Marketplace Morning Report

We're continuing to follow President Donald Trump's campaign against U.S. central bank independence. His move to fire Federal Reserve Governor Lisa Cook over unproven allegations of mortgage fraud has now been challenged by a lawsuit from Cook. Fed independence has been a strength of the U.S. financial system, but what happens if that disappears? We turn to Hungary as a case study. Plus, consumers spend on tech, and we discuss the latest inflation reading.

Much of the movement of the S&P 500 stock index is driven by just seven stocks. Known as the “Magnificent Seven,” they comprise Nvidia, Apple, Microsoft, Amazon, Meta, Alphabet, and Tesla, and are valued at around $20 trillion. Is this a bubble ready to burst? An overvaluation? Or something else entirely? But before we get to that story, we'll learn more about the first court hearing in a case that tests the Federal Reserve's independence.

From the BBC World Service: The United States has ended a long-running global tax exemption on imports worth $800 or less. It's kept goods purchased online inexpensive for many American shoppers. We'll hear more. Then, the Japanese defense ministry wants to triple spending on drone manufacturing as part of a $60 billion budget request. And, the last newspaper hawker in Paris has been honored with the Order of Merit by French President Emmanuel Macron.

Three years ago, then-President Biden signed the CHIPS and Science Act into law, with hopes of giving the U.S. semiconductor industry a boost amid strategic competition with China. Since then, the federal government has been funneling billions into the sector, including STEM education investments. Yet, according to a new study, there's still a shortage of skilled workers to fill critical chip production jobs. But first, a recent grad reflects on automation in the job-hunting process.

President Donald Trump has been relentlessly trying to increase control over the Federal Reserve, most recently with his attempt to fire Fed Governor Lisa Cook. The Fed controls the Federal Funds Rate, which is currently at around 4.5%; the president wants it down to 1%. So, what if that happened? We'll outline the ripple effects. Also: Nvidia didn't meet Wall Street's lofty expectations, and Cracker Barrel's logo saga shows us the power of upset consumers.

From the BBC World Service: Thousands of workers are rallying in Jakarta and 38 other Indonesian provinces to demand higher wages and lower taxes. Plus, BBC data shows cheap goods shipped from China to the United Kingdom more than doubled last year to over $4 billion. And, a Kenyan tech company is encouraging the use of bitcoin in one of Africa's largest slums in hopes of promoting financial inclusion and boosting the area's economy.

While Federal Reserve Governor Lisa Cook's lawyer says she will sue to challenge the president's move to fire her, the White House is reportedly getting ready to appoint Cook's replacement. Today, we'll unpack how this battle is impacting markets as the Trump administration continues to test the limits of its authority. And later, we'll hear about tariff-related anxiety from India, including from a South Indian hub supplying global clothing brands and Mumbai's diamond workshops.

You may have heard that big things come in small packages. Now, tariffs do too. The "de minimis" tariff exemption for purchases less than $800 ends Friday. Parcels will then be subject to the tariff for whatever country from which they're shipped. Plus, why Nvidia's quarterly results are a big deal and how a less independent Federal Reserve could affect the value of the U.S. dollar.

From the BBC World Service: It's a tough day for India. Most of its exports to the United States will now face a 50% tariff. It's a major shift between the two countries, which used to be partners, especially in tech and defense. We'll learn about the impacts. Plus, European carmakers are claiming that hitting the EU's 2035 CO2 emissions targets is no longer realistic. Plus, a K-pop-themed musical has become the most-watched movie on Netflix.

Americans drink some 450 million cups of coffee each day. Coffee beans from Brazil face a 50% U.S. import duty. And while President Donald Trump's tariffs aim to reshore American production and manufacturing, coffee beans can't really be grown around the U.S. We'll hear what sort of trouble's brewing for coffee sellers as a result. But first, we'll break down the attempted firing of one of America's central bankers.

