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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 Karen Moscow. Here

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

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Speaker 3: Karen, we begin with the latest developments on global trade.

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Speaker 3: President Trump is threatening a thirty five percent tariff on

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Speaker 3: some Canadian goods. That's an increase from the current twenty

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Speaker 3: five percent rate and would take effect August first. But

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Speaker 3: as Bloomberg's Bill Ferries reports, the increase would not affect

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Speaker 3: goods that are shipped under the terms of the current

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Speaker 3: US Mexico Canada agreement.

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Speaker 4: That might be a little misleading as a headline number.

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Speaker 4: I mean, our understanding of this is that it would

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Speaker 4: not apply to products or goods and services that are

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Speaker 4: already covered under this US MCA trade agreement with Mexico,

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Speaker 4: Canada and the US. So that's the majority of goods

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Speaker 4: traded between the US and Canada right there. So things

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Speaker 4: like energy as well are subject to a lower ten

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Speaker 4: percent tariff. In terms of thirty five percent, I think

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Speaker 4: we're going to need a lot more details from the

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Speaker 4: White House before that goes into place about which products,

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Speaker 4: But it doesn't look like that kind of broad swath

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Speaker 4: of tariffs across everything that comes south from Canada.

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Speaker 5: And Bloomberg spil Ferries reports.

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Speaker 3: President Trump's announcement on Canada came as he told NBC

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Speaker 3: News he's also eyeing blanket tariffs of fifteen to twenty

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Speaker 3: percent on most trading partners well Nathan.

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Speaker 2: Vietnam is seeking to lower its tariff rate by the US.

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Speaker 2: Sources say the country's leadership was caught off guard by

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Speaker 2: President Trump's announcement last week of a twenty percent tariff.

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Speaker 2: Vietnam is pushing for a tariff in the ten to

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Speaker 2: fifteen percent range.

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Speaker 3: And Karen Brazilian President Luis and Assio Lula de Silva

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Speaker 3: says his country can survive without trade with the US

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Speaker 3: and we'll look to other partners to replace America. In

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Speaker 3: a broadcast interview, Lula said Brazil's trade with the US

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Speaker 3: represents one point seven percent of its GDP and quoting here,

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Speaker 3: it's not like we can't survive without the US. Earlier

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Speaker 3: this week, President Trump threatened fifty percent tariffs against Brazilian imports.

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Speaker 2: Meanwhile, Nathan tariffs on China remain in the spotlight. This morning,

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Speaker 2: Secretary of State Margo Rubio met his Chinese Counterpartwang Yi

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Speaker 2: and Malaysia. It's the first in person session between the

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Speaker 2: CHIU and a possible prelude to a presidential summit. The

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Speaker 2: US and China agreed in May to temporarily slash their

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Speaker 2: high tariffs imposed on each other.

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Speaker 3: Now, when it comes to the impact tariffs will have

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Speaker 3: on inflation, Karen Federal Reserve Bank of Saint Louis President

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Speaker 3: Albertomusalem says it's too soon to tell.

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Speaker 5: He spoke at an event in Saint Louis yesterday.

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Speaker 6: The outlook for inflation that I have, in accordance with

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Speaker 6: what many private forecasters have, is for inflation to increase

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Speaker 6: going forward, mostly owing to tariffs, which may settle somewhere

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Speaker 6: between the low teens or the low twenties, depending entree Poulsy.

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Speaker 3: Saint Louis FED President Alberto Mussalm says the tariff impact

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Speaker 3: on inflation has been mild so far, but he expects

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Speaker 3: it to show up more in data starting in June, July, August,

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Speaker 3: or September.

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Speaker 2: Nathan President Trump says he plans to make a major

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Speaker 2: statement on Russia on Monday. In an interview with NBC News,

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Speaker 2: the President repeated as criticisms of Russian President Vladimir Putin

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Speaker 2: over his continued attacks in Ukraine. He says he expects

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Speaker 2: to send it to pass a tougher sanctions bill sponsored

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Speaker 2: by Republican Lindsey Grahm, though his option on whether to

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Speaker 2: use it. It's his option, though, on whether to use it,

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Speaker 2: and he says he's reached an agreement with NATO for

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Speaker 2: allies to buy US weapons that would then be sent

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Speaker 2: to Ukraine.

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Speaker 3: To the latest Karen on the flood disaster in Texas,

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Speaker 3: President Trump plans to visit Hill Country today, where at

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Speaker 3: least one hundred and twenty people were killed in last

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Speaker 3: weekend's flash floods and more than one hundred and seventy

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Speaker 3: are still missing. Fredericksburg, Texas Fire Marshall Reagan Rapki says

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Speaker 3: more than two thousand local, state, and federal workers are

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Speaker 3: still searching for victims in Kerr County.

