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

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Speaker 2: Good morning.

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Speaker 3: I'm Stephen Carroll and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen, The rise in futures comes in part on signs

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Speaker 2: the US will avoid a government shutdown. That's because Senate

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Speaker 2: Democratic Leader Chuck Schumer is opted not to block a

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Speaker 2: Republican spending bill. The decision was made despite a growing

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Speaker 2: number of Democrats wanting to use their limited leverage to

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Speaker 2: restrain Elon Musk's cost cutting efforts. Addressing the Senate, Schumer

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Speaker 2: explained why he decided to walk back the threat of

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Speaker 2: a shutdown.

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Speaker 4: A shutdown would give Donald Trump an Elon Musk carte

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Speaker 4: blanche to destroy vital government services at a significantly faster

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Speaker 4: rate than they can right now.

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Speaker 2: Republicans likely need seven other Democrats to join Schumer, who

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Speaker 2: wouldn't say if there were now enough votes within his

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Speaker 2: party to overcome a fellibuster.

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Speaker 3: Well, Stephen. The lift of the markets this morning comes

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Speaker 3: after the S and P five hundred slipped into correction territory.

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Speaker 3: The index is down ten percent from its all time high.

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Speaker 3: The tech heavy Nasdaq one hundred index is also in

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Speaker 3: a correction and the Dow Jones Industrial average is nine

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Speaker 3: point three percent below its last record in December. Lauren Goodwin,

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Speaker 3: the chief market strategist at New York Life, says tariff

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Speaker 3: worries are rattling Wall Street, but there is no.

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Speaker 5: Doubt that the volatility that we've seen in the market

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Speaker 5: over the last couple of weeks is about policy uncertainty.

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Speaker 5: It's not about economic fundamentals. And what's so interesting about

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Speaker 5: that is typically when we see drawdowns of this size,

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Speaker 5: it's the other way around. There's a concern implicit in

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Speaker 5: the economy about growth or employment, et cetera. This time

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Speaker 5: it's uncertainty causing the concerns about growth and employment.

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Speaker 3: New York Lives Lauren Goodwin believes markets will remain volatile

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Speaker 3: until some of the policy uncertainty clears.

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Speaker 2: Investors are the most bullish on tree treasuries relative to

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Speaker 2: stocks for at least three years. That's the findings of

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Speaker 2: the latest Bloomberg Markets Live Pulse survey. US bonds are

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Speaker 2: expected to deliver a better volatility adjusted return over the

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Speaker 2: next month than equities, according to a survey of more

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Speaker 2: than five hundred market participants conducted this week, and it's

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Speaker 2: not even close, with seventy seven percent backing treasuries. That's

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Speaker 2: the highest level ever in the survey data going back

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Speaker 2: to twenty twenty two.

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Speaker 3: Well Steven. Former Treasury Secretary Stephen Manuchen advised investors not

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Speaker 3: to overreact to the current sell off inequities and discounts

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Speaker 3: risks of a US recession. In an interview with Bloomberg,

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Speaker 3: Manuchin attributes the market correction to a natural correction in

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Speaker 3: the market fueled by massive tech spending.

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Speaker 6: We came in with the market being fully priced, so

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Speaker 6: I think a five to ten percent correction on the

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Speaker 6: s and per the NESTAC actually makes sense. The market's

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Speaker 6: been really fueled by massive amounts of tech spending, particularly

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Speaker 6: around AI. So some of this is a natural correction

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Speaker 6: in the market, and some of this is the market

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Speaker 6: worrying about tariffs and the impact on tariffs.

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Speaker 3: Former Treasury Secretary Stephen Manuchin also discounted risks of a

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Speaker 3: US recession. To hear the full conversation, get the Bloomberg

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Speaker 3: Talks podcast or watch it live on the Bloomberg podcast

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Speaker 3: page on YouTube.

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Speaker 2: Karen as for the global trade war. President Trump is

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Speaker 2: threatening a two hundred percent tariff on European wine, champagne,

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Speaker 2: and other alcoholic beverages. Trump says he'll impose the tariffs

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Speaker 2: if the European Union does not immediately remove its countermeasures

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Speaker 2: against his twenty five percent tariffs on steel and aluminum.

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Speaker 2: In an interview heard right here on Bloomberg Radio, Commerce

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Speaker 2: Secretary Harold Lutnik says the EU duties are disrespectful.

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Speaker 7: The President has made it crystal clear that he finds

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Speaker 7: this tit for tat really abusive and aggravating. Right, his

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Speaker 7: objective is steel and aluminum tariffs. Let him build his

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Speaker 7: steel and aluminum business in America, because that's import.

