ICE in Chicago and Trump-Epstein Letter; Traders Await Labor Revisions

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1:41Bloomberg 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 this morning with the latest on President Donald Trump's immigration crackdown, this time in Chicago. Federal agents are stepping up enforcement in Democratic-run cities that the White House says are suffering from rampant crime and disorder. The Department of Homeland Security says Operation Midway Blitz has begun in Chicago and other parts of Illinois, targeting what the agency calls criminal illegal aliens. President Trump says by bringing in the military, his administration saved Los Angeles.

2:25Now he says he wants to straighten out Chicago. Los Angeles was a mess. If we didn't send our troops in, Gavin Newsom would have had a real problem. We sent our troops, the head police officer, the top person said, we could have never done this alone. We sent our troops right in at the beginning and we killed it. And it was nasty, but we killed it. President Trump has threatened to send the National Guard to Chicago, but has yet to do so. Democratic leaders, including Illinois Governor J.B. Pritzker, Chicago Mayor Brandon Johnson, and Senators Dick Durbin and Tammy Duckworth have attacked the president's actions and rhetoric.

3:04Meanwhile, Nathan, a major Supreme Court ruling is backing the president's immigration enforcement efforts. The high court is allowing federal agents in Los Angeles to resume tactics that critics say amount to racial profiling. The court put a federal district court order on hold that barred immigration and customs enforcement agents from questioning and detaining people based solely on their ethnicity, language, occupation or presence at a particular location. Los Angeles Mayor Karen Bass criticized the ruling. Let me make this very clear for the press and to our country that we will not allow the Supreme Court or anyone to divide us.

3:43And Los Angeles Mayor Karen Bass. The Supreme Court's decision will apply while the legal fight continues. Justice Brett Kavanaugh wrote that apparent ethnicity alone cannot furnish reasonable suspicion, but can be a relevant factor when considered with other factors. And in another Supreme Court ruling, Karen, Chief Justice John Roberts is allowing President Trump to temporarily oust a Democratic member of the Federal Trade Commission. It's a signal that the court is likely to back the president's bid to assert control over the independent agency. Roberts set a deadline of September 15th for Rebecca Kelly Slaughter's lawyers to respond to the Justice Department's request to keep her out of her job while the legal fight plays out.

4:24The Trump administration is asking the Supreme Court to grant full review and consider overturning a 1935 precedent that let Congress set up independent agencies and shield their leaders from being fired. Nathan, House Democrats are looking to keep political pressure on President Trump and the Jeffrey Epstein case. The Democrats have released an alleged birthday note that they say President Trump sent to the convicted sex offender as part of a book to celebrate his 50th birthday in 2003. The note includes the sign-off, quote, may every day be another wonderful secret, complete with a sketched outline of a woman's body.

5:00The president has denied composing the message or that the note existed. Bloomberg's Wendy Benjaminson explains some of the arguments about whether or not the leather is real. Let's also just remember, to be fair, that when the Epstein victims had that news conference, I think it was last week, on the Capitol steps, they did say they didn't see Donald Trump do anything untoward or inappropriate when they saw him. But writing the birthday card, it looks, I mean, everything seems to point to the fact that Donald Trump did write that. Bloomberg's Wendy Benjaminson says survivors of sexual abuse by Jeffrey Epstein are calling on Congress to release all files related to the case.

5:42President Trump sued The Wall Street Journal's reporters, publisher and founder after the existence of the letter was initially reported in July. We've got some new developments in the Israel-Hamas war, Karen. Israel has ordered Gaza City's one million residents to leave in advance of a major military offensive. Top officials are vowing devastation unless Iran-backed Hamas surrenders. In a post on X, Israeli Prime Minister Benjamin Netanyahu wrote, I am taking this opportunity to say to the residents of Gaza City, listen to me carefully, you have been warned, get out of there. It's not immediately clear when the full assault will begin.

6:21Well, Nathan, in France, President Emmanuel Macron is searching for a new prime minister for the fifth time in less than two years after Francois Beirut lost a confidence vote in parliament. The outgoing premier is presenting his resignation to the president this morning after failing to win support for his deficit-cutting plans. Beirut had a message for Parliament yesterday. Ladies and gentlemen of the Assembly, you have the power to overturn the government, but you do not have the power to erase reality. The expenses will continue to increase even more, and the enormity of the debt, which is already unbearable, will get heavier and heavier and more expensive.

