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

0:00Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Learn more at otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer, and is available only through participating broker-dealers. Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else.

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1:20You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. Bloomberg Audio Studios. Podcasts. Radio. News. Good morning. I'm Nathan Hager. And I'm Lisa Mateo. 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 Jay Powell used his keynote speech at Jackson Hole to signal the Fed could cut interest rates as soon as September. Here is Powell in what was likely his final Jackson Hole speech at the helm of the Fed.

2:05Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance. Monetary policy is not on a preset course. FOMC 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 Jay Powell, the next FOMC meeting starts September 16th. Traders see an 84 percent chance of a rate cut. Nathan, European Central Bank President Christine Lagarde 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.

2:45Lagarde spoke 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 U.S. or the European Parliament for me. But it's vitally important that central bank is independent. ECB President Christine Lagarde speaking to Fox News from Jackson Hole, Wyoming. Lagarde's marks come as Fed Chair Jay 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 2.9 percent in July from a year ago.

3:31The core PCE is the Fed's preferred measure of underlying inflation. 2.9 percent would be the fastest annual pace in five months. Well, on the equity side, Nathan, the big event comes on On Wednesday, when NVIDIA reports earnings, we get a preview from Bloomberg's Charlie Pellett. NVIDIA's China business will be a key theme in its earnings call amid broader concerns about lofty tech valuations. Cara Murphy is chief investment officer at 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.

4:06Now, 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 retailers 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. Keurig Dr. Peppers agreed to buy Dutch coffee and tea company J.D.E. Peet for$18.4 billion. Once the deal's complete, Keurig plans to split its coffee business from its other beverage operations only a few years after the deal that combined them.

4:40Well, in Europe, Nathan, shares of Dutch company Orsted 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, Orsted 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 50 percent this year, wiping nearly$8 billion off the company value. Let's turn now, Lisa, to the latest developments and efforts to end the war in Ukraine. Vice President J.D. Vance says sanctions against Russia remain on the table as the Trump administration attempts to broker an end to the war.

5:19Vance 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 a middle ground to stop the killing. That was Vice President J.D.

5:51Vance on NBC's Meet the Press, which you can hear every Sunday on Bloomberg Radio. Well, back here in the U.S., 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 Rahm Emanuel says this is all about politics. When you look at what he did in D.C., he's not going to actually deal with crime. This is an attempt to get the goods through customs.

6:23This is an attempt to deal with cities that are welcoming cities, known as sanctuary cities, and deal with immigration. Former Chicago Mayor Rahm Emanuel 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 Westmore 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 know, 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.

7:00Maryland Governor Wes Moore was a guest on CBS's Face the Nation, which you can hear every Sunday on Bloomberg Radio. Well, now, 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 blasted NBC and ABC in a true social post last night. He claimed 97 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 has already engaged in high-profile legal battles with TV networks. Just last month, he settled a lawsuit with Paramount for$16 million over an interview on CBS News before the FCC approved its merger with Skydance.

7:41The 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 Lake Mason into one of the largest money managers in the U.S., has died. He was 88. 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 Johns Hopkins University.

8:21All right, time 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. Good morning, Michael. Good morning, Lisa. Dangerous heat persists for millions in the West. Hot and dry conditions are fueling more wildfires. Captain Randy Zimmerman of the L.A. County Fire Department says high temperatures combined with low humidity have crews taking extra precautions. They're hiking steep terrain. They're fighting fire, and so that heat is definitely going to wear them down. In Oregon, the so-called flat fire has exploded to more than 21 ,000 acres.

8:59The flames are threatening more than 4 ,000 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 U.S. 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 Abrego Garcia on U.S. streets. A federal judge in his case in Maryland has said that Abrego Garcia could be deported to a third country.

9:38The only requirement is that they notify his attorneys and give them a 72-hour notice. Vice President J.D. Vance is defending the FBI's recent raid at the home of an outspoken critic of President Trump. The FBI raided 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.

10:15Vice President Vance made his comments on NBC's Meet the Press heard Sundays on Bloomberg. SpaceX delayed a test flight of its Starship rocket due to an issue with its ground systems. SpaceX Chief Elon Musk said a ground-side liquid oxygen leak needs to be fixed. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Thanks, Michael. Time now for a Bloomberg Sports Update. For that, we bring in John Stashauer. Thanks, Nathan. Tommy Fleet, when at age 34, playing his 164th PGA Tournament, finally got a victory, and it was a big one. The Tour Championship in Atlanta, he finished 18 under par, won by three shots, and won the$10 million first-place prize.

10:57U.S. Open tennis underway. Used to start on a Monday. Day earlier, straight-set wins on the men's side for Novak Djokovic, playing his 19th Open, as well as the Americans, Taylor Fritz and Ben Shelton. On the women's side, Jess Pagula, Irina Sabalenka, and Emma Navarro. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. Thinking about joining the exploding overnight market space, but unsure where to start? Designed to meet the needs of a growing international investor base, OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S.

11:38dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Extend your trading day and trade global securities in U.S. dollars through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion U.S. dollars traded on Moon ATS. Learn more about Moon ATS. Visit otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer.

12:29pays off deep in the work that moves the business. Let's create smarter business. IBM. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same, the thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment. It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts.

13:01Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. 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. They were the words investors seem to want to hear from Fed Chair Jay Powell at Jackson Hole. With policy in 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 economy's handed him and other policymakers a challenging situation before the Fed's next decision in a little more than three weeks.

13:47For more, we're joined by Bloomberg's Jill Deesis. Jill, good morning. So I guess the door is ajar 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, at 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.

14:27And I think we have heard that certainly from other Fed speakers at Jackson Hole the last few days. You know, we heard, you know, from the Fed president, Chicago Fed president, Austin Goolsbee, about how Fed's looking at what he described as cross currents 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 gauge of inflation that the Fed is looking at. We'll get another jobs report. We'll get another CPI print.

15:00But it really does indicate that, you know, I mean, inflation is still elevated. You know, it's been sticky in some ways. But, you know, we have had some other concerning data recently. And certainly I think those jobs revisions from a few weeks ago are certainly in 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 PCE 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, certainly the Fed is, you know, Powell, other members of the Fed have certainly said how much their data dependent in the past.

15:36I'm sure they're looking really, really closely at these kinds of things. But I'd 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 said outright 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.

16:03Now, we heard certainly from ECB President Christine Lagarde 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 at 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.

16:47I mean, you know, you had Lagarde and others that have certainly held that up both at Jackson Hole and in the past. I think that, you know, obviously Powell's 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 partway through 2026. And so he hasn't really seemed like he has any intention of leaving that chair early, no matter what Trump has 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 situation also with a little more dissent showing up in some of these decisions as well.

17:20Just last month, we had two. What's the risk of more fracturing at the next meeting? Got about 30 seconds left. Yeah, well, I think, look, there are obviously some pretty clear divisions among policymakers. 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 were 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 in presenting whatever September's decision may be.

17:56This 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. 2021. 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.

18:32It'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 Mateo. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

18:52Thank you.

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