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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 Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today, Karen.

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Speaker 2: The lift in futures comes on optimism on the trade front.

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Speaker 2: The European Union says it has agreed to accelerate negotiations

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Speaker 2: with the US to avoid a transatlantic trade war. The

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Speaker 2: move comes after President Trump extended his deadline to hit

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Speaker 2: the EU with fifty percent tariffs by more than a

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Speaker 2: month to July ninth, to allow for more negotiations. We

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Speaker 2: get more from Bloomberg's Oliver Crook.

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Speaker 4: It has been very difficult to get any idea of

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Speaker 4: where the kind of hard points of negotiation are. The

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Speaker 4: EU has put forward a number of proposals, probably all,

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Speaker 4: you know, somewhat too abstract for the Trump administration, which

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Speaker 4: is really just concerned with big dollar figures and sort

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Speaker 4: of big wins. And of course the difficulty the EU

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Speaker 4: has as it is an institution that is not, you know,

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Speaker 4: singularly best optimized to negotiate with a administration that can

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Speaker 4: move very very quickly and very mercurely because they're twenty

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Speaker 4: seven different member states.

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Speaker 2: Bloomberg is Oliver Crook says President Trump's fifty percent terriff

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Speaker 2: threat would hit three hundred and twenty one billion dollars

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Speaker 2: worth of goods trade between the US and the EU.

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Speaker 3: Nathan, let's get the latest now in the trade war,

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Speaker 3: which Shinea Bloomberg News has learned. Chinese President Shixin Ping's

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Speaker 3: government is considering a new version of its Made in

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Speaker 3: China twenty twenty five campaign to boost production of high

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Speaker 3: end technological goods. Policymakers are also looking to maintain this

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Speaker 3: share of manufacturing and gross domestic product at a stable

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Speaker 3: level over the medium to long term.

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Speaker 2: And Karen, President Trump is airing more frustration with Russian

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Speaker 2: President Vladimir Putin.

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Speaker 5: I'm not happy with what Putin's doing. He's killing a

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Speaker 5: lot of people, and I don't know what the hell

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Speaker 5: happened to Putin. I've known him a long time, always

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Speaker 5: gotten along with him, but he's sending rockets into cities

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Speaker 5: and killing people, and I don't like it at all.

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Speaker 2: Okay, The President says he is absolutely considering sanctions against Russia.

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Speaker 2: That's as it launched its largest drone barrage yet against

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Speaker 2: Ukraine over the weekend. The Kremlin is dismissing the president's

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Speaker 2: comments as an emotional reaction. Meantime, German Chancellor Friedrich Merritt

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Speaker 2: says Ukraine now has permission from its allies to strike

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Speaker 2: deep inside Russia. He says that includes weapons provided by

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Speaker 2: the US. Previously, the US had authorized use of its

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Speaker 2: attacker's missile system in Ukraine's border regions with Russia.

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Speaker 3: Nathan President Trump is ramping up a fight with Harvard

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Speaker 3: University even further, and a truth social post, the President

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Speaker 3: said he's thinking of diverting three billion dollars in grants

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Speaker 3: from the Ivy League institution to trade schools across the country.

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Speaker 3: The president wrote, quote, what a great investment that would

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Speaker 3: be for the USA. The Trump administration has already frozen

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Speaker 3: two point six billion dollars in federal research money for

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Speaker 3: Harvard and moved to block it from enrolling foreign students.

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Speaker 3: Harvard won a temporary court order against that ban. The

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Speaker 3: university has called all these moves to change its governance

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Speaker 3: and diversity practices and infringement on academic freedom.

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Speaker 2: Turn back to markets now, Karen bonds are rallying worldwide.

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Speaker 2: That's after Japan indicated that it's looking to stabilize its

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Speaker 2: debt market after weeks of rising yields. The move from

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Speaker 2: Japan suggests it is trying to stabilize a market where

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Speaker 2: relentless selling has pushed bond yields to record highs. A

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Speaker 2: sale of twenty year debt last week got the weakest

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Speaker 2: demanded more than a decade.

