WEBVTT - Trump Threatens Higher Canada Tariffs; Stocks & Bitcoin at All-Time Highs

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we begin with the latest developments on global trade.

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<v Speaker 3>President Trump is threatening a thirty five percent tariff on

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<v Speaker 3>some Canadian goods. That's an increase from the current twenty

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<v Speaker 3>five percent rate and would take effect August first. But

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<v Speaker 3>as Bloomberg's Bill Ferries reports, the increase would not affect

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<v Speaker 3>goods that are shipped under the terms of the current

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<v Speaker 3>US Mexico Canada agreement.

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<v Speaker 4>That might be a little misleading as a headline number.

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<v Speaker 4>I mean, our understanding of this is that it would

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<v Speaker 4>not apply to products or goods and services that are

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<v Speaker 4>already covered under this US MCA trade agreement with Mexico,

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<v Speaker 4>Canada and the US. So that's the majority of goods

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<v Speaker 4>traded between the US and Canada right there. So things

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<v Speaker 4>like energy as well are subject to a lower ten

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<v Speaker 4>percent tariff. In terms of thirty five percent, I think

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<v Speaker 4>we're going to need a lot more details from the

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<v Speaker 4>White House before that goes into place about which products,

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<v Speaker 4>But it doesn't look like that kind of broad swath

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<v Speaker 4>of tariffs across everything that comes south from Canada.

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<v Speaker 5>And Bloomberg spil Ferries reports.

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<v Speaker 3>President Trump's announcement on Canada came as he told NBC

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<v Speaker 3>News he's also eyeing blanket tariffs of fifteen to twenty

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<v Speaker 3>percent on most trading partners well Nathan.

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<v Speaker 2>Vietnam is seeking to lower its tariff rate by the US.

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<v Speaker 2>Sources say the country's leadership was caught off guard by

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<v Speaker 2>President Trump's announcement last week of a twenty percent tariff.

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<v Speaker 2>Vietnam is pushing for a tariff in the ten to

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<v Speaker 2>fifteen percent range.

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<v Speaker 3>And Karen Brazilian President Luis and Assio Lula de Silva

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<v Speaker 3>says his country can survive without trade with the US

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<v Speaker 3>and we'll look to other partners to replace America. In

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<v Speaker 3>a broadcast interview, Lula said Brazil's trade with the US

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<v Speaker 3>represents one point seven percent of its GDP and quoting here,

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

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<v Speaker 3>this week, President Trump threatened fifty percent tariffs against Brazilian imports.

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<v Speaker 2>Meanwhile, Nathan tariffs on China remain in the spotlight. This morning,

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<v Speaker 2>Secretary of State Margo Rubio met his Chinese Counterpartwang Yi

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<v Speaker 2>and Malaysia. It's the first in person session between the

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<v Speaker 2>CHIU and a possible prelude to a presidential summit. The

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<v Speaker 2>US and China agreed in May to temporarily slash their

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<v Speaker 2>high tariffs imposed on each other.

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<v Speaker 3>Now, when it comes to the impact tariffs will have

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<v Speaker 3>on inflation, Karen Federal Reserve Bank of Saint Louis President

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<v Speaker 3>Albertomusalem says it's too soon to tell.

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<v Speaker 5>He spoke at an event in Saint Louis yesterday.

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<v Speaker 6>The outlook for inflation that I have, in accordance with

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<v Speaker 6>what many private forecasters have, is for inflation to increase

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<v Speaker 6>going forward, mostly owing to tariffs, which may settle somewhere

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<v Speaker 6>between the low teens or the low twenties, depending entree Poulsy.

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<v Speaker 3>Saint Louis FED President Alberto Mussalm says the tariff impact

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<v Speaker 3>on inflation has been mild so far, but he expects

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<v Speaker 3>it to show up more in data starting in June, July, August,

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<v Speaker 3>or September.

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<v Speaker 2>Nathan President Trump says he plans to make a major

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<v Speaker 2>statement on Russia on Monday. In an interview with NBC News,

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<v Speaker 2>the President repeated as criticisms of Russian President Vladimir Putin

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<v Speaker 2>over his continued attacks in Ukraine. He says he expects

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<v Speaker 2>to send it to pass a tougher sanctions bill sponsored

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<v Speaker 2>by Republican Lindsey Grahm, though his option on whether to

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<v Speaker 2>use it. It's his option, though, on whether to use it,

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<v Speaker 2>and he says he's reached an agreement with NATO for

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<v Speaker 2>allies to buy US weapons that would then be sent

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<v Speaker 2>to Ukraine.

