Trump Vows to Ramp Up India Tariffs; Texas Governor Orders Arrest of Democrats

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. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work.

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1:24Learn more at business.optum.com. Bloomberg 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 global trade. President Donald Trump says he will substantially raise the tariff on India's exports to the U.S. That's over the Asian nation's purchases of Russian oil. We get the very latest with Bloomberg trade czar Brendan Murray. We've seen a pattern from President Trump that he will escalate things, the rhetoric in particular, to try to de-escalate things. So he is trying to put pressure on India to make a deal.

2:09It's one of the big countries that originally he said was going to be among the first of the agreements that he would sign, but it's not going to happen. And he's trying to put pressure on not just India, but also in the Russia situation. He has his envoy going to Moscow in the next day or two to try to end the war in Ukraine. So he's using tariffs, this tool of economic policy to drive his foreign policy goals. Bloomberg's Brendan Murray says President Trump did not say by how much he would increase the levy. India says the targeting of its country is unjustified and unreasonable. Meanwhile, Nathan, some U.S.

2:46allies are headed to Washington to press the Trump administration to reduce tariffs. Switzerland announced yesterday it is ready to make a more attractive offer after being hit with 39 percent tariffs on its exports to the U.S. Begin more from Bloomberg senior editor Derek Wahlbank. Switzerland and the U.S. have a longstanding relationship where Switzerland is even a protecting power for the United States in dealing with some countries that the U.S. doesn't have diplomatic relations with. So there's a lot of tight relations there. And Switzerland had been seen as a country that might be on the fast track that was going to be one of the first ones to get a deal.

3:24From all accounts, the Swiss were blindsided. Bloomberg's Derek Wahlbank adds, unlike India, Switzerland is not talking about retaliation. Well, now to a developing story in Washington, D.C., Karen. the Justice Department has opened a criminal investigation into claims that the Obama administration took part in a conspiracy to link President Trump to Russian election interference in the 2016 campaign. Attorney General Pam Bondi is directing prosecutors to look into declassified documents that Director of National Intelligence Tulsi Gabbard released last month. The evidence that we have found and that we have released directly point to President Obama leading the manufacturing of this intelligence assessment.

4:06There are multiple pieces of evidence and intelligence that confirm that fact. DNI Tulsi Gabbard spoke at a White House news conference in July. She claimed then-President Obama misled the public with an intelligence assessment that Russia interfered in the election to help President Trump and improperly included a salacious, unverified document as an annex to that assessment. A spokesman for former President Obama is responding with a statement saying, quote, these bizarre allegations are ridiculous and a weak attempt at distraction. Well, now to a political story in Texas, Nathan, that's making waves across the country.

4:39Texas Governor Greg Abbott is ordering the arrest of Democratic lawmakers who left the state to block a vote on new midterm congressional maps. Many of those Democrats went to the Chicago area where they're getting support from members of Congress, including Jasmine Crockett. They are the ones that had to leave their families. They are the ones that have warrants out for their arrest. They're the ones that are doing things that honestly, a lot of other people do not have the audacity to do. Democratic Congresswoman Jasmine Crockett spoke alongside the Texas Democrats in Warrenville, Illinois. The arrest warrants don't carry criminal charges and cannot be enforced across state lines.

5:18President Trump has urged Texas Republicans to redraw their map as a way to retain GOP control of Congress in 2026. The move has Democratic governors like Gavin Newsom of California and New York's Kathy Hochul talking about retaliating with maps of their own. Let's turn back to markets now, Karen. Futures once again are higher after yesterday's rally on Wall Street. And this morning, shares of Palantir are up 5 percent. The data software company reported a 48 percent jump in second quarter revenue to over one billion dollars. That topped Wall Street estimates. Palantir cited the, quote, astonishing impact of artificial intelligence technology on its business.

5:54Mandeep Singh is global head of tech research at Bloomberg Intelligence. They needed numbers like this to really sustain the momentum, so they delivered, and the AI commentary is solid. So there is no doubt that the momentum they have seen with the business in terms of both acquiring new customers, they called out over a million dollar deals, it was the highest, so a lot of good metrics. Mandeep Singh of Bloomberg Intelligence says Palantir is also raising its full-year outlook. Well, Nathan, big oil earnings are in focus in Europe, and we go to London and get the very latest with Bloomberg's Ewan Potts.

