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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Lisa Mattheo and I'm Karen Moscow. Here

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

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Speaker 3: Karen, we begin with the latest development in the global

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Speaker 3: trade war. President Trump's tariffs will remain in place for now.

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Speaker 3: That's after an appeals court temporarily paused a ruling that

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Speaker 3: had blocked them. Derek Wallbank is our senior editor for

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Speaker 3: US Economics and Government.

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Speaker 4: This is going to work through the US legal process

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Speaker 4: in the meantime, though it has kind of complicated the

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Speaker 4: idea that the Trump administration in this ninety day pause

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Speaker 4: window was going and trying to do deals with individual countries.

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Speaker 4: We really haven't seen a ton of deals come through

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Speaker 4: with that. We've had the UK, a lot of others

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Speaker 4: are said to be maybe close or near, but haven't

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Speaker 4: gotten over the line well.

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Speaker 3: Bloomberg's Derek Wallbank says that despite the temporary the possibility

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Speaker 3: does remain that the appeals court could ultimately back the

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Speaker 3: original ruling and block President Trump's tariff policy. However, White

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Speaker 3: House official stress President Trump has options to pursue similar

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Speaker 3: tariffs through other authorities if appeals ultimately fall short.

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Speaker 2: Meanwhile, Lisa, Treasury Secretary Scott Besson says trade talks which

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Speaker 2: China are currently at a bit of a standstill. Besson

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Speaker 2: says a call may be required between President Trump and

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Speaker 2: Chinese President Xi Jinping in order to reach a deal.

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Speaker 5: I would say that they are a bit stalled. I

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Speaker 5: believe that we will be having more talks with them

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Speaker 5: in the next few weeks, and I believe we may

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Speaker 5: at some point have a call between the President and

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Speaker 5: party chair she.

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Speaker 2: Treasury Secretary Scott Besson made the comments on Fox News.

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Speaker 2: President Trump had said he would speak to the Chinese

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Speaker 2: leader in the days after trade talks in mid May,

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Speaker 2: but that call has yet to materialize.

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Speaker 3: Careen tensions between the US and China may be growing

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Speaker 3: on another front. Reuter's is reporting President Trump is planning

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Speaker 3: to wrap up weapons sales to Taiwan to a level

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Speaker 3: exceeding the pay set during his first term. Reuter says

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Speaker 3: the new weapons packages are expected to focus on missiles, munitions,

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Speaker 3: and drones.

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Speaker 2: Lisa, the President met with fedhair J. Powell at the

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Speaker 2: White House for their first in person meeting since the inauguration.

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Speaker 2: The FED says the President invited Powell to discuss economic

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Speaker 2: developments for growth, employment, and inflation. White House Press Secretary

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Speaker 2: Caroline Levitt says Trump pushed Powell to lower interest rates.

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Speaker 6: The President did say that he believes the Fed chair

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Speaker 6: is making a mistake by not lowering interest rates, which

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Speaker 6: is putting us at an economic disadvantage to China in

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Speaker 6: other countries, and the President's been very vocal about that

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Speaker 6: both publicly and now I can reveal privately as well.

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Speaker 2: White House Press Secretary Caroline Levit says they did not

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Speaker 2: discuss whether Trump would seek to remove Powell from his role.

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Speaker 2: Powell's term as fedhare expires in May of next year.

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Speaker 3: Oh patident Trump will hold a news conference with Elon

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Speaker 3: Musk later today at the White House to mark Musk's

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Speaker 3: departure from DOGE. We get the latest from Bloomberg's John Tucker.

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Speaker 7: John and Lisa. The event gives an opportunity for the

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Speaker 7: President and his biggest campaign manufactor to dispel any notion

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Speaker 7: of an acrimonious divorce. In a post last night, President

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Speaker 7: Trump said this will be his last day, but not

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Speaker 7: really because he will always be with us helping all

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Speaker 7: the way. Elon is terrific In the past two weeks.

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Speaker 7: Musk has sworn off future political donations and also criticized

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Speaker 7: Trump's signature tax and spending cup proposal. The world's richest

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Speaker 7: man had already announced he was pulling back from the

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Speaker 7: so called Department of Government Efficiency in order to spend

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Speaker 7: more time running his various companies. His full exit comes

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Speaker 7: at a critical time for Tesla, which is set to

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Speaker 7: roll out full self driving cars and a robo taxi service.

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Speaker 7: La Mosca Vanda isn't the only thing on the President's schedule.

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Speaker 7: He's going to travel to US Steal today after announcing

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Speaker 7: a deal with Japan's Nippon Steal. On Tucker Bloomberg Radio.