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<v Speaker 3>To the latest Karen on the flood disaster in Texas,

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<v Speaker 3>President Trump plans to visit Hill Country today, where at

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<v Speaker 3>least one hundred and twenty people were killed in last

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<v Speaker 3>weekend's flash floods and more than one hundred and seventy

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<v Speaker 3>are still missing. Fredericksburg, Texas Fire Marshall Reagan Rapki says

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<v Speaker 3>more than two thousand local, state, and federal workers are

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<v Speaker 3>still searching for victims in Kerr County.

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<v Speaker 7>And we have heavy e quest working and we're having

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<v Speaker 7>to dig through it by hand as well, just because

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<v Speaker 7>the machines can go through it.

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<v Speaker 8>We have to be very methodical about what we're doing.

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<v Speaker 3>It's Fredericksburg Fire Marshall Reagan Rabkey. President Trump's expected to

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<v Speaker 3>get an aerial tour of some of the hard hit

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<v Speaker 3>areas and meet with first responders and relatives of flood victims.

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<v Speaker 3>Texas's two Republican senators are expected to join the President

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<v Speaker 3>to board Air Force One.

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<v Speaker 2>Let's turn to the markets now, Nathan, where futures are

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<v Speaker 2>lower as we close out the trading week. Yesterday, the

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<v Speaker 2>S and P five hundred closed at a record as

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<v Speaker 2>at nears the sixty three hundred level. Veronica Willis is

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<v Speaker 2>global investment strategist at Wills Fargo Bank.

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<v Speaker 9>The market's seen a really impressive rally from those lows

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<v Speaker 9>earlier this year, maybe has gotten a little bit ahead

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

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<v Speaker 9>you know, earning season coming up, which could start to

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<v Speaker 9>see some of those impacts around that uncertainty around prices

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<v Speaker 9>and uncertainty around tariffs.

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<v Speaker 2>Wells Fargo Banks Veronica Willis. The S and P five

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<v Speaker 2>hundred is up almost seven percent so far this year.

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<v Speaker 3>Now, while stocks have been reaching new heights, Karen So

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<v Speaker 3>has Bitcoin. It's trading at another all time high this

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<v Speaker 3>morning at about one hundred and eighteen thousand dollars per token.

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

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<v Speaker 3>with more than a billion dollars worth of bets against

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<v Speaker 3>bitcoin being liquidated. Investors have also poured a net one

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<v Speaker 3>point two billion dollars into bitcoin ETFs Nathan.

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<v Speaker 2>In Europe, the UK economy shrank for eight second straight

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<v Speaker 2>month as companies and consumers struggle to bounce back from

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<v Speaker 2>the blow dealt by US tariffs and a raft of

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<v Speaker 2>tax increases grows. Domestic product declined one ten percent in May,

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<v Speaker 2>after contracting three tenths percent the previous month.

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<v Speaker 3>And staying in Europe Karen. Shares of BP are up

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<v Speaker 3>two and a half percent. The oil giant says it

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<v Speaker 3>expects to report rising production and a strong result from

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<v Speaker 3>its oil trading business for the second quarter.

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<v Speaker 2>Time. Now for look at some of the other stories

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<v Speaker 2>making news in New York and around the world, and

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<v Speaker 2>for that we're joined by Bloomberg's Michael Barr Michael Goodmore.

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<v Speaker 10>Good Morning, Karen. A federal judge in New Hampshire has

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<v Speaker 10>blocked President Trump to move forward with his ban on

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<v Speaker 10>birthright citizenship. The Supreme Court determined federal judges could not

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<v Speaker 10>issue sweeping nationwide injunctions against many of President Trump's policies,

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<v Speaker 10>but the plaintiffs worked around that ruling by filing a

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<v Speaker 10>class action lawsuit on behalf of all children born in

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<v Speaker 10>the US after February twentieth. Cody Wafsei is the deputy

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<v Speaker 10>director of the ACLU's Immigrants' Rights Project and the lead

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<v Speaker 10>attorney on the class action lawsuit.

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<v Speaker 7>So, no matter how much the Trump administration may dislike it,

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<v Speaker 7>they cannot break it, they cannot ignore it. It is

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<v Speaker 7>the right of every child born in this country.

