Trump to Name New Fed Governor; Boeing Workers Strike

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1:29Bloomberg 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, this could be a big week when it comes to economic personnel. President Trump says he will announce a new Federal Reserve governor and a new jobs data statistician in the coming days. On Friday, one of the Fed's seven governors, Adriana Kugler, said she intends to step down early. On his way back to the White House from a weekend in Bedminster, New Jersey, the president said he would be filling Kugler's seat soon. I have a couple of people in mind.

2:07I'll be announcing somebody for the filling of the person that left. A woman left, as you know, who was a, I guess, a Biden appointment, either Biden or Obama, but I think a Biden appointment. and she left early and I think she left because she agreed with me on interest rates and yet they were on the other side of the ballpark, right? So I'll be announcing that probably over the next couple of days. With Fed Governor Adriana Kugler's departure, President Trump now has the opportunity to appoint a governor who more closely aligns with his preference for lower interest rates. Well, Nathan, the changes on the Fed board come as a major negative revision to jobs data has upended views on the weakness of the labor market.

2:49The revised figures make the past three months the worst for job creation since the pandemic. After the report, the White House fired the Bureau of Labor Statistics boss Erica McIntyre. White House National Economic Council Director Kevin Hassett said the firing was because the revision was poorly explained. The president wants his own people there so that when we see the numbers, they're more transparent and more reliable. And if there are big changes and big revisions, we expect more big revisions for the jobs data in September, for example, that we want to know why. We want people to explain it to us.

3:23Kevin Hassett made the comments on NBC's Meet the Press, and you can catch the program every Sunday right here on Bloomberg Radio. This morning, Karen workers at Boeing's St. Louis area defense factories are on strike for the first time in almost three decades. The walkout by almost 3 ,200 machinists come after union members rejected Boeing's modified contract offer. Julie Johnson covers the company for Bloomberg. Boeing Defense and Space has built fighter jets in St. Louis for a very long time. They also support some of the commercial jet programs out of there, but it's primarily military aircraft.

3:58And munitions and missiles are also built there. Bloomberg's Julie Johnson says Boeing's offer would have raised wages by 20 percent and boosted retirement contributions. The last time the union went on strike was 1996. That stoppage lasted 99 days. This morning, shares of Boeing are down a half percent. Well, Nathan, in Europe, UBS shares are down about seven-tenths of a percent. The Swiss banking group agreed to pay$300 million to settle a mortgage-related case with the U.S. Department of Justice. And we go to London and get the latest with Bloomberg's Caroline Hecker. It's another item ticked off UBS's list of legal issues, partly inherited from Credit Suisse, the bank that it rescued in 2023.

4:39In a statement, UBS says this$300 billion payment will resolve all the outstanding payments from a settlement that was reached in 2017 from residential mortgage-backed securities dating back to 2006-7. UBS says that it expects this to have a positive impact on its third quarter results as it will be able to release a contingency liability. The agreement closes UBS's biggest U.S. legal headache. In London, Caroline Hepker, Bloomberg Radio. OK, Caroline, thank you. Now let's get to the latest on trade. The U.S. and China have eight days until their tariff truce expires. U.S. Trade Representative Jameson Greer is sounding cautiously optimistic after last week's talks in Stockholm.

5:22He says rare earths were a key topic in the discussions. For the United States, we're focused on making sure that the flow of magnets from China to the United States and the adjacent supply chain can flow as freely as it did before the control. And I'd say we're about halfway there. U.S. Trade Representative Jameson Greer tells CBS's Face the Nation it will be up to President Trump whether to extend the tariff truce with China beyond August 12th. Face the Nation can be heard every Sunday on Bloomberg Radio. Nathan, now to a political issue in Texas that's caught the nation's attention. Democratic lawmakers in the Lone Star State have left the state to keep Republicans from redrawing their congressional map.

5:58Last month, the Justice Department determined four of Texas' House districts were racially gerrymandered. President Trump then called on Republicans to redraw the map to add five GOP seats ahead of next year's midterms. Democratic Illinois Governor J.B. Pritzker is blasting the Republicans. Trump came up with a new scheme, rigged the system by ramming through a corrupt mid-decade redistricting plan that would steal five congressional seats, silencing millions of voices, especially black and Latino voters. Let's be clear, this is not just rigging the system in Texas. It's about rigging the system against the rights of all Americans.