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Speaker 3: Nathan Shares of US Steel are up almost two percent

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Speaker 3: this morning. President Trump has reversed himself and appears to

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Speaker 3: have given his blessing to a deal with a Japanese

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Speaker 3: industrial heavyweight. I we get more with Bloomberg's John Tucker, John,

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Speaker 3: Good morning.

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Speaker 6: Yeah, Good morning, Karen. President Trump announced a planned partnership

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Speaker 6: between US Steel at Japan's Nipbon Steel, claiming it would

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Speaker 6: create at least seventy thousand jobs and add fourteen billion

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Speaker 6: dollars to the US economy. Well, steel workers like Glenn

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Speaker 6: Thomas reacted through the news.

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Speaker 7: I'm elated, overjoyed.

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Speaker 2: I'm happy for all the families that are going to

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Speaker 2: be able to keep sending their kids to college, paying

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Speaker 2: their mortgages, and feeding their families.

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Speaker 6: However, investors, executives, and diplomats are still unsure of what

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Speaker 6: exactly the President agreed to is unexpended announcement on Friday

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Speaker 6: stop short of explicitly endorsing Nippon Steals for Poll's fourteen

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Speaker 6: point one billion dollar cash takeover of US Steal, instead

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Speaker 6: asserting that the company would remain in America, as followed

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Speaker 6: seventeen months of negotiations, and after a twenty one percent

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Speaker 6: jump on Friday again, US Steal shares this morning are

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Speaker 6: up one point seven percent in New York Ime John Tucker,

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Speaker 6: Bloomberg Radio.

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Speaker 2: Okay, John, thank you know. One of the biggest events

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Speaker 2: this week comes tomorrow when Nvidia reports its quarterly results.

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Speaker 2: The chip making giant is seen as a bellweather for

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Speaker 2: so called growth stocks, and the sustainability of the artificial

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Speaker 2: intelligence boom. Its outlook will be crucial given macro risks

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Speaker 2: and tariff uncertainty. We get more from Bloomberg Intelligence Global

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Speaker 2: head of Tech Research Mandieve saying.

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Speaker 8: Overall, look, the market is still undersupplied and Nvidia chips

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Speaker 8: are still the most performant when it comes to accelerators

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Speaker 8: that you need for AI. So from that perspective, I

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Speaker 8: mean Nvidia still has that mode when it comes to

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Speaker 8: the AI accelerator market.

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Speaker 2: And you've seen Bloomberg Intelligence notes and video shares have

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Speaker 2: surged thirty nine percent since they had a fifty two

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Speaker 2: week low on April fourth. This morning, they're up nearly

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Speaker 2: three percent.

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Speaker 3: We turn to the economy now. Nathan and ahead of

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Speaker 3: the Minneapolis Fed says Rache should stay on hold until

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Speaker 3: more clarity emerges from the trade war. Neil Cashcarri smoke

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Speaker 3: with Bloomberg in Tokyo.

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Speaker 8: Is are going to be clear enough by September.

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Speaker 4: I'm just not sure right now.

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Speaker 8: Ultimately, we'll have to see what the data says, but

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Speaker 8: we'll also have to see how the negotiations are going.

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Speaker 3: Minneapolis VENT President Neil Kashkari is not a voting member

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Speaker 3: of the policy setting Federal Open Market Committee this year.

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Speaker 3: Stick with the Bloomberg for full cover to the Federal Reserve. Today,

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Speaker 3: we speak with Richmond FED President Tom Barkin. That's at

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Speaker 3: nine to thirty Wall Street Time on Bloomberg Radio, Bloomberg Television,

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Speaker 3: and the Bloomberg podcast page on YouTube.

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Speaker 2: Well care on the head of the European Central Bank,

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Speaker 2: Christine Leguard says the White House's erratic policies are an

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Speaker 2: opportunity for the euro. She suggests the US could be

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Speaker 2: undermining the dollar's role as the world's reserve currency. In

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Speaker 2: a speech this morning, the Guard said this could be

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Speaker 2: the moment the Euro goes global.