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<v Speaker 10>Palestinian activist Mackmoud Khalil's role in Columbia campus protests against

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<v Speaker 10>Israel led to his detention for over three months in

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<v Speaker 10>immigration jail. Now he's seeking twenty million dollars in damages

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<v Speaker 10>from the Trump administration. His lawyers filed to claim a lledging,

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<v Speaker 10>false imprisonment, and malicious prosecution after his March arrest by

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<v Speaker 10>federal agents. Khalil, a legal US resident, said he suffered

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<v Speaker 10>severe anguish in jail. The government has accused Khalil of

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<v Speaker 10>leading protests aligned with a moss but has not provided

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<v Speaker 10>any evidence of a link. New York City Mayor Eric

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<v Speaker 10>Adams campaign says he has raised more than a million

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<v Speaker 10>dollars for his re election effort in a single night

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<v Speaker 10>at a fundraiser in Manhattan. According to a person familiar

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<v Speaker 10>with the matter, Wednesday's fundraiser was attended by several hundred

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<v Speaker 10>people and more than eight hundred donated. Adams said the

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<v Speaker 10>passion against Zoron Memdani will ultimately propel him to win

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<v Speaker 10>a second term. Heard on Bloomberg yesterday, Adams once again

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<v Speaker 10>said that former New York Governor Andrew Cuomo, who is

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<v Speaker 10>also running as an independent, should drop out of the race.

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<v Speaker 8>We both interacted, and I said you should step aside

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<v Speaker 8>for the good of this city.

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<v Speaker 5>We both agreed the city.

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<v Speaker 8>Were moving the wrong to deal direction under the primary winner,

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<v Speaker 8>and I think he should do the right thing.

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<v Speaker 10>Global News twenty four hours a day and whenever you

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<v Speaker 10>want it with Bloomberg News. Now him Michael barrn, this

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<v Speaker 10>is Bloomberg Herron.

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<v Speaker 2>All right, Michael barr thank you some time now for

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<v Speaker 2>the Bloomberry sports update. Here's John Stanshawer.

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<v Speaker 5>John, Good morning, Good morning, Karen.

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<v Speaker 8>Late in the Yankees game of Seattle at the stadium,

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<v Speaker 8>the question was not would the Yankees win, it was

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<v Speaker 8>would they get a hit? They did not have one

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<v Speaker 8>through seven innings against the Mariners, Brian Wooge as Chisholm

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<v Speaker 8>broke up the no hitter, and then he scored on

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<v Speaker 8>a sack fight and the shutout. And it got interesting

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<v Speaker 8>when John Carlos Stanton added a pinch at to on

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<v Speaker 8>homer and even more so were than Austin Wells out

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<v Speaker 8>two ron game time single bottom of the ninth inning,

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<v Speaker 8>they went to the tenth the one.

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<v Speaker 5>High fly ball centerfield tagging wealty.

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<v Speaker 3>The catch is made, Here comes vaulty, here's the throw,

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<v Speaker 3>here's the play.

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<v Speaker 5>Peace say, Yankees win? What's set?

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<v Speaker 2>Clive by Choge.

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<v Speaker 8>Yankees win six five for no hit, No way, Yes

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<v Speaker 8>Network The call series sweep Yanks two games behind Toronto's.

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<v Speaker 8>They begin their finals series before the All Star Break

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<v Speaker 8>tennight at home against the Cubs the Metza in Kansas City,

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<v Speaker 8>Code I singa tonight comes off the injured list. The

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<v Speaker 8>Mets just got swept to the double letter in Baltimore

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<v Speaker 8>three to one and seven to three. They outrailed the

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<v Speaker 8>Phillies by a game and a half. The Red Sox,

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<v Speaker 8>with their seventh straight win on only four hits, would

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<v Speaker 8>beat Tampa Bay four to three. National has lost in

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<v Speaker 8>Saint Louis eight to one. The Wimbledon semifinals for the men,

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<v Speaker 8>American Taylor Fritz trying to upset the two time defending

0:09:39.559 --> 0:09:42.520
<v Speaker 8>champion Carlos Alcarez, and then it's the top Seedionix Center

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<v Speaker 8>against Novak Djokovic, who'll be playing his fifty second career

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<v Speaker 8>gran s Lam's semifinal. Max Lee Elia, who managed the

0:09:50.600 --> 0:09:53.000
<v Speaker 8>Cubs and Phillies, has died at eighty seven. It was

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<v Speaker 8>in nineteen eighty three, after fans got on his struggling

0:09:56.200 --> 0:10:00.160
<v Speaker 8>Cubs team, that Ilia delivered the greatest expletive phil Old

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<v Speaker 8>rant in history, twenty three f bombs. The Cubs only

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<v Speaker 8>played day games. Then an iliad noted, among many other things,

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<v Speaker 8>that eighty five percent of the population works in the

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<v Speaker 8>other fifteen GODA Cubs games Stash air on Bloomberg Sports, Karen.

