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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg dba Q podcast, available every morning

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Speaker 2: on Apple, Spotify or whatever you listen. It's Wednesday, the

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Speaker 2: twenty third of April in London.

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Speaker 3: I'm Caroline Hepka and I'm Stephen Carroll. Coming up today.

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Speaker 3: Donald Trump says he never had plans to remove the

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Speaker 3: head of the Federal Reserve, but still wants your Own

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Speaker 3: Powell to cut interest rates.

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Speaker 2: The US president says China tariffs will come down substantially

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Speaker 2: as the IMF WARN's trade uncertainty raises the risk of

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Speaker 2: a global recession.

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Speaker 3: Plus shock therapy. Elon Musk says he will devote more

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Speaker 3: time to Tesla as the automaker suffers from slumping sales

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Speaker 3: and rising costs.

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Speaker 4: Let's start with a roundup of our top stories.

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Speaker 3: President Donald Trump says he never had any intention of

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Speaker 3: firing Federal Reserve charge your own Pale, after the prospect

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Speaker 3: triggered a sharp sell off in US assets. The apparent

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Speaker 3: walkback comes just days after the President posted on social

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Speaker 3: media that Powell's termination cannot come fast enough, and his

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Speaker 3: National Economic Council director told reporters that Trump was exploring

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Speaker 3: whether he had the authority to remove the FED chair,

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Speaker 3: but when asked directly on Tuesday if he wanted to

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Speaker 3: remove Powell, Trump had this to say.

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Speaker 5: Never did the press runs away with things now? I

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Speaker 5: have no intention of firing him. I would like to

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Speaker 5: see him be a little more active in terms of

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Speaker 5: his idea to lower interest rate. It's just a perfect

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Speaker 5: time to lower interest rate. If he doesn't is at

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Speaker 5: the end. No, it's not.

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Speaker 3: Trump's decision to reverse his previous comments on Powell eased

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Speaker 3: tensions in financial markets, with stocks and the dollar both gaining. Meanwhile,

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Speaker 3: Federal Reserve Governor Adrianna Kugler warned that Trump's tariff plans

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Speaker 3: could drive prices higher and have a more significant economic

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Speaker 3: impacts than previously expected.

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Speaker 6: The economy is facing heightened uncertainty, with side reads to

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Speaker 6: inflation and downside REGs to employment. This month, we learned

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Speaker 6: that the tariff increases are significantly larger than previously expected.

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Speaker 6: As a result, the economic effects of tariffs and the

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Speaker 6: associated uncertainty are also likely to be larger than we anticipated.

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Speaker 3: Avanna Kogler. We're speaking as a majority of Fed officials

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Speaker 3: continue to signal support for holding interest rates steady until

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Speaker 3: inflation risks begin to ease well.

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Speaker 2: The apparent easing of White House pressure on the Federal

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Speaker 2: Reserve comes as President Trump indicates a willingness to dial

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Speaker 2: down tariff tensions with China. Speaking to reporters, he said

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Speaker 2: he plans to be very nice to China in any

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Speaker 2: trade negotiations, and that tariffs could be reduced if the

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Speaker 2: two countries reach a deal.

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Speaker 5: One hundred and forty five percent is very high, and

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Speaker 5: it won't be that high. Not going to be that high.

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Speaker 5: It got up to there. We were talking about Fentonol

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Speaker 5: where you know, veryvarious elements built it up to one

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Speaker 5: hundred and forty five. No, it won't be anywhere near

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Speaker 5: that high. It'll come down substantially, but it won't be zero.

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Speaker 5: It used to be zero. We were just destroyed. China

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Speaker 5: was taking us for a ride, and it's not going

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Speaker 5: to happen.

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Speaker 2: Toump's comments echo earlier remarks from Treasury Secretary Scott best Sent,

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Speaker 2: who said that the standoff between the world's two largest

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Speaker 2: economies is unsustainable. Top Chinese officials, including the Central Bank

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Speaker 2: governor and finance minister, are in Washington for World Bank

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Speaker 2: and IMF meetings this week. It's understood that the gatherings

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Speaker 2: could offer a key opportunity for US and Chinese officials

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Speaker 2: to reconnect and revive trade discussions.

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Speaker 3: The International Monetary Fund has slashed its global growth forecast

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Speaker 3: and warrants that the trade war could spark even more

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Speaker 3: economic pain. The IMF now expects global GDP to grow

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Speaker 3: by two point eight percent versus its three point three

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Speaker 3: percent estimate previously. Will be the worst year for the

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Speaker 3: economy since COVID and the financial crash. It's the IMF's

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Speaker 3: managing director, Kastleina georgie Eva, told Bloomberg the risk of

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Speaker 3: a global recession is growing.