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Speaker 9: Moments of change can also be moments of opportunity. The

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Speaker 9: ongoing changes create the opening for a global euro moment,

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Speaker 9: and this is a prime opportunity for Europe to take

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Speaker 9: greater control of its own destiny. But let's not fool ourselves.

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Speaker 9: It is not a privilege that will be bestowed upon US.

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Speaker 2: ECB president Christine Leguard is calling for a closer single

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Speaker 2: market and more joint EU financing to make the block

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Speaker 2: more financially attractive.

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Speaker 3: And we stay in Europe, Nathan. HSBC has fired more

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Speaker 3: than two dozen of its top analysts. Bloomberg has learned

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Speaker 3: the cutbacks are mostly in Europe and include a global

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Speaker 3: head of fixed income research, Stephen Major. Time now for

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Speaker 3: a look at some of the other stories making news

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Speaker 3: in New York and around the world, and for that

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Speaker 3: we're joined by Bloomber's Michael Barr.

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Speaker 10: Michael, good morning, Good morning, Karen. British police say an

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Speaker 10: incident in which a mini van hit crowd celebrating Liverpool's

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Speaker 10: soccer victory is not being treated as terrorism. Merseyside Police

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Speaker 10: said a fifty three year old man believed to be

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Speaker 10: the driver, has been arrested and they are not looking

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Speaker 10: for anyone else. Authority say twenty seven people were taken

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Speaker 10: to the hospital, with two suffering serious injuries, and another

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Speaker 10: twenty were treated at the scene from minor injuries. Nick

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Speaker 10: Seerly is the Chief Fire Officer for Merseyside Fire and Rescue.

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Speaker 11: On arrival the Cruise of Mats with numerous injured people

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Speaker 11: of four persons trapped under a vehicle, our crews rapidly

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Speaker 11: lifted the vehicle with three adults and one child from

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Speaker 11: beneath and passed them to our Ambulance Service colleagues.

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Speaker 10: The crash happened at the end of the team's bus

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Speaker 10: parade through the city after winning the Premier League this season.

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Speaker 10: Former US Representative Charles Wrangle of New York has died.

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Speaker 10: The outspoken, gravelly voiced Harlem Democrats spent nearly five decades

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Speaker 10: on Capitol Hill and was a founding member of the

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Speaker 10: Congressional Black Caucus. Former New York Republican Congressman Peter King

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Speaker 10: says despite his prominence, Wrangle stuck close to his roots.

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Speaker 6: We were in different parties, but we were good friends.

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Speaker 7: He was loyal, he was a troop patriot, and I

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Speaker 7: was I was concerned he was missed in New York.

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Speaker 10: A veteran of the Korean War, he defeated legendary Harlem

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Speaker 10: politician Adam Clayton poll in nineteen seventy started his congressional career.

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Speaker 10: In twenty ten, the House censured Wrangle following an ethics scandal,

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Speaker 10: but he stayed in Congress until twenty seventeen. His family

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Speaker 10: said Wrangle died Monday at a New York hospital. Charles

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Speaker 10: Wrangle was ninety four. Louisiana's Attorney general says that three

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Speaker 10: more people who'd escape from a New Orleans jail earlier

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Speaker 10: this month have been captured, leaving two escapees at large.

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Speaker 10: Raphael Guineacci of the New Orleans Metropolitan Crime Commission is

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Speaker 10: worried about public safety for a couple of reasons.

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Speaker 2: The fact that two hundred officers have been working trying

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Speaker 2: to find this means that their other responsibilities have suffered.

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Speaker 10: Meanwhile, nine people face charges of assisting in the escape

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Speaker 10: or hindering the apprehension of the prisoners. 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 Michael Barr, and this is Bloomberg Kearn.

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Speaker 3: All right, Michael Barr, thank you. Time now for the

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Speaker 3: Bloomberg Sports update. Here's John Staneshauer.