That's the conclusion of Karen Petrou at Federal Financial Analytics after President Donald Trump moved to fire Federal Reserve Governor Lisa Cook last evening. That follows unproven allegations of mortgage fraud. Whether or not the move is legal, it raises additional concerns over the independence of America's central bank and the dollar's role as the global reserve currency. And later: What's the relationship between the Fed's benchmark rate and mortgage rates?

From the BBC World Service: Japan and Australia are among the latest countries suspending some postal deliveries to the United States. And it's all down to confusion over tariffs. President Donald Trump signed an executive order last month ending the global import tax exemption on small packages worth under $800 entering the U.S. duty-free, a change due to take effect on Friday. Also, Boeing and Korean Air have announced a deal worth $36 billion for over 100 planes.

After celebratory markets late last week following indications that the Federal Reserve will lower interest rates at its September meeting, this week is starting with a bit of a headache. Markets are eager for a rate cut, but signs of a weaker labor market and uncertainty from tariff and immigration policy are complicating the economic picture. Then, Australia is hoping to ease the rare earths bottleneck after China said it's tightening controls on mining and processing.

Keurig Dr Pepper plans to acquire the coffee and tea company JDE Peet's for about $18 billion. The idea is to shore up Keurig's coffee business. But the brands coming under one umbrella would be Dr Pepper, 7UP, Canada Dry, Yoo-hoo, A&W, Stumptown, and Maxwell House, to name a few. We'll learn more about the deal. Plus, why the Fed's focus is shifting from inflation to the job market, and how colleges are bracing for a higher ed recession.

From the BBC World Service: Chinese property giant Evergrande's shares have been delisted from the Hong Kong Stock Exchange; it was once China's largest real estate firm but collapsed under a mountain of debt. Today, we'll trace its spectacular rise and fall. Rare earths have been a major sticking point in trade negotiations between China and the United States. China has dominated the rare earths market, but could Australia become a rival?

We learned yesterday that business activity in the U.S. picked up in August, led by a big advance in the manufacturing sector. Manufacturing had been in a slump, but recorded its strongest growth in orders in 18 months. Is it the start of a bigger trend or just a blip? Then, Evergrande — once one of China's biggest property developers — is having its shares delisted from Hong Kong's stock exchange. Its ruinous downfall has threatened to weigh down the world's second-largest economy.

The fashion world has the Met Gala. The movies have the Oscars. Central banking has an annual gathering in Jackson Hole, Wyoming. Fed Chair Jerome Powell will deliver a speech, where economists will be listening for clues on interest rates. But there's another pressing issue looming over Powell's speech: a new five-year framework for the Fed's interest rate strategy. We have an explainer. Plus, there's new evidence that first-time homebuyers remain undeterred.

From the BBC World Service: A trade agreement between the United States and the European Union means that U.S. tariffs on imported European goods will be significantly lower than previously thought. The U.S. will cap tariffs on European cars, pharmaceuticals, and semiconductors at 15%. That's a huge decrease from prior threats of levies as high as 250%. Plus, it's the Edinburgh Festival Fringe in Scotland, showcasing drama, comedy, and music. The tourism provides an economic boost, but also makes things pricier. How are folks there dealing?

President Donald Trump recently demanded that Federal Reserve Governor Lisa Cook resign after she was accused of mortgage fraud. In a statement, Cook said she has no intention of being "bullied to step down" and that she's "gathering the accurate information to answer any legitimate questions." We'll hear more. Plus, a weakening labor market sets the backdrop for the Fed's annual Jackson Hole conference, and Microsoft's AI chief voices concerns about "AI psychosis."

Federal Reserve Chair Jerome Powell is set to speak tomorrow in Jackson Hole, and we'll be watching for hints about the future of interest rates. But one tricky part of the inflation equation? Rent. Higher interest rates have kept many would-be homebuyers in the rental market, which boosted overall demand and pushed rents higher. Then, just how stable are stablecoins? We'll provide an update on the state of play in the crypto market.