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Speaker 2: All right, John, thank you about cash. President Trump and

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Speaker 2: Elon Musk comments live here on Bloomberg. Scheduled for one

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Speaker 2: thirty Wall Street time this afternoon on Bloomberg Radio, Bloomberg Television,

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Speaker 2: and the Bloomberg Podcast page on YouTube.

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Speaker 3: All right, we now turn to the latest developments in

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Speaker 3: the Middle East. Israel has accepted a USCAS fire proposal

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Speaker 3: for Gaza. It involves a sixty day pause in fighting

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Speaker 3: and restores you inlet a distribution to the enclave.

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Speaker 8: Now.

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Speaker 2: The proposal includes Hamas releasing ten live hostages and returning

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Speaker 2: the remains of eighteen who died in captivity, as well

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Speaker 2: as engaging in negotiations.

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Speaker 3: Toward a permanent end to the fighting. Hamas has criticized

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Speaker 3: the proposal as one sided and has not officially responded.

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Speaker 2: And to the markets now Lisa, where futures are lower

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Speaker 2: as we head into the last trading day of May,

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Speaker 2: Traders are trying to navigate growing uncertainty about tariffs that

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Speaker 2: are mired in legal battles. Rebecca Patterson, a former chief

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Speaker 2: investment strategist at Bridgewater Associates.

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Speaker 9: But the tariff level we settle at, I believe will

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Speaker 9: still be significantly higher than where we were at the

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Speaker 9: beginning of the year. To me, at the end of

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Speaker 9: the day, we're going to have volatility continuing, and I

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Speaker 9: think we still have a bias of risk that US

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Speaker 9: bond yields government bond yields are sticky or biased higher,

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Speaker 9: and that is going to be something that acts as

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Speaker 9: a cap on equity sentiment.

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Speaker 2: Former chief investment strategist at Bridgewater Associates, Rebecca Patterson also

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Speaker 2: says investors will be paying close attention to a key

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Speaker 2: economic report this morning. It's the personal Consumption Expenditures Price

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Speaker 2: Index excluding food and energy, the Fed's preferred gauge of

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Speaker 2: underlying inflation, and Bloomberg Surveillance will bring you the numbers

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Speaker 2: with context alive at eight thirty Wall Street time on

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Speaker 2: Bloomberg Radio and the Bloomberg Podcast page on YouTube.

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Speaker 3: All Right, checking some stocks on the move this morning.

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Speaker 3: Shares of GAP. They're down almost fifteen percent in early trading.

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Speaker 3: Revenue fell at it's Banana, Republic and Athletic chains. Gap

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Speaker 3: estimates an impact of two hundred and fifty million into

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Speaker 3: three hundred million dollars from tariffs if their level remains

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Speaker 3: at thirty percent for most goods from China and ten

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Speaker 3: percent for other countries.

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Speaker 2: Costco reported better than expected earnings in the third quarter. Lisa,

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Speaker 2: the nation's the largest club chain, is taking steps to

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Speaker 2: navigate tariffs, including rerooting goods, sourcing most more locally produced items,

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Speaker 2: and examining potential price changes on an item by item basis.

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Speaker 2: And shares are down about four tenths of a percent

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Speaker 2: this morning.

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Speaker 3: All Right, And we're seeing impending tariffs impacting the luxury

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Speaker 3: watch market watch enthusiasts. They snapped up Rolex and protect

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Speaker 3: the leap time pieces. In late April. The watch dealer

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Speaker 3: Subdial says volume was one hundred and sixty percent higher

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Speaker 3: than normal trading levels. The growth is particularly strong in

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Speaker 3: the US and the UK.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making news in New York and around the world,

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Speaker 2: and for that we're joined by Bloomberg's Michael bar Michael,

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Speaker 2: good morning, Good.

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Speaker 10: Morning, Karen. The man who'd led the NYPD through the

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Speaker 10: deadliest domestic attack in US history, has as New York

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Speaker 10: City Police Commissioner. On nine to eleven, Bernard Carrick was

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Speaker 10: front and center. He spoke the next day, on September twelfth,

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Speaker 10: two thousand and one.

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Speaker 8: We want to get in there. We want to rescue

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Speaker 8: the people that are alive and well in there, but

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Speaker 8: we've also we have to do it safely, and we've

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Speaker 8: had an enormous problem with the structural damage because the

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Speaker 8: buildings keep collapsing.

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Speaker 10: Kerrick later pleaded guilty to tax fraud. In two thousand

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Speaker 10: and nine, FBI director Cash Betel posted on social media

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Speaker 10: that Carrick's death came after a private battle with illness.

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Speaker 10: Bernard Carrick was sixty nine. Two NPD officers, including a

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Speaker 10: detective on Mayor Eric Adams security detail have been placed

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Speaker 10: on modifying duty after authorities discovered their connection to two

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Speaker 10: crypto entrepreneurs charged with kidnapping and torturing an Italian tourist.