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Speaker 2: Commerce Secretary Harold Lutnik added he's thankful the UK and

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Speaker 2: Mexico refrained from engaging in tit for tat tariff hikes

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Speaker 2: and weren't trading partners that upset President Donald Trump opened

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Speaker 2: themselves to severe reaction.

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Speaker 3: Well, Stephen, the president of the European Central Bank, is

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Speaker 3: warning of severe global fallout from a trade war with

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Speaker 3: the US. Here's what Christine Laguard told the BBC.

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Speaker 8: If we were to go to a real trade war

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Speaker 8: where trade would be dumpened significantly, that would have severe consequences.

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Speaker 8: It would not be calls for concern. It would be

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Speaker 8: severe consequences as growth around the world and for prices

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Speaker 8: around the world, but particularly in the United States, but.

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Speaker 9: Also in Europe.

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Speaker 10: It would push Europe into recession.

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Speaker 9: Wouldn't they.

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Speaker 8: You know what it's doing at the moment, stirring European energy.

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Speaker 8: It's a big wake up call for Europe. Maybe this

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Speaker 8: is a European moment yet again.

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Speaker 3: And the Guard also told the BBC that Brussels had

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Speaker 3: no choice but to retaliate against the following its decision

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Speaker 3: to implement twenty five percent tariffs on global steel and

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Speaker 3: aluminium imports.

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Speaker 2: Well, Karen, if investors think the FAD will step in

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Speaker 2: if tariff's damage the economy, they may be wrong. That's

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Speaker 2: according to former New York Fed President William Dudley.

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Speaker 11: I think the problem is that clares are bad for

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Speaker 11: growth and bed for inflation, which puts the FED in

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Speaker 11: a buying Basically, they're missing by more on both sides

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Speaker 11: of their mandate. So I think in the near term

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Speaker 11: the Feds could basically be on hold waiting for more information.

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Speaker 2: Well Dudley, now Bloomberg opinion columnist, says the FED could

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Speaker 2: be in a bind if tariffs lead to slower growth

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Speaker 2: and higher inflation expectations. Read more in his latest column

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Speaker 2: at Bloomberg dot com slash opinion or opi and go

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Speaker 2: on the Bloomberg terminal.

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Speaker 3: Well, now, Stephen, we have the latest on the war

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Speaker 3: in Ukraine. Russian President Vladimir Putin says he wants to

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Speaker 3: discuss a proposed ceasefire in Ukraine with President Trump. However,

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Speaker 3: Putin said any truce should lead to a long term

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Speaker 3: resolution of the war. Trump says he hopes that Russia

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Speaker 3: agrees to the ceasefire deal.

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Speaker 12: We're talking about humanity, We're not talking about the money.

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Speaker 12: But then you add the money to it, and you know,

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Speaker 12: hundreds of billions of dollars is being spent and really wasted,

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Speaker 12: so unnecessarily it should have never happened.

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Speaker 3: Meanwhile, the US is titaned sanctions on Russia by restricting

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Speaker 3: payments for energy, even as it pursues peace negotiations with Putin.

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Speaker 3: Time now for a look at some of the other

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Speaker 3: stories making news in New York and around the world.

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Speaker 3: For that were joined by Bloomberg's Michael Barr or Michael

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Speaker 3: good morning.

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Speaker 10: Good morning. Karen, an American Airlines passenger Jed diverted to

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Speaker 10: Denver after reporting engine vibrations last evening. The plane landed safely,

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Speaker 10: but while taxing to the gate, an engine caught fire.

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Speaker 10: Passengers were evacuated using the aircraft's slides, including this woman.

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Speaker 11: It was just a bunch of panicky people around me,

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Speaker 11: and the gentleman right next to me was a fireman,

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Speaker 11: so he was trying to calm everybody down.

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Speaker 10: The FAA says an investigation is under. Columbia University says

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Speaker 10: it has expelled or suspended some students who took over

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Speaker 10: a campus building during pro Palestinian protests last spring, and

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Speaker 10: temporarily revoked the diploma diplomas of some students who have

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Speaker 10: since graduated. The university said in a campus wide email

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Speaker 10: that its judicial board brought a range of sanctions against

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Speaker 10: dozens of students who occupied Hamilton Hall based on its

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Speaker 10: evac evaluation of the severity of behaviors. Meanwhile, New York

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Speaker 10: City police arrested almost one hundred protesters after demonstrators from

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Speaker 10: a Jewish group filled the lobby of Trump Tower on

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Speaker 10: Fifth Avenue in Manhattan. They are protesting the ice arrest

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Speaker 10: of Columbia grad student Makmud Khalil. He organized a pro

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Speaker 10: Palestinian demonstration against Israel at Columbia last year. The demonstrators

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Speaker 10: from Jewish Voice for Peace or Red Shirts reading Jews

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Speaker 10: say stop arming Israel. In YPD Chief John Shell.