From the BBC World Service: The impact of U.S. tariffs is already starting to hit consumers' pocketbooks. Imports from Japan to the United States have been subject to a 15% tariff for three weeks, and now Japanese electronics company Sony is bumping the price of its PlayStation 5 consoles by $50 — but only in the U.S. Also on today's show: concerns over AI psychosis and scrutiny over French mineral water.

The prestigious Santa Fe Indian Market draws over 1,000 Indigenous artists from more than 200 tribal nations each year, including First Nations, Inuit, and Métis artists from Canada. But this year, economic policies from the Trump administration have complicated things for those traveling from north of the border. We'll chat with a few artists. Also on the show: India and China will restart direct flights, and mortgage rates dip, but not enough to boost demand.

Commerce Secretary Howard Lutnick has confirmed that the Trump administration is considering taking a stake in the struggling U.S. chipmaker Intel. The arrangement would be unusual but not unprecedented. And Intel was already getting a federal grant under the CHIPS and Science Act, approved during the Biden administration. Also on the show: a dispatch from the annual World AI Conference in Shanghai and a look at the pluses and minuses of retailers using third-party vendors.

From the BBC World Service: Hundreds of thousands of avid video gaming fans are gathering in Cologne for Gamescom 2025, the world's largest annual video game event. It comes at a time when the industry is struggling with studio layoffs, increased competition in a crowded market, and rising costs. Plus, a centuries-old church in Sweden has begun a slow-motion journey to make way for the expansion of the world's deepest iron ore mine.

Many garment factories have shuttered amid a decades-long decline in U.S. apparel production, and tariffs won't be enough to bring them back. But higher-end, higher-quality clothing can still be made at a profit stateside. Today, we'll take lessons from one suit factory in New Bedford, Massachusetts. But first: Home Depot reported disappointing profits this morning, and more retailers are having to weigh price costs, dwindling warehouse inventories, and price-conscious consumers.

Experts are still in the early stages of understanding just how much generative AI will disrupt the labor force. A new report by MIT finds that the adoption of AI led some firms to cut back spending on jobs that were often already being outsourced — things like customer support, software engineering, and administrative tasks. We'll learn more. Also: the dollar's role as the world's "reserve currency" and a $2 billion lifeline for Intel.

From the BBC World Service: Japan's SoftBank has invested $2 billion in U.S. chipmaker Intel, which has been losing ground lately in the booming AI market. It also comes as the U.S. government weighs whether to take a direct stake in the company. And, as historic White House talks spark hopes of a Putin–Zelensky summit, the war in Ukraine grinds on, with Russia turning to North Korea to plug major labor gaps.

It's a big week for Fed watchers. Federal Reserve Chair Jerome Powell is scheduled to speak at a research conference on Friday in Jackson Hole, Wyoming. It comes at a tricky time for the Fed — pressures are weighing on both price stability and maximum employment, and there's ire coming from President Donald Trump. We'll discuss what to expect. Plus, global demand for cassava is growing. Can Nigeria capitalize on the moment and become an export giant?

Consumer spending was up pretty significantly for more expensive items last month — things like cars and furniture. All that big-ticket buying comes despite a softening labor market and broader economic uncertainty. We'll parse the data a bit more. Also on the program: we'll hear what we can expect from homebuilder confidence and learn how the startup world is grappling with tariffs and the cancellation of government grants and contracts.

From the BBC World Service: A court in Australia has handed the airline Qantas a record fine — just under $59 million USD — for illegally laying off 1,800 ground staff during the COVID-19 pandemic. And later, could plans for sweeping tax cuts on consumer goods boost India's economy in the face of U.S. tariffs? Plus, the root vegetable cassava is one of the world's most versatile crops. We'll hear more about Nigeria's cassava market.

President Trump reportedly has floated a plan that would have the U.S. government take partial control of Intel, the ailing chipmaking giant. We look at how a potential deal might shake out and what obstacles it could face. Then, on the other side of the Pacific, workers at Chinese AI companies are working long hours in the heated global AI race. And finally, the BBC's Jane Chambers reports on the economic malaise in Bolivia that's shaping this weekend's elections.

