Trump Tariff Deadline Nears; Trump Fed Governor Decision Soon

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1:57Bloomberg 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 developments on trade. This morning, Swiss President Corinne Keller-Sutter is on an emergency trip to the United States, planning to meet with Secretary of State Marco Rubio in an effort to lower the U.S.'s 39 percent tariff on her country's goods. We get more from Bloomberg News senior editor Bill Ferries. She's flying there basically without an invitation from the White House. I'm sure she's hoping that she can meet with Rubio and then continue over to 1600 Pennsylvania and meet with Trump.

2:41We'll see if that really happens. Anything lower than 39 percent would be a win for Switzerland at this point. It's hard to know what they could offer. They could look at buying more energy from the U.S. They could look at making investments the way countries like Japan has. I think it's clear with this last-minute rush just how blindsided the Swiss government was by that 39 percent tariff. Bloomberg's Bill Ferry says that 39 percent tariff is the highest rate on any developed nation, and it is set to take effect tomorrow. Now, Nathan, to the latest on the war in Ukraine. White House Envoy Steve Witkoff is in Moscow two days before President Trump's August 8th deadline for Russia to reach a truce.

3:24Russia's Interfax News Service reports Witkoff is meeting with Russian President Vladimir Putin. President Trump had threatened what he calls secondary tariffs on buyers of Russian energy. He says he hopes the economic blow will bring Putin to the table. If energy goes down low enough, Putin's going to stop killing people. That'll be nice, even though they're his own people that are dying, him and Ukraine. And President Trump spoke in an interview with CNBC. Putin has said he won't stop the war, but sources say the Kremlin might be willing to stop airstrikes to avert any new economic penalties.

3:59Well, Karen, President Trump may be getting closer to naming a successor to Fed Chair Jay Powell. In that same CNBC interview, he said he has three or four names in mind, but one of them is not Treasury Secretary Scott Bessent. Well, I love Scott, but he wants to stay where he is. I will. I'll take him off the because I asked him just last night, is this something you want? Nope. I want to stay where I am. He actually said, I want to work with you. It's such an honor. I said, that's very nice. I appreciate that. President Trump says he'll make a decision on a replacement for outgoing Fed Governor Adriana Kugler before the end of the week.

4:31Nathan, Democratic and Republican lawmakers are escalating a fight over redistricting that started in Texas and is now quickly spreading across the country. President Trump has said a new congressional map in Texas would add as many as five GOP seats in the House next year. James Tallarico is a Democratic congressman in Texas. If the president wanted to campaign on his policies and try to win based on the maps that we all set in 2021, that would be fine. That's how this process is supposed to work. But that's not what's happening. The president is trying to execute a power grab in the state of Texas, and we will not let him cheat in order to hold on to power.

5:09And Texas Democrat James Tallarico spoke on Bloomberg's balance of power. Now other states are talking about redrawing their own maps. Democrats in California are vowing to fight fire with fire as they consider asking voters to override the state's independent redistricting panel. New York Governor Kathy Hochul has called forward disbanding her state's redistricting committee, though any changes wouldn't happen before the midterms. And Republicans in Missouri are stuttering whether to copy the plan in Texas. And when it comes to the race for New York City Mayor, Karen, former Governor Andrew Cuomo says either he or current Mayor Eric Adams will need to drop out of the race in order to defeat Queens Assemblyman Zoran Mamdani.

5:48Cuomo spoke with Bloomberg Surveillance. Everyone is petrified about electing a socialist who's anti-police. And I think you get to mid-September and that's going to be the, let's call it the drop-dead date, where you're going to have to winnow down the field or people will think there's no way to beat the assemblyman. For the full conversation with former New York governor and independent mayoral candidate Andrew Cuomo, head over to the Bloomberg podcast page on YouTube. Well, Nathan, there are plenty of new developments in the Jeffrey Epstein case. The House Oversight Committee has subpoenaed the Justice Department for the, quote, full, complete, unredacted Epstein files.

6:30Committee Chair James Comer also sent subpoenas to Bill and Hillary Clinton and former FBI Director James Comey, though it's unclear what they'd add to the case. Meanwhile, the disgraced financier's accomplice, Ghislaine Maxwell, is fighting to keep the grand jury testimony in her case from going public. She was moved to a minimum security prison last week after meeting with Deputy Attorney General Todd Blanche. President Trump says he does not know anything about that. Todd Blanche is one of the most highly respected people you'll ever meet. So I know this. I didn't discuss it with him, but anything he talked about with her or the fact that he did that, not unusual, number one.

7:08And most importantly, is something that would be totally above board. President Trump spoke at a White House news conference, and the subpoena gives the Justice Department until August 19th to turn over the Epstein records. Let's turn to markets now, Karen. Futures are pointed higher as earnings take center stage, both here in the U.S. and in Europe. Walt Disney leads almost three dozen companies in the S &P 500 reporting today. In Europe, the sell-off in Nova Nordisk shares continues. Right now they're down about 1%. percent. Sales showed the weakest growth in four years as the Danish drugmaker lost ground to Eli Lilly in the crucial U.S.