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Speaker 7: And we have heavy e quest working and we're having

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Speaker 7: to dig through it by hand as well, just because

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Speaker 7: the machines can go through it.

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Speaker 8: We have to be very methodical about what we're doing.

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Speaker 3: It's Fredericksburg Fire Marshall Reagan Rabkey. President Trump's expected to

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Speaker 3: get an aerial tour of some of the hard hit

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Speaker 3: areas and meet with first responders and relatives of flood victims.

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Speaker 3: Texas's two Republican senators are expected to join the President

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Speaker 3: to board Air Force One.

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Speaker 2: Let's turn to the markets now, Nathan, where futures are

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Speaker 2: lower as we close out the trading week. Yesterday, the

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Speaker 2: S and P five hundred closed at a record as

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Speaker 2: at nears the sixty three hundred level. Veronica Willis is

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Speaker 2: global investment strategist at Wills Fargo Bank.

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Speaker 9: The market's seen a really impressive rally from those lows

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Speaker 9: earlier this year, maybe has gotten a little bit ahead

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Speaker 9: of itself. There's still some uncertainties related to trade. We've got,

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Speaker 9: you know, earning season coming up, which could start to

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Speaker 9: see some of those impacts around that uncertainty around prices

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Speaker 9: and uncertainty around tariffs.

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Speaker 2: Wells Fargo Banks Veronica Willis. The S and P five

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Speaker 2: hundred is up almost seven percent so far this year.

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Speaker 3: Now, while stocks have been reaching new heights, Karen So

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Speaker 3: has Bitcoin. It's trading at another all time high this

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Speaker 3: morning at about one hundred and eighteen thousand dollars per token.

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Speaker 3: Analysts say the rally's triggered a major unwinding of short positions,

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Speaker 3: with more than a billion dollars worth of bets against

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Speaker 3: bitcoin being liquidated. Investors have also poured a net one

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Speaker 3: point two billion dollars into bitcoin ETFs Nathan.

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Speaker 2: In Europe, the UK economy shrank for eight second straight

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Speaker 2: month as companies and consumers struggle to bounce back from

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Speaker 2: the blow dealt by US tariffs and a raft of

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Speaker 2: tax increases grows. Domestic product declined one ten percent in May,

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Speaker 2: after contracting three tenths percent the previous month.

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Speaker 3: And staying in Europe Karen. Shares of BP are up

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Speaker 3: two and a half percent. The oil giant says it

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Speaker 3: expects to report rising production and a strong result from

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Speaker 3: its oil trading business for the second quarter.

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Speaker 2: Time. Now for look at some of the 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 we're joined by Bloomberg's Michael Barr Michael Goodmore.

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Speaker 10: Good Morning, Karen. A federal judge in New Hampshire has

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Speaker 10: blocked President Trump to move forward with his ban on

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Speaker 10: birthright citizenship. The Supreme Court determined federal judges could not

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Speaker 10: issue sweeping nationwide injunctions against many of President Trump's policies,

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Speaker 10: but the plaintiffs worked around that ruling by filing a

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Speaker 10: class action lawsuit on behalf of all children born in

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Speaker 10: the US after February twentieth. Cody Wafsei is the deputy

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Speaker 10: director of the ACLU's Immigrants' Rights Project and the lead

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Speaker 10: attorney on the class action lawsuit.

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Speaker 7: So, no matter how much the Trump administration may dislike it,

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Speaker 7: they cannot break it, they cannot ignore it. It is

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Speaker 7: the right of every child born in this country.

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Speaker 10: Palestinian activist Mackmoud Khalil's role in Columbia campus protests against

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Speaker 10: Israel led to his detention for over three months in

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Speaker 10: immigration jail. Now he's seeking twenty million dollars in damages

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Speaker 10: from the Trump administration. His lawyers filed to claim a lledging,

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Speaker 10: false imprisonment, and malicious prosecution after his March arrest by

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Speaker 10: federal agents. Khalil, a legal US resident, said he suffered

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Speaker 10: severe anguish in jail. The government has accused Khalil of

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Speaker 10: leading protests aligned with a moss but has not provided

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Speaker 10: any evidence of a link. New York City Mayor Eric

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Speaker 10: Adams campaign says he has raised more than a million

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Speaker 10: dollars for his re election effort in a single night

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Speaker 10: at a fundraiser in Manhattan. According to a person familiar

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Speaker 10: with the matter, Wednesday's fundraiser was attended by several hundred

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Speaker 10: people and more than eight hundred donated. Adams said the

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Speaker 10: passion against Zoron Memdani will ultimately propel him to win

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Speaker 10: a second term. Heard on Bloomberg yesterday, Adams once again

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Speaker 10: said that former New York Governor Andrew Cuomo, who is

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Speaker 10: also running as an independent, should drop out of the race.