6:38Illinois Governor J.B. Pritzker spoke at a news conference alongside many of the Texas Democrats. They face fines of$500 a day for leaving the state legislature short of a quorum. Texas Governor Greg Abbott says a court could decide whether the lawmakers have abandoned their office, allowing him to swiftly replace them. State Attorney General Ken Paxton posted on X that the lawmakers should be arrested and brought back to the Capitol. Let's turn back to the markets now, Karen. Futures are higher as we kick off the trading week. On Friday, stocks sold off after the weak jobs data. The S &P 500 fell 1.6 percent, while the Nasdaq lost 2.25 percent.

7:15Morgan Stanley is recommending investors buy stocks on any pullbacks. In a note, strategist Mike Wilson said, quote, we're buyers of pullbacks and bullish the next 12 months. End quote. He added that he thinks the Fed will eventually transition to interest rate cuts. Well, Nathan, stocks in Switzerland falling half a percent on concerns President Trump's punitive 39 % export tariff on the country will dent corporate profits. The market was closed Friday for a holiday, so prices had not yet reflected the tariffs or the president's push for drug makers to lower prices. And Karen, oil is down more than 1 % this morning.

7:52OPEC Plus has closed a two-year chapter in its oil strategy, completing a series of oil production increases. But delegates emphasize that the next move could be a cut or a hike. 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 John Tucker. John, good morning. Good morning, Karen. Blackstone reopening its New York headquarters this morning after keeping the office shuttered in the wake of that shooting spree that killed four people, including one of its senior executives last week. The world's biggest alternative asset manager also gave staff the option to work remotely for the entire week.

8:30Officials say it was a miracle nobody was hurt. A large concrete and steel awning collapsed onto the sidewalk in Brooklyn Sunday. The awning connected to the Hotel St. George, which opened more than 100 years ago. A 3.0 magnitude earthquake shook up the area outside New York City Saturday night with the epicenter rooted in Hasbro Heights, New Jersey. People across the tri-state area reported feeling tremors shortly after 10 p.m. I was sitting in my living room and the whole house shook. Nobody was hurt. Republican hopes of holding on to power in the Senate after the 2026 midterms are receiving a boost from powerful, well-funded super PACs.

9:08That story from Bloomberg's Amy Morris. New filings show large sums of cash flowing to aid Republican candidates in states including South Carolina, Louisiana, Florida, Michigan, and Maine. Super PACs may play a significant role in influencing the outcome of the 2026 primaries and general elections when control of the House and the Senate are up for grabs. In other FEC filings, Elon Musk donated$5 million apiece to the Congressional Leadership Fund and Senate Leadership Fund, which aid House and Senate Republicans, respectively. In Washington, Amy Morris, Bloomberg Radio. I'm at WKRP in Cincinnati.

9:50Lonnie Anderson, best known for her role on the radio station sitcom WKRP in Cincinnati, has died. She was 79. Her publicist said she died Sunday in Los Angeles after an acute prolonged illness. 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 Tucker, thank you. 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.

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12:33Time now for the Bloomberg Sports Update. Here's John Stashauer. John, good morning. Good morning, Karen. The Miami Marlins had previous series wins with the Yankees. In fact, they once won a World Series from them, but they had never swept the Yanks. He said that wild 13-12 win Friday night. 2-0 shutout Saturday. And then they got to Luis Heal early on. Spoiling Heal's season debut. Later, put the game away. There's a shot. Deep right field. Going back is Bellinger. He looks up. And it is gone. Kyle Stowers has done it again. This time a three-run shot off the lefty. 6-1 Miami. On Marlins TV, Miami won 7-3.

13:14Despite the difference in payroll, the Yankees is more than double the sweep. Not all that surprising. Since June 13th, the Marlins record is 30-14. The Yankees record in that time is 18-27. They're now in third place. Red Sox, a weekend sweep at Fenway. The West leading Astros. Sox won 6-1 behind Lucas Giolito. Gave up just three hits. He's now 8-2 at Citi Field. And ex-Red Sox did damage to the Mets. He smashes out into right field. Oh, my goodness. headed for the second deck. A three-run classic Devers home run. And it's 4-1 Giants. And he is floating around the bases. That's big boy, big boy to land.