6:29Ewan, good morning. Karen and Nathan, BP shares gaining today after the oil giant delivered earnings comfortably ahead of expectations. Analysts at Citi said that yesterday's news of a major oil discovery in Brazil could push investors to revisit the investment case. The firm also says it will seek cost cuts beyond current targets. Over in the Middle East, Saudi Aramco has reported a declining profit for a tenth straight quarter as lower oil prices outweigh the impact of higher production. The company's total dividend for the quarter just over$21 billion, down from$31 billion a year ago. And from oil to a different type of lubrication, London-based drinks giant Diageo, one of the best performing stocks in Europe today, that's after the maker of Johnny Ewan Walker Whiskey said it expects to maintain sales growth this year and announced more cost-cutting measures.

7:20In London, I'm Ewan Potts, Bloomberg Radio. Cheers, Ewan. Thanks. In deal news, shares of Star Surgical are surging more than 45 percent. The California-based company is being bought by Swiss eye care firm Alcon for about$1.5 billion. And Nathan, a senior official says the U.S. is exploring ways to equip ships with better location tracking capabilities. It's part of the White House's broader plan to curtail smuggling and ensure American technology remains dominant. And that includes working with the industry to monitor the movements of sensitive components.

7:55Time 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. More air quality alerts have been posted in the Northeast because of wildfires that are raging in Canada. Let's get the update in this report from Bloomberg's Charlie Pellett. Joshua Weiss, a forecaster at the U.S. Weather Prediction Center, says there's a big chunk of unhealthy air from Wisconsin to Maine, which is expected to stick around at least through the middle of the week. Air quality alerts have been posted in New York City as hundreds of fires rage across Canada from the Arctic Circle to southern Ontario.

8:34Air quality in New York became unhealthy for sensitive groups as ground-level concentrations of ozone, a byproduct of urban pollution and wildfire smoke, ticked up. In New York, Charlie Pellett, Bloomberg Radio. A pair of victims of Jeffrey Epstein blasted the Trump administration and the Justice Department for their attempts to unseal grand jury testimony in the criminal case against the convicted sex offender. They say government officials haven't listened to the voices of people who were harmed by his actions. The two victims who weren't identified asked in separate letters filed in a Manhattan court yesterday that any files related to Epstein be reviewed to protect their privacy.

9:13Epstein died in prison in 2019 as he faced sex trafficking charges. Israel's cabinet voted to terminate the country's attorney general, but Israel's Supreme Court quickly issued an injunction to block the move. The attorney general has drawn fire from the Dayton Yahoo government for insisting it abide by a court ruling that ends a decades-long exemption for ultra-Orthodox Jewish men from serving in the military. And DuPont and two other companies will pay New Jersey up to$2 billion to settle environmental claims stemming from so-called forever chemicals. The state says the deal is the largest such settlement in the state's history.

9:51Global 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. 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.

10:25dollars 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. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

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11:51Time now for the Bloomberg Sports Update, and here's John Stashauer. John, good morning. Good morning, Karen. The Yankees had a 1-6 road trip a month ago. This one may end up being even worse. Got swept in Miami, went to Texas, couldn't win. Even with a 3-0 lead, an ace pitcher Max Freed on the mound. Even when John Carlos Stanton gave them the lead back with a 2-run homer, The Yanks took a 5-4 lead of the ninth inning, and Jock Peterson hit a pinch hit homer off Devin Williams. In the tenth, Aaron Boone intentionally walked Wyatt Lankford so Jake Bird could pitch to Josh Young. That ball is hit in the air to left field indeed.

12:27They wanted to face Young, and he beat him. A walk-off three-run homer as Texas hands the Yankees another gut punch loss. On the S-Network, Rangers won 8-5. Yanks Strand did 10, went 3-15 with runners in scoring position. It left Boone yet again having to be asked about his underachieving team. Gotta get over it. I mean, we gotta win games. You know, the season's getting shorter in a hurry. So, it's no time for excuses and feeling bad. I know everyone feels like crap, but we gotta go take it. and haven't been able to do that on this road trip so far. The only good news is that Aaron Judge returns tonight, but Toronto won 15-1 at Colorado, and the Red Sox won their sixth in a row, 8-5 over Kansas City.

