Trump Tariff Court Ruling; Nestle CEO Ousted

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1:31Bloomberg 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 trade because there is new uncertainty on that front as traders prepare 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.

2:14Bloomberg 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 to implement some portion of those tariffs. He might not be able to do all of them with every country that he had had under a tariff regime. Yes, right. But programs like Section 301 and others give him the ability alone, 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.

2:56Even after this ruling, Nathan, President Trump says India has offered to eliminate all its tariffs in response to new U.S. trade penalties. Neither the White House nor Indian officials have confirmed any new trade discussions. But this comes days after the White House imposed 50 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 Narendra Modi. It was a shame to see Modi getting in bed as the leader of the biggest democracy in the world with the two biggest authoritarian dictators in the world in Putin and Xi Jinping.

3:32That doesn't make any sense. White House Trade Advisor Peter Navarro spoke as Modi 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 Anasio Lula da Silva is convening a virtual meeting of BRICS leaders next week to discuss President Trump's trade policies. Sources tell us Lula is aiming to rally support for multilateralism among fellow emerging market nations. The U.S. has imposed varying tariff rates across the BRICS, and Lula reportedly does not want the meeting to turn into an anti-U.S.

4:09summit. 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. Bloomberg's Amy Morris has more from Washington. President Trump appointed Myron 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.

4:44Democrats 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. And 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 cause to fire her over allegations of fraud on her mortgages.

5:15The judge ended the hearing without a ruling. Cook's attorneys are expected to file another legal brief today, addressing the judge's questions and the administration's arguments. Nathan, let's turn to the markets now. And gold trading at a record driven by expectations for Fed rate cuts and concerns over central bank independence. The price topped$3 ,500 an ounce as investors loaded up on the safe haven asset. The latest run comes after Fed Chair Jerome Powell cautiously opened the door to a reduction in his Jackson Hole comments due to a weakening jobs market. Meanwhile, Karen, futures are trading lower with the record-breaking stock rally facing its next test later this week in the August jobs report.

5:55Former Kansas City Fed President Esther George says a weak number does raise the chances for a cut. The economy looks to be performing pretty good. The decision is, do they see something ahead that suggests the economy will slow in a way, 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 Esther George appeared on Bloomberg Television ahead of this Friday's jobs report. Nathan, in geopolitics, Russia's Gazprom has signed a legally binding agreement to build the power of Siberia 2 gas pipeline to China in what's being seen as a major political win for the Kremlin.

6:37Discussions around the mega project have been stalled 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 Shigeru Eshiba's key ally, Secretary General Hiroshi Moriyama, intends to resign to take responsibility for an election setback. As Sheba has 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.

7:14And just this morning, Nathan, 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 Xi Jinping and Russian leader Vladimir Putin. The visit marks Kim's first trip abroad since he traveled to Russia in 2023 and his first trip to China since January 2019. And a plane carrying European Commission President Ursula von der Leyen was disrupted over the weekend. Karen, authorities think it was Russia interfering in Bulgaria. We get more from Bloomberg's Suzanne Lynch in Brussels. The plane carrying von der Leyen, which was landing in Bulgaria on Sunday as part of this four-day tour, did land safely, but it was the subject of GPS jamming.

8:00Now, Bulgarian authorities have said that this is the fault of Russia. And in fact, a lot of the Baltic countries have reported an increase in this kind of activity. Bloomberg's Suzanne Lynch says von der Leyen was touring the EU's easternmost states on a campaign to build up military infrastructure. There's some major corporate news in Europe. Nathan Nestle has dismissed its CEO, Laurent Frex, after only a year due to an undisclosed workplace affair with a direct subordinate. We get more with Bloomberg's Jennifer Creary. So we know that there was an internal investigation from the company. And this was after the matter was raised to the company via an internal platform called Speak Up.

8:40The company couldn't substantiate the allegations after that, And so they brought in an external counsel to conduct another investigation. And that is the result that we see today. Bloomberg's Jennifer Creary says Nestle has named Philip Navratil as Frex's replacement. He currently runs Nestle's an espresso coffee brand. And checking shares of Nestle this morning, they're down more than 1%. 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 U.S.

9:15coffee giant that's focused on improving customer service, revamping the menu, and making the stores more welcoming.

9:25It's 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 Barr. Michael, good morning. Good morning, Karen. nine former CDC directors are calling out Health and Human Services Secretary Robert F. Kennedy Jr. 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 longtime vaccine skeptic, has focused on unproven treatments while downplaying vaccines amid the biggest measles outbreak in a generation.

10:09At 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 10 days off. The biggest city in America to ever do it. This is the labor movement, you all. Mayor Johnson says President Trump has shifted the largest concentration of wealth into the hands of the few. Meanwhile, Homeland Security Secretary Kristi Noem spoke about immigration enforcement operations in any of the cities beyond Chicago.

10:56She told CBS has faced the nation nothing is off the table. We have hundreds and hundreds of agreements with local law enforcement, 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 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. Giuliani was once lauded for leading New York after the September 11th attacks and later sanctioned by courts and disbarred for amplifying false claims about the 2020 election.

11:39Global 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 our Bloomberg Sports Update. And for that, we bring in John Stash Hour. Thanks, Karen. Bill Belichick's college coaching debut did not go well as North Carolina Tar Heels scored a touchdown four minutes in by the time they scored again. TCU was ahead 41-7. The Horned Frogs won in Chapel Hill, 48-14. U.S. Open, Coco Gauff lost to the fourth round to Naomi Osaka, a four-time Grand Slam champion. This will be her first quarterfinal since 2021. Quarterfinals begin today.

12:19Novak Djokovic plays Taylor Fritz tonight. 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. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Extend your trading day and trade global securities in U.S.

12:55dollars through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion U.S. 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. 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.

13:38You'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. Amazon Health AI presents Painful Thoughts. Why did I search the internet for answers to my cold sore problem? Now I'm stuck down a rabbit hole filled with images of alarmingly graphic sores in various stages of ooze. I can clear my search history, but I can never unsee that. Don't go down the rabbit hole. Amazon Health AI gets you the right care fast. Health care just got less painful.

14:44illegal in court, though a judge is keeping them in place for now. For more, we're joined by Bloomberg's Valerie Teitel. 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 in the beginning of next year.

15:17But if they don't, we could be waiting almost a year for a 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 that was made earlier in 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 has offered to cut its tariffs on U.S.

16:01goods to zero after the president posted 50 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 Xi Jinping and President Vladimir Putin. And 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.

16:43And they have slapped on 55 percent charge on Indian exports to the U.S. 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 that that three party handshake that he saw yesterday on social media. And as if trade uncertainty weren't enough in our last minute, we've got another major catalyst coming up for markets at the end of the week in the August jobs report. How much is this going to seal in expectations for a rate cut? Look, it's a big one, especially after Jerome Powell reemphasized how important the labor market data is.

17:23This Friday, we have nonfarm payrolls, consensus is for 75K print and for the unemployment rate to tick higher to 4.3%. And with the market already pricing in a 90 % chance of that September rate cut, a weak print could perhaps have the market pricing in further rate cuts. This 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.

18:05Plus, 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. Search 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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