6:55Outgoing French Prime Minister François Beirut speaking through an interpreter. Market reaction has been muted as investors expected the downfall of the government. President Macron says he'll appoint a new premier in the coming days. Let's turn to U.S. markets now, Karen. With the S &P 500 hovering near record levels, the traders' focus turns to the labor market and inflation data. Bloomberg's John Tucker is here with more. Good morning, John. And good morning, Nathan. At 10 o 'clock Wall Street time, the Labor Department issues the benchmark payrolls revision. Now, economists expected to show the March payrolls count was almost 800 ,000 less than currently estimated, with some saying the downgrade could be closer to a million jobs.

7:38Lauren Goodwin at New York Live says a weaker job market is enough of a reason to move the Fed next week. There's, you know, just enough evidence to the downside on the labor market that I think an insurance cut in every way is probably a good idea. Oh, then there's the other side of the Fed's mandate, controlling inflation. Tomorrow, we're going to get the producer price index. That's followed by the consumer price index on Thursday. And Bloomberg Economics expects headline CPI to run hot. That could throw cold water on the idea of a larger rate cut by the Fed and in turn keep a lid on stocks.

8:12In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. And a note in the Fed this morning, White House economic advisor Stephen Myron's nomination as a Federal Reserve governor has been scheduled for a Senate committee vote tomorrow. The full Senate is likely to vote on confirming Myron September 15th, just a day before the Federal Open Market Committee meets. The FOMC meets on September 16th and 17th and is expected to cut rates for the first time since December on weakening job growth. Yeah, a lot of focus for investors on the Fed, Karen, as well as on Apple, with a very closely watched product launch expected.

8:48Today, we get the very latest from Bloomberg's Charlie Pellett. Apple is expected to introduce its iPhone 17 lineup, upgraded versions of the Apple Watch and Vision Pro headset, but such updates may not be enough to juice growth that has long trailed peers. Tony Wong is co-portfolio manager at T. Rowe Price. I think the market is going to be excited about something that's new, that's different, and I think that performance is probably what the market will also look at in terms of the camera, the battery. The Apple event is scheduled for 1 o 'clock Wall Street time. So far this year, Apple stock is down 5 % in New York.

9:26Charlie Pellett, Bloomberg Radio. All right, Charlie, thank you. And in the pre-market, Apple shares are down about another quarter percent. And finally, Nathan Rupert Murdoch and his children resolved a family feud with a settlement that gives Lachlan Murdoch broad control of the media empire. Lachlan will become the sole beneficiary of the trust that controls Fox Corp and News Corp. while Prudence, Elizabeth, and James will cede their stake and receive$1.1 billion each.

9:57Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. A rough start to the federal trial of the man accused of attempting to kill President Trump during his campaign for re-election last year. 59-year-old Ryan Ruth from North Carolina is representing himself as jury selection begins, and some of Ruth's requests have been unusual. According to court filings, Ruth had asked to compete for his life in a round of golf with the president instead of going to trial.

10:30At times, while Ruth questioned jurors, Judge Eileen Cannon cut him off and reminded him to follow the court's rules. President Trump said he created a Department of Justice task force to eradicate anti-Christian bias. There is a tremendous anti-Christian bias. We don't hear about it. We don't think about it. You hear about anti-Semitic, but you don't hear about anti-Christian. You have a strong anti-Christian bias, but we're ending that rapidly, I will tell you. President Trump delivered remarks to the White House Religious Liberty Commission. An immigration attorney says many South Korean workers detained in an ICE raid at a Hyundai plant in Georgia were brought in for highly specialized work that Americans aren't trained to perform.

11:16He represents four South Koreans who were among 475 workers rounded up in the raid last week west of Savannah. They include 300 North Korean nationals, South Korean nationals, and are said to have come for short-term jobs installing equipment for producing electric vehicle batteries. For our listeners on 92.9 FM in Boston, it's preliminary election day. Voters will cast ballots today to narrow the field for mayoral and city council races ahead of the November 4th general election. Mayor Michelle Boo, the incumbent, enters the preliminary with a huge lead in the polls. In New York City, late polls show Democrat Zoran Mamdani holds a big lead in the mayoral race.