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Speaker 11: John, Good morning, morning Karen.

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Speaker 12: The Yankees spending the week in Southern California, three games

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Speaker 12: with the Angels and then the weekend World Series rematch

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Speaker 12: with the Dodgers in Anaheim. The Angels off the game

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Speaker 12: of the home on It was one one fourth inning.

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Speaker 12: Yanks had the bases loaded in their short stop at

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Speaker 12: the plate.

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Speaker 2: He's in the center field of deep teller back, still back.

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Speaker 10: It's over his head. If one hop up against the wall.

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Speaker 5: Wishop scores, Judge scores, Pire comes Pellinger pill score.

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Speaker 2: That's up, bases clearing, double one, bumpy head. The Yankees lead.

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Speaker 12: Four to one, Yes Network the call. Yanks won five

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Speaker 12: to one. Other strong start for Ryan Yarborough. After the

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Speaker 12: home run, he allowed only one hit in six innings.

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Speaker 12: Yanks since May fifth, or fourteen and four, the Mets

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Speaker 12: at City Field are twenty and six. Shout out until

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Speaker 12: the eighth inning. They tied the game and then beat

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Speaker 12: the White Sox to the one on a Francisco indoors

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Speaker 12: sack fly bottom of the night. The Red Sox third

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Speaker 12: loss in a row three two at Milwaukee. NBA Playoffs.

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Speaker 12: Oklahoma City lost Game three at Minnesota by forty two,

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Speaker 12: but one game four by two one twenty six. Shay

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Speaker 12: gilges Alexander forty points. He was an assist Shy of

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Speaker 12: a triple double in the West Finals are three to

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Speaker 12: one thunder heading back to OKAC a huge Game four

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Speaker 12: tonight in the Indiana had the big comeback in the

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Speaker 12: series opener. The Nicks in Game three had their third

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Speaker 12: straight road wind where they were once down by twenty

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Speaker 12: There coach Tom Thibodeau asked about all the comebacks.

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Speaker 7: I know you guys like roll your eyes when they

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Speaker 7: say no lead is safe. But no lead is safe

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Speaker 7: because I think with the three point shot, people make

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Speaker 7: up ground quickly. Pace the game, make up ground quickly,

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Speaker 7: so you see comebacks all the time, and if you

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Speaker 7: let up just a little bits, that's what happened.

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Speaker 12: Nix in the playoffs six and one on the road.

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Speaker 12: Those six wins by total only sixteen points. Stanley got playoffs.

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Speaker 12: Carolina stayed alive. A three nothing went at Florida. Novak

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Speaker 12: Djokovic j Andcoco Goff among those with first round matches

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Speaker 12: this morning at the French Open. John Stashaware Bloomberg Sports

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Speaker 12: can't even.

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Speaker 1: Coast to coast on Bloomberg Radio nationwide on Serious 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: Good morning, I'm Nathan Hager. The European Union says it

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Speaker 2: helps to put trade talks with the US on a

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Speaker 2: fast track. That's after European Commission President Ursula Vonderline wanted

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Speaker 2: delay on President Trump's threat of fifty percent tariffs on

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Speaker 2: the block until July ninth.

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Speaker 5: She asked for an extension in the June first date,

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Speaker 5: and she said she wants to get down to serious negotiation.

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Speaker 2: That was the President announcing that delay to reporters over

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Speaker 2: the long holiday weekend. This morning, we're joined by Bloomberg's

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Speaker 2: Oliver Crook. So, Oliver, this is quite the turnaround from

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Speaker 2: when President Trump just last Friday was saying talks with

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Speaker 2: the EU were going nowhere to announce that threat. So

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Speaker 2: where do things stand this morning.