7:45market for obesity drugs. Nathan, back on Wall Street. Bank of America is pushing its investment banking analysts to disclose if they've accepted jobs elsewhere and telling them they face redeployment if they do so. And we get more with Bloomberg's Charlie Pellett. It's the latest attempt by Wall Street lenders to stem defections to private equity firms and other rivals. A source tells Bloomberg junior bankers are being asked by their managers to divulge whether they have a new employment opportunity. Wall Street banks, including Citigroup and Goldman Sachs, are pushing back on aggressive efforts by the private equity industry to recruit junior bankers early in their careers.

8:26In New York, Charlie Pellett, Bloomberg Radio. Thank you, Charlie. And Bloomberg News has learned OpenAI is in early talks about a potential sale of stock for current and former employees at a valuation of about$500 billion. Companies targeting a secondary stock sale in the billions. Existing investors, including Thrive Capital, have approached OpenAI about buying some of the employee's shares. If the deal goes ahead, it would elevate OpenAI's on-paper price tag by roughly two-thirds. Its previous valuation stood at$300 billion.

8:59Time 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 John Tucker. John, good morning. And good morning, Karen. Israel is weighing an expansion of its armed presence in Gaza. Prime Minister Netanyahu considering whether to deploy the Israeli defense forces into the 25 % of the Palestinian territory not already under its control. Israel's foreign minister spoke at the UN yesterday. Hamas is responsible for beginning this war by invading Israel and committing the October 7th atrocities. Hamas is also responsible for the continuation of this war.

9:37Several international governments have spoken out against this spiraling humanitarian toll on Gaza's 2 million plus population. A federal judge has blocked the Trump administration from reallocating$4 billion meant to help communities protect against natural disasters. That story this morning from Bloomberg's Amy Morris. U.S. District Judge Richard Stearns in Boston granted a preliminary injunction sought by 20 Democrat-led states while their lawsuit over the funding moves forward. The states argue that Congress allocated the$4 billion in funds so FEMA doesn't have the authority to end the Building Resilient Infrastructure and Communities Program, which aims to harden infrastructure around the country against potential storm damage.

10:20FEMA initially announced it was ending the program, but has later said in a court filing it is evaluating it. In Washington, Amy Morris, Bloomberg Radio. The Department of Health and Human Services is scaling back on mRNA vaccine development. The move, the latest under Health and Human Services Secretary Robert F. Kennedy Jr., changing how the nation's health department funds, develops, and reviews vaccines. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker. This is Bloomberg Karen. All right, John, thank you.

11:18through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion 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. This is the Bloomberg Tech Minute, brought to you by ChatGPT. Now with ChatGPT Work, I'm Carol Masser. DoorDash, the largest food delivery company in the U.S., is building its own delivery drones and has gained the necessary FAA approvals to operate them commercially, the latest in its effort to delegate more orders to robots as a way of cutting delivery times.

12:03Bloomberg's Natalie Lung reports the company says it has been conducting pilot programs with various restaurants, some of which have seen their order volume grow during the test period. The effort marks an expansion of DoorDash's in-house robotics efforts to reduce reliance on human couriers for some orders, as their wages constitute a key expense to the business. Drones are also a way for DoorDash to cut delivery times on orders from more remote locations that some dashers may not want. That's the Bloomberg Tech Minute, brought to you by ChachiPT. Put ChachiPT to work on your most ambitious ideas and projects.

12:37Get started at ChachiPT.com today by selecting Work Mode, available on Plus and Pro Plans. Let's talk about healthcare for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a healthcare company linking patient care and pharmacy services and using data and technology to drive the whole system so care is connected, not complicated, for patients and providers.

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13:51Time now for the Bloomberg Sports Update, and here's John Stashower. John, good morning. Good morning, Karen. These are tough times for New York. Baseball, Yankees, and Mets keep losing. The teams ahead of them in the standings keep winning the Yanks in Texas this time got great pitching from Will Warren but the Rangers Nathan Valdi even better came in with MLB's lowest ERA and then lowered it even more down to one point three eight. The Yanks in eight innings against Valdi got only one hit. The game was scoreless in the eighth when Texas loaded the bases had Rowdy Tellez at the plate against Devin Williams.

14:23One out bases loaded full count now they're coming to their feet. 10th pitch of the at-bat. And it's lifted to center. It's down. Base hit. Two runs headed to the plate. And the Rangers at long last have the lead. The Rangers Sports Network, Texas won 2-0. Yankees on this road trip are 0-5. Trip ends this afternoon. Mets managed only four hits. Cleveland won at Citi Field 3-2. Mets have lost 7-8. Manager Carlos Mendoza asked about their struggles against left-handers. Eventually, it's going to turn, you know, but as a whole, we're having a hard time putting a rally together and being consistent against lefties.