12:01That includes over former Governor Andrew Cuomo and current Mayor Eric Adams. An encouraging development in organ transplants could eventually shorten some patients' weight for donor organs. Doctors at Mass General in Boston say they've successfully performed three separate transplants of pig kidneys into humans, and now the FDA is giving the green light for a clinical trial. Dr. Leonardo Riella. We know the best treatment for these patients, but we are stuck because of the organ shortage. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen.

12:38Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. Monday Night Football to wrap up Week 1. An NFC North game in Chicago. And the Bears got a 76-yard pick six in the third quarter. Took a 17-6 lead in the fourth quarter. When the Vikings came alive under their new quarterback, J.J. McCarthy. Two TD passes, then a touchdown run and a nine-and-a-half-minute stretch. Minnesota won 27-24. The Phillies shut out the Mets 1-0. They're dealing with injuries. Their shortstop, Trey Turner, has a hamstring strain. Third baseman Alec Bone, a shoulder injury.

13:12They both may miss the rest of the regular season. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for this show comes from Public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions. buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S &P 500. Or, if my cash balance goes above$20 ,000, move the excess into my direct index.

13:51You approve of the workflow and your agent handles the rest. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by Public Investing. Brokered services by Open to the Public Investing, Member FINRA and SIPC. Advisory services by Public Advisors, LLC, SEC Registered Advisor. Complete disclosures available at public.com slash disclosures.

14:31As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots. Visit bloomberg.com slash podcast offer to learn more. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. The Trump administration's immigration crackdown appears to have spread to Chicago with the Department of Homeland Security launching what they're calling Operation Midway Blitz.

15:09And DHS Secretary Kristi Noem says the Windy City won't be the end of it. We can run as many operations every single day as we need to to keep America safe. So nothing's on hold. Everything is full speed ahead. That was Homeland Security Secretary Kristi Noem speaking with reporters in the United Kingdom. For more, we're joined by Terry Haynes, founder of Pangea Policy, to talk politics this morning. Terry, good morning. There seems to be little doubt that the president sees immigration as a winning issue for him. How do you see it? Good morning. Good morning, Nathan. It's certainly a winning issue for him politically.

15:42It's one of the main planks upon which he ran for election and he won. And people, by and large, it's one of these so-called 80-20 issues that people talk about where 80 percent of the public back him. I'm not talking about that literally, just, you know, kind of vast majorities. And, you know, and substantively, people want the law to be enforced. There's a growing sense that there's an increase in lawlessness, number one. And number two, I think underpinning a lot of this is the idea that the country's benefits ought to be enjoyed first and foremost by the citizens of the country and that we need to rein in immigration.

16:26A sentiment which is beyond the United States. It's sweeping the West, frankly. When you see crackdowns like what happened in Georgia, the Hyundai plant, hundreds of South Korean immigrants detained, does that undercut the president's overriding concern that cracking down in immigration will lead to a manufacturing boom made in the USA? Well, there's a couple of things going on. One is the, you know, I think people want the law enforcement. Substantively, they want immigration control, number one. Number two, there's a how question. The how is, I think, much less popular, much more divisive. And there's a lack of understanding on top of that, that kind of how immigration fits into the broader workforce.

17:25And these are concerns that aren't going to be solved in a day, but you can certainly see them represented in the polls of the two political parties. Just 30 seconds left, Terry, but Democrats have been saying that violent crime is down statistically. Why is that not working for them? It's down because there's a can-see-it-with-your-own-eyes question. And the latest cause celeb of many is this Ukrainian immigrant who was murdered on the bus with video, of course. So there's that, number one. Number two, there has been high crime. So the idea that there's a small downturn doesn't help the argument for Democrats.

18:10this is bloomberg daybreak your morning podcast on the stories making news from wall street to washington and beyond look for us on your podcast feed by 6 a.m eastern each morning on apple spotify or anywhere else you listen you can also listen live each morning starting at 5 a.m wall street time on bloomberg 1130 in new york bloomberg 99.1 in washington bloomberg 92.9 in boston and nationwide on Sirius XM Channel 121. Plus, listen coast-to-coast on the Bloomberg Business app, now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less.

18:51Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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