Target and Ulta have announced an end to their partnership, effectively closing hundreds of Target-based Ulta locations opened since 2021. We look at how differing business models and clientele led to the breakup. Then, a report on the latest developments from the Trump-Putin summit in Alaska. And finally, we delve into a new report that explores why many hospital patients suffering from mental illness are discharged into nursing homes.

From the BBC World Service: The world's first humanoid robot games in China involve soccer, dancing, and boxing. But it's not just about the sport; the event is also designed to attract investment. Then, as Bolivia heads to the polls this weekend, an economic crisis is front and centre in voters' minds. And later, UN talks on a global plastics treaty have ended without a deal.

President Donald Trump fired the commissioner of the Bureau of Labor Statistics earlier this month, claiming that the monthly jobs numbers — which were revised downward — were “rigged” to make him look bad. Plenty of companies use BLS data to make business decisions. With questions raised about the quality and regularity of that data now, how do alternate data sources compare? Also: a flare of inflation at the wholesale level and a comeback for adjustable-rate mortgages.

In addition to the many considerations surrounding cost, those who lost homes in this year's California wildfires may also be looking for an environmentally-friendly way to rebuild that's able to withstand the next fire. Today, Marketplace's David Brancaccio explores mass timber, which doesn't burn easily, as an option for home reconstruction. But first, New York's attorney general is suing the company that runs Zelle, alleging its customers were left open to fraud.

From the BBC World Service: Talks on the world's first legally binding treaty to end plastic pollution are coming to an end, and so far, there's no deal. What are the major sticking points, and what's the likelihood of finalizing an agreement? Then, dairy farmers in the United Kingdom are warning that a chronic shortage of skilled workers is threatening the country's food security. And later, Fortnite could return to Australian smartphones.

Recently, President Donald Trump fired the head of the Bureau of Labor Statistics after revisions depicted a weaker job market than initially thought. This week, Trump called on the CEO of Goldman Sachs to get rid of his chief economist, after the economist predicted that tariffs would force consumers to pay extra. What should consumers and investors make of this? We'll discuss. And later, we'll hear how French factories are benefiting from increased defense spending.

Social Security turns 90 tomorrow. Some 74 million Americans receive the benefits, and a new survey shows that 65% of retirees rely on them. Roughly 40% of Americans have no retirement savings at all, and this precarity comes at a time when Social Security faces the possibility of benefit cuts. Plus, Trump's tariffs are generating billions in revenue monthly, and Brazil's president announced $5 billion to help smaller companies deal with tariffs.

From the BBC World Service: United Kingdom-based engineering giant Rolls-Royce first made its name in luxury cars, but after selling its motor business nearly 30 years ago, it's now known for its aircraft engines and defense manufacturing. Speaking exclusively to the BBC, its CEO is betting on artificial intelligence and nuclear technology as a path to becoming the UK's highest-valued company. Plus, why have European countries been stepping up their defense spending?

Philadelphia, Boston, and Seattle have all experienced strikes by trash collection workers this summer. At their peak, more than 2,000 workers coast to coast walked off the job after contract talks stalled. The Teamsters Union representing the workers says members deserve a pay rise and better health care benefits. We'll hear from the picket line and customers affected. But first, a Texas-based manufacturer reflects on what all this tariff back-and-forth means for business.

Each year, pediatricians order vaccines in anticipation of the winter respiratory virus season. But plummeting demand and confusion over vaccine recommendations have thrown the process into chaos, forcing some doctors to gamble and order vaccines they may not be able to use. We'll hear more. But first, the White House has again extended its trade truce with China, and the president's tariffs hit toy stores, which buy most of their products overseas.

From the BBC World Service: It came right down to the wire, but the U.S. and China have extended their trade truce until November. This means those massive American tariff hikes — some as high as 145% — have been put on hold, as Beijing was ready to hit back with 125% tariffs. But could another 90 days be enough time to strike a deal? Plus, this summer, several U.S. cities have been gripped by trash collection strikes. We'll hear more.