15:04So, again, we continue to believe on those guys. They're really good hitters, and whether it's lefties, righties, right now, they got our numbers. But, you know, I'm anticipating this to turn here quickly. The Phillies shut out the Orioles 5-0. The Mets now trail the Phillies by two and a half games in the AL East. Toronto won 10-4 at Colorado, and the Red Hot Red Sox beat Kansas City 6-2. Their seventh win in a row. The Jays lead the Sox by three, and the Yanks have fallen 6.5 out of first. They're only a half game ahead for a wild card. ESPN and the NFL have now made official the story that broke last week about the network taking over NFL media properties.

15:40The league buying a 10 % interest in ESPN. Keenan Allen, for 11 years, the Chargers top whiteout. He spent last season in Chicago. He was a free agent. He assigned to return to L.A. John Stashauer, Bloomberg Sports, Karen Nathan. 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. With less than 24 hours to go until ramped up tariffs take effect, President Trump is ramping up his rhetoric, saying he will announce higher duties on drugs and chips in the next week or so, and even higher tariffs, he says, on countries like India that buy Russian energy.

16:22We settled on 25 percent, but I think I'm going to raise that very substantially over the next 24 hours because they're buying Russian oil, they're fueling the war machine, and if they're going to do that, then I'm not going to be happy. That was the president in an interview on CNBC. This morning, we're joined by Bloomberg's news director for Europe, the Middle East, and Africa, Rosalind Matheson. And Roz, the stakes are getting higher here now with President Trump's Middle East envoy Steve Witkoff reportedly meeting right now with Russian President Vladimir Putin ahead of this Friday ceasefire deadline.

16:56Give us the latest. Well, that's right. So we know that Witkoff is in Russia today having meetings in the Kremlin. And the question is, what is he asking for and what is Russia, if anything, willing to give? We know from our own reporting that there is a conversation in the Kremlin about potentially offering to stop airstrikes on Ukraine in a temporary fashion. That's not Vladimir Putin, by the way, agreeing to a ceasefire or to stop his war. He seems to have every intention of continuing it, but perhaps making that as a gesture to try and get Donald Trump to stand down on some of these threats, including to try and penalise buyers of Russian energy, particularly India, as you were saying, and try and cut off those markets for Russia, which have been very important to the Russian economy throughout the past few years of its war in Ukraine.

17:48And so penalising India in particular, no great word, by the way, about China, but that seems to be a separate matter for Donald Trump. And so what can we expect from those talks today? Will there be some kind of offer that comes from the Kremlin out of that? Unlikely, again, to be a full ceasefire because Vladimir Putin does seem determined either way to press on with his war. Yeah, to that point, I mean, is there any sense that Russia could be swayed by this idea of secondary tariffs, as the president has termed it, given, you know, all the economic pressure that's been brought to bear on Russia over the last three plus years hasn't stopped the war?

18:27Well, that's right. And Vladimir Putin does seem particularly willing to tolerate quite a lot of pressure on his economy. Either way, we've seen that over the years of all the sanctions that have been put on, the efforts to chase Russia's shadow fleet to curb its various supplies and sources of income. And so he's willing to do that. And he's got his economy on a wall footing, producing a lot, and that's generating its own benefit internally, masking obviously the underlying weakness that you can really see in the Russian economy. The question is, what does it do potentially to energy prices for Russia?

19:02How much would it depress energy prices for Russia and that source of income for him if Donald Trump were particularly to target India in all of that? We can see from India, by the way, so far today, a sense that they're not minded to stop buying energy from Russia either way, despite this pressure from Donald Trump. So the question is, would it have an impact on prices and therefore would it impact Vladimir Putin? And what is his ultimate pain point really for his economy? Along with this Friday ceasefire deadline from President Trump in Ukraine, there's also the deadline of tomorrow for higher tariffs to kick in.

19:40And Switzerland's president is in Washington trying to get out of the highest tariffs for any developed nation. Is there a chance that we could see some kind of deal come out of whatever discussions could happen with the Swiss president? Well, it's certainly a big challenge for her because all we know so far of her trip, she seemed to have gotten on the plane on the fly and gone to Washington without meetings set up. We do know she's going to now meet with the Secretary of State Marco Rubio, But his remit is not trade policy and he's not really there in the capacity to be able to have deep negotiations on trade.

20:18His remit obviously is more foreign policy. Does that mean that maybe there's some kind of avenue for the Swiss, for example, to promise to buy more US planes, more fighter jets? Is that a way to give Donald Trump something to get him to stand down a bit on the tariff levels for Switzerland? but the fact that she's not at this point lined up to meet anyone seriously on the trade side, including Donald Trump himself, and she doesn't have that rapport with Donald Trump, that history with him that other leaders do, including Narendra Modi in India, for example. She doesn't have an avenue to him. And so for her with these meetings, it's a real challenge.

20:57The question is, can the Swiss offer anything that would counteract Donald Trump's intention to put very high tariffs on them? 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. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces.

21:40And 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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