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Speaker 1: News when you want it with Bloomberg News Now, I'm

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Speaker 1: Doug Prisner. The equity market celebrated a truce in the

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Speaker 1: US China trade war today, b S and P five

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Speaker 1: hundred jumping three point three percent, and the Nasdaq one

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Speaker 1: hundred pushed back into a bull market.

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Speaker 2: Now.

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Speaker 1: These gains came after the US and China said they

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Speaker 1: will temporarily lower tariffs on each other's products, and they've

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Speaker 1: allotted three months to work toward a broader trade agreement.

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Speaker 1: At the same time, President Trump said China has agreed

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Speaker 1: to remove non tariff barriers to US imports. Later, during

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Speaker 1: an executive order signing, the President said he may speak

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Speaker 1: with Chinese President Chi chin Ping before the end of

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Speaker 1: the week.

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Speaker 3: Both sides now agreed to reduce the tariffs imposed after

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Speaker 3: April second to ten percent for ninety days as negotiators

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Speaker 3: continue in the largest structural issues. And I want to

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Speaker 3: tell you that a couple of things. First of all,

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Speaker 3: that doesn't include the tariffs center already on that are

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Speaker 3: our tariffs, and it doesn't include tariffs soon cars, steel, aluminum,

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Speaker 3: things such as that.

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Speaker 1: Trump offered no specific details on which barriers the Chinese

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Speaker 1: had agreed to dismantle, and he acknowledged the discussions ahead

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Speaker 1: would only be more complicated. And Trump warned tariffs could

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Speaker 1: still increase if talks failed to secure an agreement within

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Speaker 1: those ninety days. Even so, he said the US would

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Speaker 1: not raise tariffs back to one hundred and forty five percent. Earlier,

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Speaker 1: speaking to Bloomberg, US Treasury Secretary Scott Besson said it's

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Speaker 1: implausible tariffs on Chinese goods would go below ten percent.

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Speaker 1: Here's Bessant.

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Speaker 4: The levels have come down to the Paul's level, and

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Speaker 4: what I would say is thirty four, which is their

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Speaker 4: assigned April second level would be a ceiling, which is

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Speaker 4: what I went out and told people on April second.

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Speaker 1: US Treasury Secretary Scott Besson, speaking earlier to Bloomberg, now,

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Speaker 1: Bessant and US Trade rep Jamison Greer led talks with

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Speaker 1: their Chinese counterparts in Geneva over the weekend. Meantime, the

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Speaker 1: US cover and said it has collected a record sixteen

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Speaker 1: billion dollars in customs duties revenue in April. That's a

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Speaker 1: one hundred and thirty percent increase from the same month

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Speaker 1: a year before, and according to Bloomberg Data, it's the

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Speaker 1: biggest monthly take for customs in at least a decade now.

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Speaker 1: The tariff news did spark a rally in the stock

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Speaker 1: market and in big cap tech in particular. Meantime, in

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Speaker 1: the treasury market, prices we're downforcing yields higher across the curve,

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Speaker 1: especially at the short end. Markets are now betting on

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Speaker 1: only two FED rate cuts this year. Kathy Jones is

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Speaker 1: chief fixed income strategist to Charles Schwab. She says, the

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Speaker 1: worst case scenario has been avoided for now.

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Speaker 5: The markets are so forward looking that they'll probably recalibrate

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Speaker 5: the expectations down the road. But yeah, what I'm really

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Speaker 5: concerned about is the CPI number. So we're expecting a

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Speaker 5: pretty modest number, and that's what the inputs tell us

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Speaker 5: right now. But the wild card is how much did

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Speaker 5: tariffs or anticipation of tariff's feed through in ways that

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Speaker 5: we haven't seen, that are below the surface, and they

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Speaker 5: suddenly show up in CPI.

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Speaker 1: Kathy Jones there from Charles Schwab. Republicans on the House

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Speaker 1: Tax Committee have released details of a multi trillion dollar

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Speaker 1: tax cut bill. It aims to cut taxes by more

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Speaker 1: than four trillion dollars and reduce federal spending by at

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Speaker 1: least one and a half trillion over a decade. It

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Speaker 1: also raises the state and local tax cap to thirty

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Speaker 1: thousand dollars for individuals. New York Congressman Mike Lawler says

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Speaker 1: he does not support the draft tax bill.

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Speaker 2: Salt was a pay for for other provisions of the

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Speaker 2: Tax Cuts and Jobs Act, and so to somehow try

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Speaker 2: to play both sides of this and say, well, it's

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Speaker 2: a pay for, but you have to pay for the

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Speaker 2: pay for, that's a joke. The fact is that putting

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Speaker 2: a cap in place serves as a pay for, so

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Speaker 2: we don't have to find a dime for it. What

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Speaker 2: we are putting in place with a cap helps pay

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Speaker 2: for other provisions within the tax bill.

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Speaker 1: That is New York Congressman Mike Lawler. There now, this

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Speaker 1: plan will take a big step forward when the House

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Speaker 1: Ways and Means Committee begins debates on Tuesday. We go

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Speaker 1: to the Middle East next. Tomas is freed American Israeli

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Speaker 1: hostage e Doon Alexander in a hastily announced move ahead

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Speaker 1: of President Trump's visit to the Middle East. His mother

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Speaker 1: l Alexander, spoke on the phone with her twenty one

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Speaker 1: year old son. It just really a photo of you.

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Speaker 1: You look unbelievable.

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Speaker 4: Wow, you look beautiful.

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Speaker 1: I love it so much. Meantime, Bloomberg's Nick Wadham says

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Speaker 1: the deal and others puts a question mark over the

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Speaker 1: relationship between President Trump and Israeli Prime Minister Benjamin Necnyahu.

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Speaker 6: US and the Houthis agreed to stop attacking each other.

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Speaker 6: Didn't say anything about the Houthis and Israel, and same

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Speaker 6: with Iran. I mean, yes, there had been indirect talks

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Speaker 6: between the US and Iran, but I think there's a

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Speaker 6: lot of concern in Israel that the Trump administration is

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Speaker 6: going to be willing to do a deal and not

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Speaker 6: consult Israel, and then that's going to leave them in

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Speaker 6: a potentially weaker play POSI.

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Speaker 1: That is Bloomberg's Nick wadhams in Washington.

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Speaker 4: Now.

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Speaker 1: President Trump arrives in Saudi Arabia on Tuesday before heading

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Speaker 1: to Cutter and the United Arab Emirates. He hasn't planned

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Speaker 1: a stop in Israel. And that is news when you

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Speaker 1: want it. With Bloomberg News. Now, I'm Doug Prisner, and

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Speaker 1: this is Bloomberg