14:00Wow. Giants TV calling the Rafi Devers home run. Day after the Mets won 12-6, the Giants won 12-4. The Phillies top Detroit 2-0, and the Phillies take over first place. The first ever MLB game in Tennessee and the first at a NASCAR track. Postponed from Saturday due to rain. Announced crown of 91 ,000. Saw the Braves beat the Reds 4-2. The Wyndham Golf in Greensboro won by American Cam Young. He finished 22 under par. Won by six shots at one point led by nine. It's his first PGA win. John Stash at Bloomberg Sports. Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. and around the world on Bloomberg.com and the Bloomberg Business App.

14:43This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. President Donald Trump is getting ready to put his stamp on the Federal Reserve and the agency that puts out the monthly jobs report. The president says he is going to rename replacements for Fed Governor Adriana Kugler and his fired Bureau of Labor Statistics Chief Erica McIntyre for very soon. We'll be announcing a new statistician sometime over the next three, four days. We had no confidence. I mean, the numbers were ridiculous, what she announced. That was the president speaking to reporters on his way back to Washington from Bedminster, New Jersey.

15:17This morning, we're joined by Bloomberg News senior editor Bill Ferries. And Bill, after all the pressure that we have seen from President Trump on the Federal Reserve, now with the firing of the BLS chief, we go into pretty unprecedented territory. Good morning. Yeah, good morning. Yeah, it's true. It's a highly unusual move to go after the head of essentially, you know, the government's chief statistics bureau. The BLS has long been considered the gold standard when it comes to collecting this data. And there have been challenges with getting enough responses to the data. And perhaps that has explained some of the revisions that we've seen.

15:57But revisions have been typical for decades. So it does seem the president is reacting more. He's going after the messenger here because of frustrations over the message. But as you mentioned, there's also a heap of pressure on the on the Federal Reserve and Trump getting a chance to shape it a few months earlier than he probably expected to. Considering that Adriana Kugler's term wasn't due to expire until January, the president says he thinks that Kugler stepped aside because she agrees with him on the need to lower interest rates. Is that the sense that we have, that that's the reason why she's stepping aside?

16:37Yeah, there's really no evidence of that in terms of her previous comments or her stance at these key meetings that they have on rates. I do think, though, it obviously gives the president a chance to get someone onto the Fed who shares his view, at least philosophically, that interest rates should be coming down and coming down faster. And perhaps even basically put in someone in the job who would be his replacement for Jerome Powell when Powell's term expires in May. So could we be getting to a situation where we could see something like a shadow Fed chair once this announcement is put in place here?

17:20I mean, I've got to imagine there's going to be a lot of attention on the Senate confirmation process for whoever replaces Governor Kugler. Yeah, certainly. And that process will take some time. So it's not going to be an immediate thing. But there's going to be, you know, as soon as that name comes out, there's going to be a lot of scrutiny. There's going to be a lot of look at any papers or public comments. I mean, we may very well, when you look at some of the people who are likely on the short list, we're talking about, you know, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh.

17:53They would possibly be on that list. There's always been speculation that Scott Besson, the Treasury Secretary, could be on it. So, you know, these people, these are people who have been very supportive of the president, who have backed his idea that rates should come down. Powell is still in that job until May. I mean, he's the one who will be making the arguments in those policy committee meetings. But there will certainly be, the market will be pricing in changes that come after Powell leaves. On top of the pressure from the president on the Fed and the BLS bill, Boeing is facing some rare pressure from its defense factory workers this morning.

18:29That's right. We're seeing a real unusual strike by Boeing workers. In this case, it's the first time in almost 30 years workers at the St. Louis factory striking after they rejected the company's contract offer. We're talking about 3 ,200 machinists who walked off the job. The union's last strike was about 99 days. I mean, Boeing, listen, Boeing has had several very difficult years. It's been caught up in the spat with China. They weren't able to sell a lot of their planes to China in that time. They had the crash of the MAX several years ago. So this kind of comes on top of a lot of tumult at Boeing.

19:13So I think they'll be looking to try to resolve this as soon as possible and get back to work. But it is, you know, it's been almost 30 years. So we're almost in unprecedented territory. 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.

19:52Plus, 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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