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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm John Tucker. Here

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Speaker 2: are these stories we're following today.

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Speaker 3: John, We begin with new developments this morning on global tariffs.

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Speaker 3: Bloomberg News has learned the Trump administration is working to

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Speaker 3: narrow its broad duties on steel and aluminum products. We

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Speaker 3: get more from Bloomberg Global Trades are Brendan Murray.

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Speaker 4: Well, what we know is the Trump administration has acknowledged

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Speaker 4: that the steel and aluminum tariffs that they rolled out

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Speaker 4: in waves last year are overly complicated for a lot

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Speaker 4: of companies and have really created a lot of unintended

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Speaker 4: victims that have to pay these tariffs. They rolled out

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Speaker 4: the first twenty five percent tariff and in March of

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Speaker 4: twenty twenty five.

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Speaker 5: Then they raised it to fifty percent in June, and

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Speaker 5: then in August they extended the scope of the tariffs

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Speaker 5: to include a whole host of maybe hundreds of goods

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Speaker 5: that contain steel and aluminum.

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Speaker 3: Bloomberg's Brendan Murray says ending or curtailing the derivative tariffs

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Speaker 3: would be a positive step for the US European Union

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Speaker 3: Trade Accord.

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Speaker 2: And meanwhile, Nathan. The Environmental Protection Agency has revoked a

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Speaker 2: key scientific finding that supported US regulations on greenhouse gas emissions.

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Speaker 2: Let's get that story from Washington and Bloomberg's Amy Morris.

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Speaker 6: The move recinds a two thousand and nine declaration that

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Speaker 6: carbon dioxide and other gases endanger public health. EPA administrator

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Speaker 6: Lee Zelden calls this a major deregulatory action. President Trump says,

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Speaker 6: ultimately it saves money.

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Speaker 2: This action will eliminate over one point three trillion dollars

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Speaker 2: of regulatory costs and help bring car prices tumbling down dramatically.

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Speaker 6: The so called endangerment finding serves as the legal foundation

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Speaker 6: for a lot of environmental rules, including federal standards for

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Speaker 6: vehicle emissions. Trump says he'll also repeal the Amy Morris

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Speaker 6: Bloomberg Radio All.

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Speaker 3: Right, Amy, thank you mon Capitol Hill, it's gone quiet.

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Speaker 3: The Senate has headed out for a week long recess.

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Speaker 3: The federal government is headed for its second partial shutdown

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Speaker 3: in as many months, and the third since President Trump

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Speaker 3: returned to office. This one will affect only the Department

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Speaker 3: of Homeland Security. The Senate failed to begin debate on

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Speaker 3: a year long bill for the agency that included no

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Speaker 3: changes to immigration enforcement. Senate minoriti leader Chuck Schumer says

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Speaker 3: that would have been unacceptable.

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Speaker 7: This vote today asked a simple question, will you rain

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Speaker 7: in ICE's abuses or will you vote to extend the chaos.

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Speaker 7: Republicans chose chaos, and the Democrats we refused.

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Speaker 3: Minority Leader Chuck Schumer says Democrats want immigration agents to

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Speaker 3: where body cameras and obtain warrants, take off masks, and

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Speaker 3: have limited immunity from lawsuits. Majority Leader John Thune says

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Speaker 3: the White House presented a good faith counteroffer, but he

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Speaker 3: says it looks like the Democrats aren't serious. Under a shutdown,

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Speaker 3: most DHS employees will be expected to work without pay.

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Speaker 3: That includes the Transportation Security Administration, which could mean a

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Speaker 3: strain at the airports and more.

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Speaker 2: Fallout. This morning from the Jeffrey Epstein scandal, Goldman Sachs

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Speaker 2: top lawyer Kathy Rembler leaving the firm. This follows a

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Speaker 2: cash of Department of Justice documents showing her links to

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Speaker 2: the SAX offender. Rembler, who's going to leave on June thirtieth,

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Speaker 2: was well known for a time as a White House

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Speaker 2: council in Barack Obama's administration. She was hired by Goldman

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Speaker 2: Sachs in twenty twenty and later became its legal chief.