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Speaker 10: According to people with knowledge of the internal investigation, the

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Speaker 10: officers were working off duty for John Wols and William

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Speaker 10: de Plessi. Investigators are looking into allegations that the detective

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Speaker 10: transported to USTs to the location where he was held

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Speaker 10: captive for seventeen days in an upscale townhouse in Manhattan.

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Speaker 10: Prosecutors alleged Boston Duplessi tortured the victim to extract the

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Speaker 10: password to his Bitcoin account. Harvard University President Alan Garber

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Speaker 10: emphasized the school's international reach at Thursday's commencement ceremony, amid

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Speaker 10: a battle with Trump administration officials over enrolling foreign students.

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Speaker 10: Garber's speech was met with a standing ovation.

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Speaker 11: Members of the class of twenty twenty five from down

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Speaker 11: the street, across the country, and around the world.

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

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Speaker 10: want it with Bloomberg News. Now, I'm Michael Barrn. This

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Speaker 10: is Bloomberg.

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Speaker 2: Karen, all right, Michael barr Thank you time now for

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Speaker 2: the Bloomberg Sports Update. Here's John stash Hour. John, good morning.

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Speaker 1: Do you want to here? In It's next season that

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Speaker 1: saw them win fifty one games advance further in the

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Speaker 1: playoffs if they hadn't twenty five years, No Nick player

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Speaker 1: or a fan wanted it to end on the Guarden floor,

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Speaker 1: where they have struggled in the playoffs. As Game five

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Speaker 1: wound down, Nick victory was secure.

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Speaker 9: Pace has had their.

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Speaker 10: Chases within ten, the third, within twelve of the fourth,

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Speaker 10: New York.

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Speaker 9: Responding on runs each time. And the New York Knicks

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Speaker 9: have looked delimination.

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Speaker 1: In the eye and they are alive and kicking. And

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Speaker 1: now the series to game six in Indy, with the

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Speaker 1: Pacer lead cut three games to two on TNT, Knicks

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Speaker 1: never trailed, built up a twenty two point lead third quarter,

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Speaker 1: and Pacers never got it down to single digits. Next

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Speaker 1: one one to eleven ninety four. In the Battle of

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Speaker 1: the All Star point guards, Jalen Brunson this time dominated

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Speaker 1: Tymes Halliburton. Brunson scored thirty two points. That's his twenty

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Speaker 1: first career playoff game at least thirty. Haliburton went from

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Speaker 1: thirty two points In that Pacers Game four win down

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Speaker 1: to eight, he went from a triple double to a

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Speaker 1: triple single, six assists, two rebounds. Still a long way

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Speaker 1: to go for the Knicks to become the fourteenth team

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Speaker 1: in NBA history to win a series after trillion three

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Speaker 1: to one, but they live to play Game six tomorrow

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Speaker 1: for the sixth time in Stanley Cup playoff history, the

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Speaker 1: same two teams we'll meet in consecutive finals. Florida beat

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Speaker 1: Edmonton a year ago in a Game seven. They'll start

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Speaker 1: this series next Wednesday in Edmonton. The Oilers wrapped up

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Speaker 1: the West with a six to three win at Dallas,

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Speaker 1: winning the series for to one. The marquee series of

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Speaker 1: the baseball season starts tonight in La Yankees and Dodgers

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Speaker 1: Aaron Judge, Shohei Otani a World Series rematch, and the

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Speaker 1: Yanks come in red hot five straight wins, nine to

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Speaker 1: the last ten, sixteen to the last twenty, and they'll

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Speaker 1: have Max Freed on the mount tonight. He's seven to zero.

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Speaker 1: His ERA is one point twenty nine. Mets Tonight host

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Speaker 1: the Rockies, who are nine to forty seven, three and

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Speaker 1: twenty five on the row. They've been outscored by one

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Speaker 1: hundred and seventy five runs the Nationals with a six

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Speaker 1: run ten to eight to win nine three. At Seattle,

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Speaker 1: Phillies and Braves split a doubleheader of the Phillies two

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Speaker 1: games ahead of the Mets. Frt Jopins second round victories

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Speaker 1: for Novak Djokovic going for his twenty fifth career Grand Slam.

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Speaker 1: Also Top Seedyonick Center and Coco Golop. Third round begins today,

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Speaker 1: John Stashaware Bloomberg Sports count and then.

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Speaker 12: Lisa Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 12: and around the world on Bloomberg dot Com and the

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Speaker 12: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: It is five twelve on Wall Street. Now to the

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Speaker 3: latest in the Trump Administration's battle to keep control of

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Speaker 3: global terrorists. This is after a pair of court decisions

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Speaker 3: try and block it for more. We are joined by

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Speaker 3: Bloomberg News Senior editor Bill Ferries. Bill, thanks for joining us.