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<v Speaker 1>Nathan Coast to Coast on Bloomberg Radio nationwide on Serious

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<v Speaker 1>Exam and around the world on Bloomberg dot Com and

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<v Speaker 1>the Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 5>Good morning, I'm Nathan Hager.

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<v Speaker 3>On a morning of trade threats rippling through the market

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<v Speaker 3>once again, President Trump says he could slap thirty five

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<v Speaker 3>percent tariffs on some Canadian goods, fifteen to twenty for

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<v Speaker 3>everyone else. And now Vietnam is saying it was caught

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<v Speaker 3>off guard with the twenty percent announcement that President Trump

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<v Speaker 3>made last week and is still working to get that

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<v Speaker 3>teriff right down. Here to work us through all the

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<v Speaker 3>latest trade headlines this morning, Bloomberg News Senior editor Bill Ferries, Bill,

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<v Speaker 3>where to start? I guess with the Canada announcement on

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<v Speaker 3>social media last night, how to take thirty five percent

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<v Speaker 3>tariff given that we are under a USMCA agreement still

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<v Speaker 3>good morning.

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<v Speaker 4>Good morning, Nathan. Yeah, the thirty five percent number from

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<v Speaker 4>President Trump, that's a big headline number, but we still

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<v Speaker 4>aren't sure what the reality.

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<v Speaker 5>Of that means.

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<v Speaker 4>I mean, it does seem like from our reporting that

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<v Speaker 4>a lot of the products or the products that are

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<v Speaker 4>covered under that US MCA trade agreement are not going

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<v Speaker 4>to face that thirty five percent tariff. And frankly, that's

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<v Speaker 4>the that's the majority of goods that Canada is exporting

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<v Speaker 4>to the US. There's also just the big ticket items

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<v Speaker 4>like energy, for instance, is facing a ten percent tariff

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<v Speaker 4>that's likely to not change under this regime. So there's

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<v Speaker 4>a big question about exactly how many products will really

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<v Speaker 4>face that thirty five percent, but it is you know,

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<v Speaker 4>it's not good news for Canada at all, and it's

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<v Speaker 4>not good news for all these other countries out there

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<v Speaker 4>that are still waiting to get letters or still you know,

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<v Speaker 4>hurriedly trying to negotiate deals.

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<v Speaker 3>Yeah, you have to wonder now what those negotiations are

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<v Speaker 3>going to look like when we've heard the report from

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<v Speaker 3>NBC News that the president's thinking about a fifteen to

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<v Speaker 3>twenty percent blanket tariff anyway, Yeah.

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<v Speaker 4>And fifteen to twenty percent, you know, in comparison to

0:12:16.720 --> 0:12:20.040
<v Speaker 4>some of the numbers we saw on April second Liberation Day,

0:12:20.600 --> 0:12:24.200
<v Speaker 4>that might seem like relatively low numbers, but when you

0:12:24.280 --> 0:12:27.720
<v Speaker 4>keep in mind that, you know, the average US tariff

0:12:27.760 --> 0:12:32.200
<v Speaker 4>for years up till January was about two percent. You know,

0:12:32.480 --> 0:12:36.240
<v Speaker 4>fifteen to twenty percent is a significant increase and would

0:12:36.240 --> 0:12:39.720
<v Speaker 4>have a big impact on trading partners and the US economy.

0:12:39.800 --> 0:12:42.160
<v Speaker 4>So it remains to be seen if that's really what's

0:12:42.200 --> 0:12:45.120
<v Speaker 4>going to happen. But we have seen the President rolling

0:12:45.160 --> 0:12:47.520
<v Speaker 4>out these sometimes more than a dozen at a time,

0:12:47.600 --> 0:12:51.600
<v Speaker 4>these letters just going out naming a tariff rate. Now

0:12:51.600 --> 0:12:54.720
<v Speaker 4>they have till August first to perhaps try to work

0:12:54.760 --> 0:12:57.880
<v Speaker 4>that down, but that's a lot of work that would

0:12:57.920 --> 0:12:59.880
<v Speaker 4>have to get done in just less than three weeks.