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Speaker 3: All right, John, let's get you an update now on

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Speaker 3: the search for Savannah Guthrie's mother, Nancy. Tomorrow will be

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Speaker 3: two weeks since the Today Show host's mother was last

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Speaker 3: seen at her home near Tucson. The FBI has doubled

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Speaker 3: the reward for information leading to her captors to one

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Speaker 3: hundred thousand dollars, and investigators are asking neighbors to share

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Speaker 3: surveillance camera footage of suspicious cars or people they may

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Speaker 3: have seen in the month before she disappeared. This neighbor

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Speaker 3: just hopes they find Nancy Guthrie.

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Speaker 8: She was the kindest, formest, the most giving person I've

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Speaker 8: ever met, and has passed on to her daughter Savannah

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Speaker 8: as well because as how Sapana is.

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Speaker 3: The FBI has also released more information about the masked

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Speaker 3: man seen in surveillance video on Nancy Guthrie's front porch.

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Speaker 3: They now say he is a suspect. He's five nine

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Speaker 3: or five ten with an average build, wearing a black

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Speaker 3: twenty five liters Ozark trail hiker pack backpack.

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Speaker 2: And Venezuela is planning to grant more oil production land

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Speaker 2: to Chevron in Spain's REPSOL, as the Trump administration pushes

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Speaker 2: for private companies to rebuild that nation's energy sector. Sources

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Speaker 2: are telling Bloomberg that officials in Carancas are poised to

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Speaker 2: award the exploration of production blocks as soon as this week.

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Speaker 2: Energy Secretary Chris Wright spoke to Bloomberg's a Marie Hordern

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Speaker 2: about rebuilding the country's oil sector.

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Speaker 9: I think in the first year we'll see pretty significant

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Speaker 9: thirty forty percent growth in Venezuelan oil production. This year,

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Speaker 9: you can continue production growth rate at a pretty good clip.

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Speaker 9: Venezuela does have the largest proved oil reserves, which is

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Speaker 9: the technical concept, much larger than the.

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Speaker 2: US Energy Secretary Chris Wright speaking to Bloomberg's Amory hor

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Speaker 2: drning Caracas. But Trump administration is expected to issue a

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Speaker 2: general license to allow international oil companies to explore and

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Speaker 2: produce in Venezuela without violating US sanctions.

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Speaker 3: Let's turn to the markets now, John. Following another tech

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Speaker 3: fueled sell off on Wall Street, which saw the Nasdaq

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Speaker 3: fall two percent yesterday, this morning, futures are mixed, but

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Speaker 3: shares of applied materials are surging. They're twelve percent now

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Speaker 3: in the pre market. The largest US supplier of chip

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Speaker 3: making gear delivered an upbeat sales forecasts, signaling demand for

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Speaker 3: artificial intelligence and memory semiconductors is fueling equipment purchases. Federal

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Speaker 3: Reserve Governor Stephen Myron is once again calling for lower

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Speaker 3: interest rates. He says the biggest risk to the economy

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Speaker 3: right now is policymakers underestimating how much rates are restraining growth.

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Speaker 10: It's still slacking the economy. Increased potential output that can

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Speaker 10: be accommodated by looser monitor policy. And so the combination

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Speaker 10: of these things leads me to think that montary policy

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Speaker 10: is tighter than it needs to be, and that we

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Speaker 10: can we can, we can afford to have lower interest rates.

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Speaker 3: FED Governor Stephen Myron spoke at an event in Dallas.

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Speaker 3: He says underlying inflation is very close to the Fed's

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Speaker 3: two percent target.

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Speaker 2: And another big payday for a banking boss. City Group

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Speaker 2: has boosted the pay chief executive officer Jane Fraser to

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Speaker 2: forty two million dollars, a twenty two percent increase follows

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Speaker 2: a year in which City Group stock rows sixty six percent.

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Speaker 2: That's more than any other Roll Street bank. The pay

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Speaker 2: bump puts Fraser's total package for the year of twenty

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Speaker 2: twenty five just a million dollars behind that of JP

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Speaker 2: Morgan Chase CEO, Jamie Diamond.

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Speaker 4: And John.

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Speaker 3: We're watching the skies this morning, with NASA said to

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Speaker 3: launch four astronauts to the International Space Station, replacing a

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Speaker 3: crew that had to be evacuated early due to a

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Speaker 3: medical issue. This is Crew twelve's mission aboard a SpaceX

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Speaker 3: found nine rocket. The pre dawn launch was delayed by

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Speaker 3: two days due to adverse weather conditions across the East Coast.

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Speaker 3: These astronauts are expected to arrive at the orbiting iss

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Speaker 3: by tomorrow afternoon.

