Bloomberg News Now: Comey Indicted, Trump Tariffs, TikTok Deal, and Inflation Data

Legal and Political Developments

• ⚖️ James Comey, former FBI Director, has been criminally indicted for lying to Congress and obstruction related to testimony about the Hillary Clinton investigation.
• 🏛️ The indictment was announced by a federal prosecutor handpicked by President Trump, following her predecessor's resignation.
• 🗣️ President Trump commented on Comey, calling him a "bad person" and a "sick guy," referencing his 2017 firing of Comey during the Russian interference investigation.
• ✉️ Comey responded, expressing heartbreak for the DOJ but confidence in the judicial system, asserting his innocence and requesting a trial.

Trade War and Tariffs

• 📈 President Trump announced a new round of tariffs on pharmaceuticals, heavy trucks, and furniture, expanding his tariff regime.
• 💊 A 100% tariff on patented drugs will be imposed unless manufacturers build plants in the U.S., set to begin October 1st.
• 🚚 Imported heavy trucks will face a 25% duty, while kitchen cabinets, bathroom vanities, and upholstered furniture imports will be taxed at 50% and 30% respectively.
• 🌍 European drug makers saw stock declines following the announcement.

TikTok Deal and US Operations

• 📱 President Trump signed an executive order allowing TikTok to continue operating in the US under a new framework involving Oracle.
• 🤖 Oracle will audit TikTok's algorithm, ensuring American investors control it and prevent its use as a propaganda tool.
• 💰 The US version of TikTok is valued at approximately $14 billion, with Oracle, Silver Lake, and an Abu Dhabi-based company in talks to invest and receive board seats.
• 💸 While the US will not receive an equity stake, President Trump stated the US government will profit from taxes on the deal.

Market and Economic Watch

• 📊 S&P futures showed little change after three consecutive days of losses on Wall Street.
• 🛍️ Key readings on consumer spending and inflation are anticipated before the market opens, with consumer spending expected to have remained strong in August.
• 📉 Investors are closely monitoring personal consumption price indexes for insights into the Federal Reserve's future plans, as inflation remains above the Fed's 2% target.