine Leguard as
well just yesterday warning against the idea of threatening central
bank independence. Is there a sense that those comments that
we heard from Chairman Powell ad Jackson Hole were in
some respects driven by the political pressure he's under. Is
that sort of in the background as well.
I mean, I think it's kind of hard to ignore that, right,
and the atmosphere is a result, you know, feels very tense.
I mean, look, Jackson Hole is you know, obviously sort
of a unique situation because we've also got, as you mentioned,
other central bank peers from around the world that you know,
really are kind of backing the Fed's independence, kind of
highlighting that. I mean, you know, you had Laguard and
others that have certainly held that up both at Jackson
Hole and in the past. I think that you know,
obviously Powell was in a very difficult situation. But at
the same time, I mean, you know, pending, you know,
whatever happens, He's really only supposed to be in his
chair for you know, until part way through twenty twenty six,
and so he's hasn't really seemed like he has any
intention of leaving the chair early, no matter what Trump
is kind of thrown around in the past. But yes,
I mean, it obviously does put him and the rest
of the FED in a tough situation.
And a tough SAG situation also with a little more
descent showing up in some of these decisions as well.
Just last month, we had two what's the risk of
more fracturing at the next meeting, got about thirty seconds left.
Yeah, well, I think look, there are obviously some pretty
clear divisions among policy makers, and we had Powell himself
point out that this has been a very challenging situation.
I think we've certainly heard that from other members of
the FED, and does just kind of go to show that,
you know, I'm sure investors are already looking at this,
but we'll be looking at some of these upcoming prints
PCE inflation jobs just for even more clues as to
whether the FED is going to be unified, sort of
presenting whatever September's decision may be.
This is Bloomberg day Break, 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 to 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.