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Speaker 7: If we have this cloud of uncertainty coming lower and lower,

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Speaker 7: making it difficult for the business community and for households

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Speaker 7: to take decisions, we could have a self inflicted injury

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Speaker 7: that I guarantee you we would regret.

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Speaker 3: The IMF cut China and the US's growth outlooks more

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Speaker 3: than most countries. Britain also saw a bigger down grade

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Speaker 3: than its European peers, as the Fund judged the UK's

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Speaker 3: high bond yields and inflation pose a fiscal risk.

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Speaker 2: UK Chancellor of hel Reeve says that she will defend

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Speaker 2: British interests when she meets her US counterparts, got best

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Speaker 2: sent for the first time. The pair are set to

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Speaker 2: discuss a trade agreement and the new US tariffs on

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Speaker 2: the side lines of those IMF meetings.

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Speaker 4: Bloomberg's James Walcock has.

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Speaker 8: More London has long hoped its close relationship with the

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Speaker 8: US and trade deficit will give them a boost in talks.

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Speaker 8: We're starting to see how that's shaping up. The UK

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Speaker 8: is hoping for changes to car and drugs levies, which

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Speaker 8: will hit a quarter of all their exports to America,

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Speaker 8: and The Wall Street Journal report Washington wants changes to

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Speaker 8: UK food safety rules. That's the same demand that collapsed

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Speaker 8: trade talks in Trump's first term, But the journal adds

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Speaker 8: that the negotiating position may yet change and the final

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Speaker 8: call will come from the US President himself. In London,

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Speaker 8: James Wilcock The Mug Radio.

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Speaker 3: The Financal Times reports that Russian President Vlasimir Putin offered

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Speaker 3: to freeze the war in Ukraine along current front lines

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Speaker 3: during a recent meeting with Trump Envoy Steve Whitcalf. European

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Speaker 3: officials remain wary, warning it could be a tactic to

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Speaker 3: draw Trump into broader Russian demands. The report comes in US,

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Speaker 3: European and Ukrainian officials meet in London today to discuss

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Speaker 3: Ukraine's future with Trump's envoy Keith Kellarg representing the US.

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Speaker 3: Ukrainian President Vladimir Zelenski is also seeking a meeting with

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Speaker 3: Trump at the Vatican on Saturday during the Pope's funeral.

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Speaker 3: Trump has warned he may walk away if no deal

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Speaker 3: is reached.

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Speaker 2: Elil Musk is vowed to devote more time to Tesla

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Speaker 2: and step back from his stint leading the US Department

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Speaker 2: of Government Efficiency. The news follows calls from investors and

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Speaker 2: analysts for the CEO to refocus on the electric car company,

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Speaker 2: which is struggling with stomping sales and rising costs. Musk

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Speaker 2: says his workload with the Government Department will decrease starting in.

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Speaker 4: Next month May. My time allegation to do it will

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Speaker 4: drop significantly.

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Speaker 3: I'll have to continue doing it well, I think the

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Speaker 3: remainder of the President's term, just to make sure that

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Speaker 3: the waste and fraud that we start does not come

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Speaker 3: roaring back.

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Speaker 2: The CEO Elon Musk, speaking there to analyss yesterday. Now,

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Speaker 2: the stock rose on the news and extended New York

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Speaker 2: trading rallying from an initial lukewarm reaction to the carmaker's

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Speaker 2: first quarter results. Tessa reported adjusted earnings of twenty seven

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Speaker 2: cents per cheer for the first quarter, below the average

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Speaker 2: analyst estimate, while backing off its earlier prediction that sales

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Speaker 2: would return to growth this year.

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Speaker 3: Intel has expected to announce plans to cut over twenty

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Speaker 3: percent of its staff this week. Bloomberg understands the chip

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Speaker 3: maker is aiming to eliminate bureaucracy as part of new

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Speaker 3: CEO Lip Boutan's turnaround plan. The cutbacks follow on effort

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Speaker 3: last year to slash about fifteen thousand jobs. Round of

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Speaker 3: layoffs announced in August. Intel has struggled to keep up

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Speaker 3: with rivals, including Nvidio, after three straight years of sales declines.

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Speaker 2: Those are top stories for you this morning. Look at

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Speaker 2: the market is President Trump's softening on China tariffs and

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Speaker 2: Jerown Powell puts risk back on the front foot. The

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Speaker 2: S and P five hundred e many futures this morning

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Speaker 2: are up by one and a half percent. European equity

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Speaker 2: futures also one point seven percent. Now. The hang Saying

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Speaker 2: Index in Hong Kong jumping two point five percent, the

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Speaker 2: NIK two two five up by one point seven percent,

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Speaker 2: the US dollar jump the most in two weeks yesterday,

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Speaker 2: arising half of one percent, and we add to that overnight,

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Speaker 2: we're up another tenth of one percent this morning. Treasury's

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Speaker 2: rally thirty yield dropped eight basis points earlier this morning.