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Speaker 13: In two hours, what our secret service pond is in?

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Speaker 13: Trump Security had this situation cleared up.

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Speaker 14: With no issues.

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Speaker 10: Audio courtesy of News for There were tense exchanges when

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Speaker 10: Republican Congressman Chuck Edwards return to his North Carolina district

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Speaker 10: for a town hall with constituents. Many presidents say they

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Speaker 10: are not happy with Republicans and President Trump with how

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Speaker 10: they are running the country. We've got a lot to

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Speaker 10: be proud of in this country.

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Speaker 14: I happen to agree with a lot of the things

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Speaker 14: that's going.

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Speaker 9: On in Washington, DC right now.

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Speaker 10: I know many of you are not. Congressman Edwards face

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Speaker 10: questions from people including possible cuts to Social Security, federal layoffs,

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Speaker 10: and Elon Musk's Department of Government Efficiency. Global News twenty

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Speaker 10: four hours a day and whenever you want it with

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Speaker 10: Bloomberg News Now now, Michael Barn, this is Bloomberg.

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Speaker 3: Karen, all right, Michael Barn, thank you. That is time

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Speaker 3: down for the Bloombergy Sports update brought to you by

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Speaker 3: Try a State Outie. Here's John stash Hower Good Friday Morning.

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Speaker 13: John, Good Morning, Karen March. Madness on display at several

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Speaker 13: conference tournaments. At the ACC, Louisville avoided an upset by

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Speaker 13: scoring at the buzzer to beat Stanford by two. At

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Speaker 13: the SEC, Kentucky scored with a half second on the

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Speaker 13: clock for a one point win over Oklahoma that came

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Speaker 13: after Texas's double overtime upset of Texas A and M.

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Speaker 13: There was double overtime at the Big East. Creighton trailed

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Speaker 13: most of the night at one point by seventeen, but

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Speaker 13: got by DePaul Saint John's began the day easy, went

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Speaker 13: over Butler seventy eight to fifty seven Red Store and

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Speaker 13: bring their twenty eight and four record nineteen to zero

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Speaker 13: at home to a semifinal game tonight at the Garden

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Speaker 13: against Marquette. Six days ago in Milwaukee, the Johnny's one

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Speaker 13: on a basket at the buzzer of overtime. Speaking of

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Speaker 13: ot that's where the Rangers were in Minnesota.

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Speaker 9: Jack Jones boots upon shop, sit back, Tanaron picks it up.

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Speaker 9: Baneran leaves at per Miller back to Paneron Indeed drop

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Speaker 9: to back, Snider pick Saboon.

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Speaker 13: Back, Henry's car on MSJ Brayden Schneider wins at three

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Speaker 13: to two after earlier goals by Vincent Trocheck and Johnny

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Speaker 13: Brazinski and the Rangers and their four game losing streak.

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Speaker 13: They also got good news when Columbus lost, The Rangers

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Speaker 13: and Blue Jackets tied for the last playoff spot on

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Speaker 13: the east of the Rangers, who played one more game.

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Speaker 13: Devils beat Edmonton three to two. Bruins lost in Ottawa

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Speaker 13: six to three. The Nets lost in Chicago won sixteen

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Speaker 13: to one, ten three way time the lead. After the

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Speaker 13: opening round of the Players Championship. Americans Lucas Glover and

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Speaker 13: JJ Spahn both shot six understor did Camillo Viegas. Rory

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Speaker 13: mcklroy shot four under Scotty Scheffer's minus three. The Tampa

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Speaker 13: Bay Rays, who have long sought a new stadium, finally

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Speaker 13: had plans to build one for one point three billion,

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Speaker 13: but then came Hurricane Milton. It damaged the current home

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Speaker 13: Trafficcanna Field. It's the reason Ray's owner Stu Sternberg says

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Speaker 13: they couldn't come up with a seven hundred million dollar

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Speaker 13: payment that was due. The Rays have now scrapped plans

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Speaker 13: for the new stadium. Stashowards Bloomberg Sports Card and Stephen.

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Speaker 1: Coast to Coast on Bloomberg Radio, nationwide on Sirius Exam

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

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

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Speaker 2: Five twelve on Wall Street. Those features pointing higher as

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Speaker 2: Senate Democrats have pulled back on their threat of a

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Speaker 2: government shutdown, Chuck Schumer ultimately choosing not to block the

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Speaker 2: Republican written stop gap funding Baill. Let's discuss now at

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Speaker 2: Terry Haynes, founder of Pangaea Policy. Terry, great to talk

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Speaker 2: to you. Do you see the risk of a shutdown

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Speaker 2: completely gone?