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Speaker 8: We both interacted, and I said you should step aside

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Speaker 8: for the good of this city.

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Speaker 5: We both agreed the city.

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Speaker 8: Were moving the wrong to deal direction under the primary winner,

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Speaker 8: and I think he should do the right thing.

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Speaker 10: Global News twenty four hours a day and whenever you

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Speaker 10: want it with Bloomberg News. Now him Michael barrn, this

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Speaker 10: is Bloomberg Herron.

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Speaker 2: All right, Michael barr thank you some time now for

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Speaker 2: the Bloomberry sports update. Here's John Stanshawer.

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Speaker 5: John, Good morning, Good morning, Karen.

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Speaker 8: Late in the Yankees game of Seattle at the stadium,

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Speaker 8: the question was not would the Yankees win, it was

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Speaker 8: would they get a hit? They did not have one

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Speaker 8: through seven innings against the Mariners, Brian Wooge as Chisholm

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Speaker 8: broke up the no hitter, and then he scored on

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Speaker 8: a sack fight and the shutout. And it got interesting

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Speaker 8: when John Carlos Stanton added a pinch at to on

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Speaker 8: homer and even more so were than Austin Wells out

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Speaker 8: two ron game time single bottom of the ninth inning,

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Speaker 8: they went to the tenth the one.

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Speaker 5: High fly ball centerfield tagging wealty.

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Speaker 3: The catch is made, Here comes vaulty, here's the throw,

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Speaker 3: here's the play.

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Speaker 5: Peace say, Yankees win? What's set?

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Speaker 2: Clive by Choge.

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Speaker 8: Yankees win six five for no hit, No way, Yes

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Speaker 8: Network The call series sweep Yanks two games behind Toronto's.

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Speaker 8: They begin their finals series before the All Star Break

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Speaker 8: tennight at home against the Cubs the Metza in Kansas City,

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Speaker 8: Code I singa tonight comes off the injured list. The

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Speaker 8: Mets just got swept to the double letter in Baltimore

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Speaker 8: three to one and seven to three. They outrailed the

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Speaker 8: Phillies by a game and a half. The Red Sox,

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Speaker 8: with their seventh straight win on only four hits, would

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Speaker 8: beat Tampa Bay four to three. National has lost in

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Speaker 8: Saint Louis eight to one. The Wimbledon semifinals for the men,

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Speaker 8: American Taylor Fritz trying to upset the two time defending

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Speaker 8: champion Carlos Alcarez, and then it's the top Seedionix Center

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Speaker 8: against Novak Djokovic, who'll be playing his fifty second career

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Speaker 8: gran s Lam's semifinal. Max Lee Elia, who managed the

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Speaker 8: Cubs and Phillies, has died at eighty seven. It was

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Speaker 8: in nineteen eighty three, after fans got on his struggling

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Speaker 8: Cubs team, that Ilia delivered the greatest expletive phil Old

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Speaker 8: rant in history, twenty three f bombs. The Cubs only

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Speaker 8: played day games. Then an iliad noted, among many other things,

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Speaker 8: that eighty five percent of the population works in the

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Speaker 8: other fifteen GODA Cubs games Stash air on Bloomberg Sports, Karen.

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Speaker 1: Nathan Coast to Coast on Bloomberg Radio nationwide on Serious

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

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

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Speaker 5: Good morning, I'm Nathan Hager.

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Speaker 3: On a morning of trade threats rippling through the market

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Speaker 3: once again, President Trump says he could slap thirty five

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Speaker 3: percent tariffs on some Canadian goods, fifteen to twenty for

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Speaker 3: everyone else. And now Vietnam is saying it was caught

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Speaker 3: off guard with the twenty percent announcement that President Trump

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Speaker 3: made last week and is still working to get that

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Speaker 3: teriff right down. Here to work us through all the

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Speaker 3: latest trade headlines this morning, Bloomberg News Senior editor Bill Ferries, Bill,

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Speaker 3: where to start? I guess with the Canada announcement on

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Speaker 3: social media last night, how to take thirty five percent

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Speaker 3: tariff given that we are under a USMCA agreement still

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Speaker 3: good morning.