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Speaker 2: Hey, that brings us to a five pot one on

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Speaker 2: Wall Street. Time for a look at somebody other stories

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Speaker 2: making news in New York and around the world, and

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Speaker 2: for that which run by Bloomberg's Michael Barr. Michael, good morning,

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Speaker 2: Good morning John.

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Speaker 8: It's a victory for the Gateway Tunnel project under the

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Speaker 8: Hudson River in New York. The Trump administration is expected

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Speaker 8: to restore federal funding for the tunnel construction after a

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Speaker 8: deadline passed for an appeals court to block a judge's

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Speaker 8: order to release the money. New York Attorney General Letitia

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Speaker 8: James and New Jersey Acting Attorney General Jennifer Davenport said

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Speaker 8: the administration must immediately release funding for the project. As

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Speaker 8: the order is now in effect, the federal government could

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Speaker 8: still ask the Supreme Court to put the judges order

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Speaker 8: on hohold. A federal judge agreed to block the Pentagon

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Speaker 8: from punishing Senator Mark Kelly for taking part in a

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Speaker 8: video telling troops to resist unlawful orders. It comes days

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Speaker 8: after a federal grand jury refused to bring charges against

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Speaker 8: the group of Democratic lawmakers for the same video. Defense

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Speaker 8: Secretary Pete Hegseeth moved to demote Kelly from his rank

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Speaker 8: of captain. However, US District Judge Richard Leon ruled that

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Speaker 8: Pentagon officials not only violated at Kelly's First Amendment free

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Speaker 8: speech rights, but they also threatened the constitutional liberties of

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Speaker 8: millions of military retirees. Kelly spoke after the judge's ruling,

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Speaker 8: so again.

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Speaker 4: This isn't about me, a Scott.

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Speaker 3: This is about an administration that is out of control

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Speaker 3: on so many different levels.

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Speaker 8: Some Republicans' support for Hexas's move, but others like GOP.

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Speaker 8: Senator Mkowski accused the administration of trying to make criminals

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Speaker 8: out of lawmakers. Senator Kelly says he's fighting because retired

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Speaker 8: service members have told him they change what they say

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Speaker 8: and do because of how President Trump is acting. The

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Speaker 8: Pride Flag is flying once again at the historic Stonewall

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Speaker 8: Inn in Greenwich Village, New York City. Elected officials raised

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Speaker 8: the flag once again. Earlier this week, the National Park

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Speaker 8: Service removed the rainbow flag at the federal monument dedicated

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Speaker 8: to LGBTQ, Wright, saying it was in line with administration guidelines.

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Speaker 8: Global News twenty four hours a day and whenever you

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Speaker 8: want it with Bloomberg News Now. I'm Michael Barr, and

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Speaker 8: this is Bloomberg. Thanks Michael.

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Speaker 3: Time now for a Bloomberg Sports update. For that, we

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Speaker 3: bring in John stash Hour.

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Speaker 11: Last game before the NBA All Star Break, the Lakers

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Speaker 11: won by twenty over Dallas and Lebron James, at age

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Speaker 11: forty one, scored or assisted on each of the lakers

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Speaker 11: first twenty three points. It never done that before in

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Speaker 11: an NBA game. Man had a triple double, the oldest

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Speaker 11: to ever do that. At the Olympics today, the play

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Speaker 11: Italy and the women's hockey quarterfinals, the US team is

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Speaker 11: four and o by a combined score of twenty to one.

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Speaker 11: And in men's finger skating, the American Ilia Malinin goes

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Speaker 11: for the gold. That's a Bloomberg Sports update. Stay with us.

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Speaker 3: More from Bloomberg Daybreak coming up after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager. The White House may be

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Speaker 3: ready to do some tinkering with a piece of President

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Speaker 3: Trump's terriff regime that has proven complicated. Bloomberg News has

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Speaker 3: learned the administration's working to narrow its broad duties on

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Speaker 3: steel and aluminum. For more, we're joined by Bloomberg News

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Speaker 3: Global Trades are Brendan Murray Brendon, Good morning. What are

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Speaker 3: we hearing about the Trump Administration's plans here?

