Trump’s Tariffs Illegal, Spirit Airlines Bankruptcy Filing, More

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Episode Transcript

Speaker 1 (00:00):
News when you want it with Bloomberg News Now, I
made Kleggi. Most of President Trump's global tariffs were ruled
illegal by a federal appeals court that found he exceeded
his authority in imposing them, but the judges let the
levees stay in place while sending the case back to
a lower court for further proceedings. The US Court of
Appeals for the Federal Circle on Friday upheld an earlier

(00:21):
ruling by the Court of International Trade that Trump wrongfully
invoked an emergency law to issue the tariffs, but the
appellate judges sent the case back to the lower court
to determine if it applied to everyone affected by tariffs
or just the parties involved in the case. Friday's ruling
extends the suspense over whether Trump's tariffs will ultimately stand.
The case had been expected to next go to the

(00:42):
Supreme Court for a final decision. Earlier, Treasury Secretary Scott
Besson warned of dangerous diplomatic embarrassments if the tariffs were
ruled illegal, and after the ruling, President Trump posted on
truth social saying it would be a total disaster if
the tariffs went away. Spirit aviation Holdings filed for bankruptcy
the second time in less than one year, after its
cash strapped airline failed to turn around its business. The

(01:05):
parents of Spirit Airlines filed petitions for Chapter eleven and
US Bankruptcy Court for the Southern District of New York.
The filing comes amid active negotiations with some of its
largest lessers, secured note holders, and key stakeholders. Shares of
Spirit fell fifty one percent in post market trading Friday
to sixty cents as of four to twenty pm in
New York. Questions about whether President Trump had caused to

(01:28):
try to push out Federal Reserve Governor Lisa Cook dominated
the court hearing Friday as a judge weighs whether he
had proper reasons to order her removal from the US
Central Bank. US District Judge Giacobb pepperd lawyers for Cook
and the administration for about two hours Friday before ending
the hearing without ruling on the FED Governor's request for
a temporary order blocking Trump's effort to oust her. The

(01:50):
judge didn't indicate which way she is leaning in a
landmark lawsuit that could determine the future of the Fed's independence.
Federal Reserve Bank of San Francisco President Mary Dale suggested
policymakers will be ready to lower interest rates soon, adding
that inflation stemming from tariffs will likely prove temporary. Daily
road Froddy, in a brief social media post shared by
the San Francisco FED, that it will soon be time

(02:13):
to recalibrate policy to better match our economy. She said
tariff related price increases will be a one off. Consumer
sentiment has taken a downturn on the University of Michigan's index.
Bloomberg's Michael McKee has the details.

Speaker 2 (02:26):
Sentiment drops to fifty eight to two from fifty eight
to six in the preliminary number. Current conditions sixty one
seven from sixty point nine, a little bit better expectations
fifty five to nine from fifty seven to two. That's
where we see potential problem developing for perhaps the economy
as consumers start to consider what's going to happen down
the road.

Speaker 1 (02:47):
And Bloomberg's Mike McKee says the latest read on the
Fed's preferred inflation gage showed price pressures are still elevated.
Wall Street moves into the trading month of September after
and up August. We get that story from Bloomberg's Charlie Pellett.

Speaker 3 (03:00):
The S and P five hundred index saw its fourth
month of gains in August. For the week, the S
and P five hundred index fell one tenth of one percent.
Friday's slide came despite inflation data that did little to
alter bets on fed raycuts. But as we move into September,
the market's bracing for what is known as the weakest
month for US shares. For the week, both the Dow

(03:22):
and NASDAK dropped two tenths of one percent in New
York Charlie Pellett Bloomberg Radio.

Speaker 1 (03:28):
Iowa Republican US Senator Joni Ernst is expected to announce
in the coming days she won't seek re election. This
according to people familiar with her, plans, opening up a
Senate seat that could determine which party controls the majority.
According to two US officials, President Trump's administration plans to
search officers to Chicago for an immigration crackdown, in its

(03:48):
latest move to expand the federal law enforcement pressure major
Democratic run cities. The operation in the country's third largest
city is expected to last about thirty days and could
start as early as September. The Trump administration is proposing
strict new limits on visas for Chinese journalists in the
US to just ninety days, citing fraud and abuse. Journalists

(04:09):
from other countries would face a two hundred and forty
day limit. The move has already prompted pushback from Beijing.
Uber and lived to have both agreed to back a
state supervised way for their drivers in California to unionize
and collectively bargain for industry wide pay and benefits. And
they say breaking up is hard to do, but not
so with the food giant Craft Hinds. The Wall Street

(04:30):
Journal says that ten years after the two companies merged,
the conglomerate is finalizing plans to split up, spinning off
a large chunk of its grocery bisiness, which includes Craft
mec and cheese and other craft products, into a new entity.
The Friday numbers on Wall Street the Dow was down
ninety two, Nasdaq felt two forty nine. That's over one percent.
The S and P lost forty one. The ten year

(04:51):
treasury yield at four point two three percent, the two
year at three point six two percent. That's news when
you want it. With Bloomberg News. Now I mad a legging.
This is Bloomberg