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Speaker 14: Now, Stephen, good morning, and no, not completely. I'll get

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Speaker 14: they'll usually give you five percent for lightning striking, and

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Speaker 14: you know, and there's also there's always a possibility that

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Speaker 14: enough Democrats vote here to block temporarily. But you know,

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Speaker 14: Schumer's abdication on this is a very positive sign and

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Speaker 14: kudos to him. By the way, if you've got a

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Speaker 14: bit at hand, the best thing to do is fold,

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Speaker 14: and he certainly did.

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Speaker 2: But look, is there a question of leverage being lost here?

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Speaker 2: That was part of the reasoning that some Democrats did

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Speaker 2: want to get involved in blocking this, is there is

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Speaker 2: there something the Democrats have lost and making this call.

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Speaker 14: You know a lot of the Democratic interest groups will

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Speaker 14: say that they've lost things, but I'm not so sure

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Speaker 14: about that. You know, you can't win and revive your

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Speaker 14: party without without a strong message and without unity, and

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Speaker 14: right now the Democrats don't have either. So much smarter

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Speaker 14: political play for the Democratic leader to live to fight

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Speaker 14: another day here, I.

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Speaker 2: Think does this project the image of unity that Chuck

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Speaker 2: Schumer wanted though, if there's going to be those on

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Speaker 2: the sidelines that we're going to complain about this decision?

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Speaker 14: No, well, it doesn't really project a unity message at all.

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Speaker 14: It projects quite the opposite that there that they're split

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Speaker 14: on it. You have just kind of the thin end

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Speaker 14: of the wedge. Here is Senator Fetterman of Pennsylvania who

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Speaker 14: already was going to vote with with the with the

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Speaker 14: Republicans on this, and there's you know, easily half the

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Speaker 14: caucus who thought that there were it was it was

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Speaker 14: better to continue to be on the side of keeping

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Speaker 14: the government open even with the results that they didn't

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Speaker 14: particularly like.

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Speaker 2: So this needs giving futures a bit of optimism. I

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Speaker 2: had to today's trading session, but of course the trade

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Speaker 2: tension still playing in the background as well. What's your

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Speaker 2: view on the question of escalation from here? It seems

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Speaker 2: to be all going in one direction in what sense?

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Speaker 2: Well that we're talking about Trump adding, you know, threatening

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Speaker 2: two hundred percent tariffs on European wine and champagne. You

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Speaker 2: know is are we going to see further fight back

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Speaker 2: from the EU on this?

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Speaker 14: Well, I think you're going to see continued tit for tat. Sure,

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Speaker 14: there's two kinds of tariffs here. One is the but

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Speaker 14: I will think I was the geopolitical tariffs Canada and

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Speaker 14: Mexico negotiations underway for for better border security and drugs,

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Speaker 14: that sort of thing. The other is the tit for

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Speaker 14: tet reciprocals that are probably coming in April. But you know,

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Speaker 14: the ultimate goal here, and I know markets aren't convinced

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Speaker 14: by this, but the ultimate goal here both Bessant and

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Speaker 14: Lutnik talked about this yesterday, are frankly to have tariffs

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Speaker 14: go away. The idea is to remove tariff barriers, and

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Speaker 14: you know, of course that benefits the United States probably

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Speaker 14: more than it benefits of other countries. But that's where

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Speaker 14: the administration is going and that's what they seek to do.

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Speaker 2: Are the winners being created from this as well? I

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Speaker 2: mean kaya Kalas, the East top diplomat, telling Bloomberg that

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Speaker 2: China's laughing at these escalations of tensions between the US

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Speaker 2: and the EU.

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Speaker 14: I'm always interested, you know, and I have great respect

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Speaker 14: for miscalous and at the same time and know very

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Speaker 14: well the you know that she's looking right into the

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Speaker 14: teeth as a bear, so to speak, in Estonia. And

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Speaker 14: at the same time, I think there probably needs to

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Speaker 14: be more of an acknowledgment from the European Union about

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Speaker 14: the geopolitical strategy that's implicit in the economic strategy. The

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Speaker 14: big reason why Trump is going after this with such

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Speaker 14: alacrity really is that he's trying to turbo charge of

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Speaker 14: the United States economy, frankly, to build geopolitically the strongest

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Speaker 14: economy and frankly phil holes in the United States ability

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Speaker 14: to defend itself manufacturing and other things, they.

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