0:13:00.080 --> 0:13:02.640
<v Speaker 3>And along with the letters, we've seen the rollout so

0:13:02.840 --> 0:13:07.240
<v Speaker 3>far of just two framework agreements with the UK and Vietnam,

0:13:07.360 --> 0:13:09.920
<v Speaker 3>and now it seems like there are questions about whether

0:13:09.960 --> 0:13:15.120
<v Speaker 3>the Vietnam framework was really agreed to by both sides

0:13:15.200 --> 0:13:16.240
<v Speaker 3>the way they thought it was.

0:13:17.160 --> 0:13:19.719
<v Speaker 4>Yeah, this is an exclusive from Bloomberg, but you know,

0:13:20.000 --> 0:13:23.000
<v Speaker 4>people who are familiar with how the negotiations were going

0:13:23.360 --> 0:13:27.920
<v Speaker 4>say Vietnamese officials were surprised by Trump's public announcement about

0:13:27.960 --> 0:13:31.240
<v Speaker 4>the deal and the twenty percent tariff. They had been

0:13:31.280 --> 0:13:35.520
<v Speaker 4>looking for something lower than that. And it was interesting

0:13:35.600 --> 0:13:38.200
<v Speaker 4>to note after Trump came out and said twenty percent

0:13:38.240 --> 0:13:42.400
<v Speaker 4>for Vietnam, the Vietnamese government really never confirmed that agreement

0:13:42.440 --> 0:13:45.400
<v Speaker 4>at all, and they basically deflected a lot of the

0:13:45.520 --> 0:13:48.640
<v Speaker 4>questions that got raised about it. So now it turns

0:13:48.679 --> 0:13:51.680
<v Speaker 4>that maybe they thought they were getting something else, or

0:13:51.679 --> 0:13:54.360
<v Speaker 4>we're still in talks for a better deal. So it'll

0:13:54.400 --> 0:13:56.959
<v Speaker 4>be interesting to see how that plays out after August

0:13:56.960 --> 0:13:57.680
<v Speaker 4>first as well.

0:13:57.800 --> 0:13:58.040
<v Speaker 2>Well.

0:13:58.080 --> 0:14:01.040
<v Speaker 3>But what does this tell you about all the negotiations

0:14:01.040 --> 0:14:03.000
<v Speaker 3>that have been going on, not just with Vietnam but

0:14:03.040 --> 0:14:06.640
<v Speaker 3>with Canada as well. They've been working for literally months

0:14:06.640 --> 0:14:09.800
<v Speaker 3>now to try to come to some kind of middle

0:14:09.960 --> 0:14:12.960
<v Speaker 3>between the US and Canada, and now we've got this

0:14:13.040 --> 0:14:14.600
<v Speaker 3>thirty five percent announcement.

0:14:15.520 --> 0:14:15.760
<v Speaker 1>Yeah.

0:14:15.840 --> 0:14:19.200
<v Speaker 4>I mean, at one point we were promised ninety deals

0:14:19.240 --> 0:14:21.960
<v Speaker 4>in ninety days, and we're so far off the mark

0:14:22.400 --> 0:14:24.560
<v Speaker 4>when it comes to that at this point, as you mentioned,

0:14:24.600 --> 0:14:27.600
<v Speaker 4>just two framework deals. It does seem that the President

0:14:27.720 --> 0:14:30.600
<v Speaker 4>doesn't have a lot of patience for maybe the complexity

0:14:30.680 --> 0:14:34.200
<v Speaker 4>of these trade agreements. Even Treasury Secretary Scott Bessen was

0:14:34.240 --> 0:14:38.520
<v Speaker 4>actually asked at a forum this week what the how

0:14:38.560 --> 0:14:42.200
<v Speaker 4>we would compare his two big bosses in his life,

0:14:42.480 --> 0:14:45.080
<v Speaker 4>George Soros and Donald Trump, and he said, well, they're

0:14:45.120 --> 0:14:48.240
<v Speaker 4>both very impatient when it comes to a high stakes deal.

0:14:48.520 --> 0:14:50.320
<v Speaker 4>I think we're seeing how that plays out with the

0:14:50.360 --> 0:14:51.440
<v Speaker 4>White House. Now.

0:14:51.480 --> 0:14:54.400
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<v Speaker 3>Ray