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Speaker 2: That's the biggest drop in yields in three weeks. And

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Speaker 2: gold has retraced. And we were talking yesterday about powering

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Speaker 2: through those record highs in the early session, but actually

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Speaker 2: this morning were down another one percent after a one

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Speaker 2: point three percent decline yesterday.

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Speaker 4: So those are the markets.

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Speaker 3: In a moment, we'll bring you more on what Donald

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Speaker 3: Trump has said that's given market some cause for relief.

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Speaker 3: Plus look at the details of what we learned from

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Speaker 3: Tesla's earnings. But if the rain in London this morning

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Speaker 3: is perhaps making you think of Sunnier Shores as a

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Speaker 3: great piece from It's a late installment of the CEO

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Speaker 3: Diet series by our food editor Kate Crater, which talks

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Speaker 3: to company by is about their favorite travel destinations. Some

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Speaker 3: great picks in there. The boss of the Swiss chocolat

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Speaker 3: Ledak talking about Maracus Bay and Trinidad as being his

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Speaker 3: favorite place to visit. He goes when he's visiting their

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Speaker 3: cocoa farms in Trinidad. Talks about swimming in the great

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Speaker 3: beaches there, but also the local bake and shark a

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Speaker 3: fried fish sandwich.

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Speaker 6: Yeah.

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Speaker 2: We often see Kate Crader in the corridors here at Bloomberg,

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Speaker 2: and she's always.

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Speaker 4: Got a fantastic tale of Yes, absolutely, but her piece

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Speaker 4: is always so lovely. Yeah.

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Speaker 2: And George Graham of the fashion platform Wolf and Badger

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Speaker 2: picking of course, where Elf where else but Venice?

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Speaker 1: Yeah?

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Speaker 3: And some tips to avoid the tourist crowds and venus

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Speaker 3: as well, very useful too. You'll find a link to

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Speaker 3: the story in the show notes for the Bloomberg day

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Speaker 3: Break Here podcast.

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Speaker 2: Now, Donald Trump has stepped back from previous comments targeting

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Speaker 2: jerown power, saying that he has no intention of firing

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Speaker 2: the FED chair on news desk editor DSIs Jones is

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Speaker 2: now for more.

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Speaker 4: Good Morning, Jill.

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Speaker 2: How much of a softening of the position is this

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Speaker 2: by President Trump?

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Speaker 9: Good morning, Well, it's hard to see what he's just

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Speaker 9: said about how he never had any intention of firing him,

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Speaker 9: and then not just look back to what Trump was

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Speaker 9: saying last week, when he was writing on his Truth

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Speaker 9: social platform that Powell's termination cannot come fast enough. He

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Speaker 9: was calling Powell a major loser. So it does feel

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Speaker 9: like certainly a pretty dramatic shift in tone from where

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Speaker 9: we stood at the end of last week. We also,

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Speaker 9: at that time had the director of the National Economic

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Speaker 9: Council for Trump, Kevin Hassett, tell reporters that Trump was

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Speaker 9: studying the question of whether he was able to fire Powell.

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Speaker 9: So regardless of whether something happened to kind of shift

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Speaker 9: Trump's mindset a little bit, it does seem like he's

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Speaker 9: certainly toned down some of that rhetoric, at least for

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Speaker 9: the time being on Powell news.

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Speaker 3: That's been welcomed by markets, who were also getting some

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Speaker 3: relief from President Trump's comments that he said he plans

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Speaker 3: to be very nice to China and trade talks. How

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Speaker 3: much is that going to help to de escalate the

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Speaker 3: trade war?

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Speaker 9: Well, the big question is what that actually means and

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Speaker 9: how that actually sort of, you know, renders itself as

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Speaker 9: a trade relationship between the United States and China. So

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Speaker 9: as of right now, Trump has placed one hundred and

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Speaker 9: forty five percent duties on Chinese shipments. You know, China

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Speaker 9: has you know, fairly substantial duties and response that it's

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Speaker 9: put on US goods being shipped, So you ultimately do

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Speaker 9: have these incredibly high tariffs right now, although I would

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Speaker 9: point out that there are certainly several exceumptions, including some

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Speaker 9: exceptions for computers popular consumer electronics, So you know, I mean,

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Speaker 9: at least from like sort of an industry by industry basis,

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Speaker 9: you already do have some attempts to kind of pair

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Speaker 9: back some of those really big headline tariffs. Now in

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Speaker 9: terms of what Trump's actually talking about when it comes

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Speaker 9: to being nice to China, I mean, he's suggested that

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Speaker 9: the tariff rates would come down substantially, but it wouldn't

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Speaker 9: be zero. I mean, at this point, I think it

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Speaker 9: really does matter how these talks actually go and what

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Speaker 9: kind of agreement these two countries can ultimately come to,

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Speaker 9: because as we've heard from Trump, I mean, he's really

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Speaker 9: really big on rhetoric. You know, we'll have to see

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Speaker 9: whether he actually sticks with that or how exactly these

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Speaker 9: negotiations go.