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Speaker 12: So, if you recall, the President put twenty five percent

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Speaker 12: tariff on steel and aluminum in March of last year,

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Speaker 12: then he raised it to fifty percent in June of

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Speaker 12: last year, and then and then he added about four

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Speaker 12: hundred products that that have steel and aluminum in them

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Speaker 12: in August, So he that captured a lot of imports

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Speaker 12: and created some collateral damage from companies that use steel

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Speaker 12: and aluminum. You can imagine how hard it is to

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Speaker 12: figure out how much of the contents of a product

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Speaker 12: you import contain steel and aluminum. And those companies have

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Speaker 12: complained to the White House, and the White House has

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Speaker 12: acknowledged that the complexity has gotten to to uh to

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Speaker 12: too much for these companies to handle. So it sounds

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Speaker 12: like our reporting says that the administration is going to

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Speaker 12: come at this with a more tailored approach rather than

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Speaker 12: the sort of shotgun approach they had last year.

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Speaker 3: So what would a tailored approach necessarily look like.

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Speaker 12: Well, they could they could pull back the the derivative

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Speaker 12: product tariffs that they that they rolled out in August.

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Speaker 12: That really annoyed the Europeans because the Europeans just a

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Speaker 12: few weeks earlier had negotiated a trade deal with the

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Speaker 12: US and when they and when they hit these other

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Speaker 12: hundreds of products, the Europeans were like, you know, I

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Speaker 12: thought we had a deal here, but but but you've

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Speaker 12: just hit us with a whole lot more so, they

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Speaker 12: could they could pull those back, They could create some

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Speaker 12: exclusions for the for for tariffs that companies are are

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Speaker 12: having trouble paying uh. And so ultimately these were designed

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Speaker 12: to protect the steel industry, but what they've done is

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Speaker 12: they've hit the users of steel, the domestic users of steel.

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Speaker 5: UH.

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Speaker 12: And you could all you have to look at is

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Speaker 12: Ford in general. Motors this week said that they paid

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Speaker 12: five billion dollars combined last year in US tariffs. And

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Speaker 12: that's because automakers use a lot of steel and aluminum.

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Speaker 3: So is this the kind of thing that could smooth

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Speaker 3: over the US EU trade deal? I mean, there's been

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Speaker 3: a lot of back and forth in terms of getting

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Speaker 3: this thing ratified.

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Speaker 12: Yeah, that's the derivative product issue has been a big

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Speaker 12: hang up for the Europeans. And and if and if

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Speaker 12: it can be if it could be dealt with, and

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Speaker 12: then that will go a long way toward resolving some

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Speaker 12: of Brussels's issues with the tariffs as they see them.

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Speaker 8: Now.

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Speaker 12: The implementation of that deal is still hasn't been fully

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Speaker 12: carried through on the European side, and so that could

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Speaker 12: help bring that deal over the line.

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Speaker 3: Of course, Brendany, as you know, This is coming at

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Speaker 3: a time where a lot of Americans are concerned about

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Speaker 3: the cost of living and whether tariffs are feeding into that.

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Speaker 3: Is that part of the calculus here from what you're

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Speaker 3: hearing from the White House as far as these steal

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Speaker 3: and aluminum tariffs go, that this could be a means

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Speaker 3: to address some of those concerns.

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Speaker 12: Absolutely, we've heard from both the Federal Reserve and the

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Speaker 12: Congressional Budget Office this week that American consumers and businesses

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Speaker 12: are paying the lion's share of the tariff bill, and

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Speaker 12: we're going to get some consumer price numbers this morning,

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Speaker 12: so we'll see how inflation looks as it stood in January.

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Speaker 12: So absolutely, the White Houses is trying to moderate its

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Speaker 12: approach given the pressures that are coming from Congress and

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Speaker 12: from and from consumers on the cost of living and

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Speaker 12: the affordability.

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Speaker 3: Issue, and given the potential impact here on the auto industry.

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Speaker 3: What could this mean for the you know, the ongoing

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Speaker 3: negotiations around the US Mexico Canada agreement. We've been reporting

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Speaker 3: that President Trump is at least privately talking about why

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Speaker 3: don't I just walk away from it?

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Speaker 12: Yeah, exactly, so that the President Trump has really been

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Speaker 12: picking on the Canadians recently and in Mexico and Canada. Uh,

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Speaker 12: you know, would be would be inter woven into the

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Speaker 12: auto supply chain with the US and Mexico and Canada.

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Speaker 12: Also you know have a lot of you know, sort

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Speaker 12: of steel and aluminum imports. So it all factors into

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Speaker 12: the broader negotiations that are going to take place this

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Speaker 12: year for that North American free trade agreement.

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