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

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What is the main topic discussed in this episode?

Ed Kalengi 0:00

News when you want it with Bloomberg News Now. I'm Ed Kalengi. 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 levy stay in place while sending the case back to a lower court for further proceedings. The U.S.

What did the federal appeals court rule about Trump's tariffs?

Ed Kalengi 0:18

Court of Appeals for the Federal Circuit on Friday upheld an earlier 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 Supreme Court for a final decision. Earlier, Treasury Secretary Scott Besant warned of dangerous diplomatic embarrassment 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.

Ed Kalengi 0:57

Spirit Aviation Holdings filed for bankruptcy for the second time in less than one year after its cash-strapped airline failed to turn around its business. The parent of Spirit Airlines filed petitions for Chapter 11 in U.S.

What implications does the ruling on Trump's tariffs have for future legal proceedings?

Ed Kalengi 1:08

Bankruptcy Court for the Southern District of New York. The filing comes amid active negotiations with some of its largest lessors, secured note holders, and key stakeholders. Shares of Spirit fell 51 percent in post-market trading Friday to 60 cents as of 4.20 p.m. in New York. Questions about whether President Trump had cause to 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 U.S. Central Bank. U.S. District Judge Gia Cobb peppered 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.

Ed Kalengi 1:50

The 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 Daly suggested policymakers will be ready to lower interest rates soon, adding that inflation stemming from tariffs will likely prove temporary. DAILY wrote Friday in a brief social media post shared by the San Francisco Fed that it will soon be time 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.

Michael McKee 2:26

Sentiment drops to 58.2 from 58.6 in the preliminary number. Current conditions 61.7 from 60.9, a little bit better. Expectations 55.9 from 57.2. That's where we see a potential problem developing for perhaps the economy as consumers start to consider what's going to happen down the road.

Ed Kalengi 2:47

And Bloomberg's Mike McKee says the latest read on the Fed's preferred inflation gauge showed price pressures are still elevated. Wall Street moves into the trading month of September after an up August. We get that story from Bloomberg's Charlie Pellett.

Charlie Pellett 2:59

The S&P 500 index saw its fourth month of gains in August. For the week, the S&P 500 index fell one-tenth of one percent. Friday's slide came despite inflation data that did little to alter bets on Fed rate cuts. But as we move into September, the market's bracing for what is known as the weakest month for U.S. shares. For the week, both the Dow and Nasdaq dropped two-tenths of one percent. In New York, Charlie Pellett, Bloomberg Radio.

Ed Kalengi 3:28

Iowa Republican U.S. 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 U.S. officials, President Trump's administration plans to surge officers to Chicago for an immigration crackdown in its latest move to expand the federal law enforcement pressure in major Democratic-run cities.