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Speaker 3: The headlines coming in fast and furious yesterday. Most recently, though,

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Speaker 3: the Federal Appeals Court has allowed the President's tariffs sustain

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Speaker 3: effect for now, so it's temporary. Comes after the Trump administration,

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Speaker 3: they threaten to go to the Supreme Court. So if

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Speaker 3: you could tell us what kind of signal is this

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Speaker 3: latest move and how long is this order going to last?

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Speaker 11: Yeah, it seems like day where we're reacting to something

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Speaker 11: completely different. And the White House right now really celebrating

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Speaker 11: this decision by the Appeals Court to temporarily halt that

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Speaker 11: decision by the US Trade Court. That Trade Court had

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Speaker 11: basically said most of President Trump's tariffs that he's enacted

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Speaker 11: since January were illegal and had to be taken care

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Speaker 11: of eliminated within ten days. This Appeals Court had just

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Speaker 11: basically put the brakes on that. They said, hold on,

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Speaker 11: we need more time to assess this. We will leave

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Speaker 11: things as they are now. The challenge here is no

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Speaker 11: one really knows what that Appeals court final decision will

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Speaker 11: be like. They could still rule against the White House

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Speaker 11: and against the Trump administration on these tariffs. The White

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Speaker 11: House has already said it would be willing to take

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Speaker 11: this all the way to the Supreme Court. I think

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Speaker 11: almost no matter what happens, this will be a Supreme

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Speaker 11: Court decision. The White House is really committed to this

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Speaker 11: tariff policy, and they say that even if they lose

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Speaker 11: at the Supreme Court, they have other tools at their

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Speaker 11: disposal to make sure their focus on tariffs continues.

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Speaker 3: And what are some of those tools, because we heard

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Speaker 3: White House Trade advisor Peter n'vauer. He told Bloomberg yesterday

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Speaker 3: that it doesn't change things. This court decisions and the

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Speaker 3: president has other options. What are these options?

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Speaker 11: Well, it's true there are other options. I mean some

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Speaker 11: of the Section three ZHO one tariffs that that the

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Speaker 11: President put in place in his first term against China,

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Speaker 11: those are still there. Those are still in place. The

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Speaker 11: challenge is the White House chose this path declaring a

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Speaker 11: national emergency to impose these tariffs because it was the

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Speaker 11: fastest and easiest way to get their policies in place.

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Speaker 11: If that's not the tool they have, there are other

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Speaker 11: legislative options, but the challenge is they take more time,

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Speaker 11: they may not be permanent. They're also going to be

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Speaker 11: subject to legal cases. So declaring a national emergency and

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Speaker 11: putting in a ten percent tariff is something the President

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Speaker 11: felt like he could do right away. If you're using

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Speaker 11: some of these other options, it might take up to

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Speaker 11: two hundred and seventy days for an investigation to take place.

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Speaker 11: You might only be able to have them in place

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Speaker 11: for five months, so they're much much more restrictive. I

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Speaker 11: think the White House is hoping to avoid that option.

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Speaker 3: So all these options, and you mentioned the Supreme Court

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Speaker 3: too and everything, how far does the president's power stretch?

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Speaker 11: Well, the big question here is, you know, and the

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Speaker 11: issue the Trade Court raised was listen, you're saying there's

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Speaker 11: a national emergency because of the arrival of fentanyl within

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Speaker 11: the US, and you're saying there's a national emergency because

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Speaker 11: of the US trade deficits. The court ruled those may

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Speaker 11: be problems for the United States, but they aren't the

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Speaker 11: kind of national emergency that allows you to just slap

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Speaker 11: tariffs across the board on every country, even if the

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Speaker 11: issue you're talking about isn't really related to those countries.

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Speaker 11: That's the question before the courts. Now we're going to

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Speaker 11: see whether that's a power that the Supreme Court and

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Speaker 11: the Appeals Court believe the president should have.

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Speaker 3: All right, and does this take away any le wide

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Speaker 3: from his team as they continue with trade negotiations coming up.

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Speaker 11: Well, yeah, we're right in the middle of all those.

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Speaker 11: We're in the back half actually of those delayed reciprocal

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Speaker 11: tariff negotiations that's going to be continuing. We heard from

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Speaker 11: Scott Bessant over the last day that trade talks with

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Speaker 11: China seem to have stalled a little bit. It's hard

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Speaker 11: to know. If you're a foreign government and you're going

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Speaker 11: in you have to make the assumption that the White

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Speaker 11: House is going to keep pushing on tariffs one way

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Speaker 11: or the other. But it does look like they've lost

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Speaker 11: a little bit of their leverage. That may allow you

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Speaker 11: to have a little bit harder of a negotiating position

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Speaker 11: when you're dealing with the US.

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