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Speaker 2: Yeah, indeed, so more uncertainty there. I Meanwhile, the IMF

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Speaker 2: warning of the economic impact of tariffs.

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Speaker 4: How bad does that look?

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Speaker 9: Well, I mean I think, you know, as we were

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Speaker 9: talking about in this program just a bit ago, you know,

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Speaker 9: this idea of really slashing that global growth forecast is

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Speaker 9: pretty significant, right, I mean, looking at global growth at

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Speaker 9: about two point eight percent for twenty twenty five, you know,

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Speaker 9: under the three point three or so percent that we

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Speaker 9: were essentially looking at. I mean, these are pretty substantial

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Speaker 9: cuts in terms of what we're actually trying to weigh

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Speaker 9: for when it comes to these types of tariffs. I mean,

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Speaker 9: the you know, and I think, just as Georgieva said

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Speaker 9: that if you're looking at losses in places like you know,

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Speaker 9: China and the United States, the world's too because economy

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Speaker 9: is becoming even larger in twenty twenty six and beyond.

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Speaker 9: I mean that ultimately would have some pretty strong reverberations

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Speaker 9: throughout the rest of the world. So again, I really

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Speaker 9: think the IMF, they're really warning, as many economists have,

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Speaker 9: that the impact from tariffs can be incredibly substantial if

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Speaker 9: we don't see some kind of significant shift over the

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Speaker 9: next you know, I mean, at this point less than

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Speaker 9: ninety days, as we see a lot of these countries

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Speaker 9: kind of come to the table and try to negotiate something.

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Speaker 3: Okay. Our newest desk editor, Jill Lisas, thank you very much.

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Speaker 3: Elon Musk has vowed to pull back from his work

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Speaker 3: and the Trump administration from next month to focus on Tesla.

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Speaker 3: That's after his electric carmaker reported earnings that came in

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Speaker 3: below what analysts had been expecting. Shares some Tesla rosen

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Speaker 3: after I was trading on Bluebrig's Charlie Wells is here

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Speaker 3: with more so the story from Tesla missing on key

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Speaker 3: metrics in the first quarter, but the share price reaction

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Speaker 3: Is this all about Musk?

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Speaker 1: It is? And you know the numbers tell that story.

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Speaker 1: Because for any other company missing on revenue by such

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Speaker 1: a wide margin, missing on earnings per share, I mean

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Speaker 1: the expectation had been forty three cents they brought in

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Speaker 1: twenty seven, or any other company, this would have spelled

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Speaker 1: doom in the stock market. But it was those comments

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Speaker 1: from us about peeling back work on Doge and refocusing

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Speaker 1: on Tesla that really helped the share price extend gains

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Speaker 1: in that late trading. And this is something the analysts

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Speaker 1: had been asking for, right They've been talking, you know,

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Speaker 1: kind of leading up to this earnings call about how

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Speaker 1: he needed to come back, he needed to kind of

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Speaker 1: step away from some of the political positions that he's

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Speaker 1: been taking that have really prompted backlash to the products.

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Speaker 2: Well, will Musk refocus on Tessa. Will that be enough

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Speaker 2: to turn the business around, because it's not as if

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Speaker 2: he said he was walking away from DOGE and she has,

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Speaker 2: as we know, many business interests.

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Speaker 1: Yeah. I mean, if you look back, not just to

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Speaker 1: some of the indicators on Tesla's performance during DOGE, but

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Speaker 1: even stepping back a couple years, you can see, say

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Speaker 1: in California, which is kind of traditionally maybe not so

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Speaker 1: much anymore, but traditionally Tesla's heartland, registrations of evs for

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Speaker 1: Tesla had been ticking down over the years, I think,

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Speaker 1: going back to maybe twenty twenty two to twenty twenty three,

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Speaker 1: slowly but surely, And I think that might speaks to

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Speaker 1: that might speak to our kind of degradation of the

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Speaker 1: Tesla brand, but also an increase in competition. Right, you

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Speaker 1: have mainstream car manufacturers, you have competitors, startups coming into

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Speaker 1: the EV space in a way that they just hadn't before.

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Speaker 1: So I think what Musk might have up his sleeve

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Speaker 1: as he refocuses on Tuesla. That's really difficult to say

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Speaker 1: right now, but he's got stiff competition.

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