Bloomberg Daybreak: US Edition

Donald Trump downplayed jostling with Federal Reserve Chairman Jerome Powell over cost overruns during a tour of the central bank’s renovation project, even as he used the interaction to again push for lower interest rates.

After a tour that saw Trump and Powell publicly trade barbs over the cost of the project, Trump maintained there was no tension with the Fed chief and indicated that problems with the project probably weren’t reason enough to fire the central bank head.

But the remarkable tour still saw the president joke that he might ordinarily fire a project manager who oversaw similar cost overruns and again rib Powell — who for months has faced presidential criticism — over interest rates.

For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:

• Bloomberg News senior editor Wendy Benjaminson
• Bloomberg News Federal Reserve Reporter Jonnelle Marte on President Donald Trump's visit to the Federal Reserve and Chairman Jerome Powell

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1) US President Donald Trump suggested that he would not go below 15% as he sets so-called reciprocal tariff rates ahead of an Aug. 1 deadline, an indication that the floor for the increased levies was rising.
2) Donald Trump will personally visit the Federal Reserve Thursday to tour a construction site he’s criticized for cost overruns amid his escalating attacks on Fed Chair Jerome Powell for not cutting rates.The White House announced the visit in the release of the president’s daily public schedule. The visit is planned for 4 p.m. reading simply, “THE PRESIDENT visits The Federal Reserve,” without further details.
3) Elon Musk warned of difficult times ahead for Tesla Inc. after one of the automaker’s worst quarters in over a decade.Tesla will be a transition period for the next year or more, losing electric vehicle incentives in the US and needing time to roll out autonomous vehicles, the chief executive officer said.

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Tesla fell short of Wall Street’s expectations in one of the automaker’s worst quarters in years, a sign of the toll that rising competition and a backlash against Chief Executive Officer Elon Musk have taken on the company. Adjusted earnings were 40 cents per share, Tesla said Wednesday in a statement, just below the average analyst estimate. Revenue fell 12% to $22.5 billion, the sharpest decline in at least a decade.

Still, the report was free of new bombshells and the company said it continues to move forward with robotaxi and affordable-vehicle plans, providing a measure of relief for investors. That comes “despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment,” Tesla said.

For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:

• Bloomberg Intelligence Global Autos and Industrials Research Manager Steve Man
• Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management

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On today's podcast:
1) President Donald Trump reached a trade deal with Japan that will impose 15% tariffs on imports including automobiles from the key American ally, while creating a $550 billion fund to make investments in the US.
2) Microsoft Corp. warned that Chinese state-sponsored hackers are among those exploiting flaws in its SharePoint software to break into institutions globally, with the US agency responsible for designing nuclear weapons now among those breached.
3) The record-breaking run in global stocks got fresh fuel after the US reached a trade deal with Japan, easing concern about the tariff war as traders turn their attention to earnings from US tech giants.

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On today's podcast:
1) Treasury Secretary Scott Bessent said in a social media post Monday that there should be a review of the decision to renovate parts of the Federal Reserve headquarters in Washington.
2) A cohort of the world’s largest asset managers is leaning harder into the rally in risk assets as US stocks push to fresh highs, defying persistent trade and geopolitical tensions.
3) Japan’s chief trade negotiator Ryosei Akazawa met with US Commerce Secretary Howard Lutnick on Monday as an Aug. 1 deadline for higher tariffs looms.

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On today's podcast:
1) The European Union prepares for the worst as it races to secure a trade deal with the US. European Union and US negotiators are heading into another week of intensive talks to clinch a trade deal by Aug. 1, when US President Trump has threatened to hit most EU exports with 30% tariffs.
2) Microsoft rushes to fix a widespread cyberattack on its server software. Microsoft's server software was exploited by unidentified hackers, with analysts warning of widespread cybersecurity breaches across the globe. Silas Cutler, a researcher at Censys, said "It's a dream for ransomware operators, and a lot of attackers are going to be working this weekend as well," regarding the breach.
3) President Trump pushes back at a report that he got advice not to fire Fed Chair Jay Powell. The president took to social media to criticize a Wall Street Journal article that reported his Treasury Secretary Scott Bessent advised against firing Powell. Trump insisted that he didn't need Bessent's advice.

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Bloomberg Daybreak Weekend with Tom Busby take a look at some of the stories we'll be tracking in the coming week.

• In the US – a look ahead to housing data and earnings from Tesla.
• In the UK – a look ahead to the next ECB monetary policy decision.
• In Asia – a look at ahead to Japan’s upper house election.

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On today's podcast:
1) US President Donald Trump authorized the Justice Department to seek the release of grand jury testimony from the prosecution of Jeffrey Epstein, bowing to mounting pressure from his supporters for more transparency about the late, disgraced financier.
2) Federal Reserve Chair Jerome Powell in a Thursday letter countered criticisms leveled at the central bank by a top White House official over a $2.5 billion renovation project.
3) While rival media companies are unloading assets and cutting costs, Netflix Inc. continues to thrive.

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While rival media companies are unloading assets and cutting costs, Netflix Inc. continues to thrive.

The owner of the world’s most popular paid streaming service on Thursday reported second-quarter results that exceeded investor expectations in every major metric, saying revenue grew to $11.1 billion and earnings jumped to $7.19 a share. The company also raised its forecast for full-year sales and profit margins.

The second quarter is historically slow for Netflix, which typically adds more customers at the beginning and end of the year. But the company released a steady slate of popular shows, including two of the most-watched titles of the year — the third season of Ginny & Georgia and the final season of Squid Game. The company also benefited from a weaker dollar. More than two-thirds of its customers live outside the US.

For instant reaction and analysis, hosts Tim Stenovec and Norah Mulinda speak with Geetha Ranganathan, Bloomberg Intelligence Senior Media Analyst and Mark Douglas, CEO of MNTN.

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On today's podcast:
1) President Donald Trump said he’s not planning to fire Jerome Powell, and still managed to make it sound like a threat.
2) Republicans are set to succeed in their decades-long quest to end federal funding for public broadcasting after the Senate passed a $9 billion package of cuts derived from Elon Musk’s Department of Government Efficiency effort.
3) President Donald Trump said he would send letters to more than 150 countries notifying them their tariff rates could be 10% or 15% as he forges ahead with his trade agenda.

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