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Speaker 4: Good morning, Nathan. Yeah, the thirty five percent number from

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Speaker 4: President Trump, that's a big headline number, but we still

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Speaker 4: aren't sure what the reality.

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Speaker 5: Of that means.

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Speaker 4: I mean, it does seem like from our reporting that

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Speaker 4: a lot of the products or the products that are

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Speaker 4: covered under that US MCA trade agreement are not going

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Speaker 4: to face that thirty five percent tariff. And frankly, that's

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Speaker 4: the that's the majority of goods that Canada is exporting

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Speaker 4: to the US. There's also just the big ticket items

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Speaker 4: like energy, for instance, is facing a ten percent tariff

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Speaker 4: that's likely to not change under this regime. So there's

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Speaker 4: a big question about exactly how many products will really

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Speaker 4: face that thirty five percent, but it is you know,

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Speaker 4: it's not good news for Canada at all, and it's

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Speaker 4: not good news for all these other countries out there

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Speaker 4: that are still waiting to get letters or still you know,

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Speaker 4: hurriedly trying to negotiate deals.

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Speaker 3: Yeah, you have to wonder now what those negotiations are

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Speaker 3: going to look like when we've heard the report from

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Speaker 3: NBC News that the president's thinking about a fifteen to

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Speaker 3: twenty percent blanket tariff anyway, Yeah.

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Speaker 4: And fifteen to twenty percent, you know, in comparison to

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Speaker 4: some of the numbers we saw on April second Liberation Day,

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Speaker 4: that might seem like relatively low numbers, but when you

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Speaker 4: keep in mind that, you know, the average US tariff

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Speaker 4: for years up till January was about two percent. You know,

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Speaker 4: fifteen to twenty percent is a significant increase and would

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Speaker 4: have a big impact on trading partners and the US economy.

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Speaker 4: So it remains to be seen if that's really what's

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Speaker 4: going to happen. But we have seen the President rolling

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Speaker 4: out these sometimes more than a dozen at a time,

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Speaker 4: these letters just going out naming a tariff rate. Now

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Speaker 4: they have till August first to perhaps try to work

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Speaker 4: that down, but that's a lot of work that would

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Speaker 4: have to get done in just less than three weeks.

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Speaker 3: And along with the letters, we've seen the rollout so

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Speaker 3: far of just two framework agreements with the UK and Vietnam,

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Speaker 3: and now it seems like there are questions about whether

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Speaker 3: the Vietnam framework was really agreed to by both sides

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Speaker 3: the way they thought it was.

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Speaker 4: Yeah, this is an exclusive from Bloomberg, but you know,

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Speaker 4: people who are familiar with how the negotiations were going

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Speaker 4: say Vietnamese officials were surprised by Trump's public announcement about

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Speaker 4: the deal and the twenty percent tariff. They had been

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Speaker 4: looking for something lower than that. And it was interesting

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Speaker 4: to note after Trump came out and said twenty percent

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Speaker 4: for Vietnam, the Vietnamese government really never confirmed that agreement

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Speaker 4: at all, and they basically deflected a lot of the

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Speaker 4: questions that got raised about it. So now it turns

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Speaker 4: that maybe they thought they were getting something else, or

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Speaker 4: we're still in talks for a better deal. So it'll

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Speaker 4: be interesting to see how that plays out after August

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Speaker 4: first as well.

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Speaker 2: Well.

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Speaker 3: But what does this tell you about all the negotiations

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Speaker 3: that have been going on, not just with Vietnam but

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Speaker 3: with Canada as well. They've been working for literally months

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Speaker 3: now to try to come to some kind of middle

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Speaker 3: between the US and Canada, and now we've got this

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Speaker 3: thirty five percent announcement.

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Speaker 1: Yeah.

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Speaker 4: I mean, at one point we were promised ninety deals

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Speaker 4: in ninety days, and we're so far off the mark

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Speaker 4: when it comes to that at this point, as you mentioned,

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Speaker 4: just two framework deals. It does seem that the President

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Speaker 4: doesn't have a lot of patience for maybe the complexity

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Speaker 4: of these trade agreements. Even Treasury Secretary Scott Bessen was

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Speaker 4: actually asked at a forum this week what the how

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Speaker 4: we would compare his two big bosses in his life,

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Speaker 4: George Soros and Donald Trump, and he said, well, they're

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Speaker 4: both very impatient when it comes to a high stakes deal.

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Speaker 4: I think we're seeing how that plays out with the

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