13:19The Yanks, a third-place team. They're barely ahead for a wild card. Mets also lost in 10 innings. They trailed Cleveland 5-0. Pete Alonzo almost single-handedly led them back, a three-run homer, an RBI single in the eighth inning, his fourth into the game. But the Guardians won 7-6 in 10. A Brett Beatty error was costly, and the Phillies beat the Orioles 13-3, so they lead now by a game and a half. The NCAA is keeping the basketball tournament at 68 teams, at least for next season there was talk of expanding the field. John Stashauer, Bloomberg Sports, Karen Nathan. Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg Business app.

14:01This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. with two days until higher tariff rates kick in on the world. President Trump is amping pressure on India, threatening substantially higher tariffs, in his words, for its purchases of Russian oil. Vandana Hari with Vanda Insights says this would be a sharp reversal from the start of the war in Ukraine when the U.S. was encouraging those purchases. They actually needed and wanted India and China to absorb all the Russian crude that was now being shut out of Europe. Vandana Hari is founder of Vanda Insights. For more, we're joined by Bloomberg News senior editor Bill Ferries.

14:39And Bill, it is very interesting to see this kind of reversal, particularly when you think about India being among the first to engage in trade negotiations with the U.S. Now, it really looks like the president is singling out India. Good morning. Good morning. It really does. I mean, this is a relationship that has just gone on a complete roller coaster. President Trump and Prime Minister Modi had a very close personal relationship during Trump's first term. They both hosted each other, both in India and the U.S., and it seemed like that was going to continue in this second term. It's really taken an unpredictable swing here.

15:21It's now India is kind of one of the outliers, really getting continually hammered by President Trump over its tariffs policy, over its purchases of both Russian oil and Russian weaponry. And it's not clear what the exit ramp is here. The government, India's government, has kind of struggled to respond to this. They've been defiant. They are continuing to take the Russian oil. So how this ends is still a little bit unclear. And it's interesting as well when you consider that China buys a lot more Russian oil than India does. And China's on a tariff pause right now. Yeah, it's definitely not being consistently applied.

16:03China and India have both been big purchasers, not just of Russian oil, but also of Iranian oil. And that is also sanctioned. That hasn't come up so far with the White House. But it is definitely seem to be they seem to be singling out India for special treatment, I guess you could say. So what are the biggest sticking points between India and the U.S. right now? You mentioned the Modi government holding firm in its demands. What are those demands right now? Is there any chance that things could be smoothed over by August 7th, two days away? Well, Modi's in a really tight political position now because this is not the first episode or run-in he's had with Trump.

16:43President Trump took credit for using tariffs to get India and Pakistan to step back from their conflict just a couple months ago. India disputed that characterization of the conflict. They did not like having President Trump out there claiming credit. So this goes back. There's more than trade involved here. When it comes to those trade talks, agriculture has been a big issue. The U.S. would like to have more access. India is really drawing a line on that front so far. And while there's this focus on Russian oil purchases, there's also a focus in Washington now on what's been termed Russiagate with the Justice Department now opening a criminal investigation into the claims that DNI Tulsi Gabbard made about the Obama administration last month.

17:29Yeah, this all goes back to Tulsi Gabbard's claims that she well, her claims that the Obama administration politicized and manufactured intelligence to go after what she said was a years long coup against President Trump. she sent that over to the Justice Department the Justice Department now under Attorney General Pam Bondi is asking prosecutors to use a grand jury to investigate those claims it's not clear really what specific actions they think were against the law here but Donald Trump has long been upset about how he felt like he was treated in that first term in the impeachment process that followed and they're going to continue pushing this for the foreseeable future.

18:20I mean, it's got to be very unusual for a current administration to convene a grand jury against a prior administration when past investigations like this have been handled by special counsels, isn't it? That's true. And listen, this has been something that's been well investigated both on Capitol Hill and elsewhere, including a big report that came out that was led by now Secretary of State Marco Rubio that concluded that Russia did try to interfere in the 2016 election and in Donald Trump's favor. So it has, you know, this is not the first time they've looked at it, and all the previous investigations have backed up the original findings.

19:01So I'm not sure what new evidence they're going to go to here. 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.

19:39And 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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