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Speaker 4: Well, listen, they may not have made a huge amount

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Speaker 4: of progress since then. Again, Ursula Vonderline got on the

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Speaker 4: phone after that announcement on Friday that the US was

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Speaker 4: going to target the EU with fifty percent tariffs that

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Speaker 4: would kick in theoretically next Sunday. That was pushed back

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Speaker 4: to July the ninth, the original deadline for the Liberation

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Speaker 4: Day pause on tariffs. And right now, what the European

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Speaker 4: Commission is trying to communicate is that since that conversation,

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Speaker 4: they're now on a quote unquote fast with negotiations with

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Speaker 4: the United States. We should say this is not a

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Speaker 4: sentiment that has been reflected by the United States. We

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Speaker 4: know that the Trump administration has been very frustrated with

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Speaker 4: the EU because they feel that their proposals are too abstract,

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Speaker 4: not really gibbringing them what they want to hear. On

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Speaker 4: the EU side of things, they feel that the Trump

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Speaker 4: administration is not making their desires very clear and there's

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Speaker 4: not a clear path forward. And this is what led

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Speaker 4: to basically the Trump administration turning up the pressure on

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Speaker 4: the situation to see if the Europeans can rustle something up.

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Speaker 4: What it seems like the state of play is now

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Speaker 4: is the main trade negotiator here in the EU. Sefkovich

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Speaker 4: will be taking the lead on industrial items such as steel, aluminum, cars,

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Speaker 4: pharmaceutical semiconductors, those sorts of things, and then that is

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Speaker 4: going to be split to parallel talks that will deal

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Speaker 4: with some other terriffts and then the non tariff barriers.

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Speaker 4: And this, Nathan, is where things get really complicated from

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Speaker 4: the EU standpoint, because remember the Commission is negotiating for

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Speaker 4: twenty seven different countries. The Trump administration doesn't just care

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Speaker 4: about tariff levels, they care about these non tariff barriers.

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Speaker 4: A lot of those issues go into sort of domestic

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Speaker 4: political law. Ways it's on tax, whether it's on regulation,

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Speaker 4: and that you cannot just do with the stroke of

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Speaker 4: a pen from Brussels.

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Speaker 2: Even without a stroke of a pen. All this raises

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Speaker 2: the question, Oliver, whether July ninth is enough time in

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Speaker 2: and of itself that's just a little bit more than

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Speaker 2: a month away.

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Speaker 4: Yeah, I think it is a very very big question.

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Speaker 4: And I think that the Trump administration's gamble on all

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Speaker 4: of this stuff is that it's going to hurt their

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Speaker 4: counterparts more than it's going to hurt them. And that'll

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Speaker 4: probably be true for the European Union because they run

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Speaker 4: a trade surplus of about two hundred billion dollars worth

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Speaker 4: of goods with the United States. That being said, you know,

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Speaker 4: according to the calculations that our economists do here at Bloomberg,

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Speaker 4: it could cost you know, in terms of US GDP

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Speaker 4: if you do hit the EU with fifty percent tariffs

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Speaker 4: about zero points six percentage points of growth, and it

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Speaker 4: would also be inflationary for the United States. So I

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Speaker 4: think it is in both interests to get this trade

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Speaker 4: deal through. This is a trillion dollars worth of trade

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Speaker 4: every year. This is the biggest trading relationships that exist

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Speaker 4: across the world. But that is also the reason that

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Speaker 4: both sides need to be happy with the outcome, because

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Speaker 4: there's so much money at stake here that both sides

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Speaker 4: need to be satisfied with what they get out of

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Speaker 4: this deal, and they're going to be living it with

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Speaker 4: it potentially for a very long time into the future.

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Speaker 2: So in our last minute, Oliver, what are we looking

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Speaker 2: for next, particularly when the US is focused as well

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Speaker 2: on trade negotiations with your with Asian nations as well

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Speaker 2: as you know most in the foreground China.

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Speaker 4: Yeah, I mean, something that I've been a little bit

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Speaker 4: sort of confused by is why we're not leaning more

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Speaker 4: on the European side on buying more weapons from the

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Speaker 4: United States. You have in Germany, for example, this massive

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Speaker 4: fiscals push. They basically they took away this debt break

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Speaker 4: which limited how much they could borrow. They now can

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Speaker 4: basically borrow, you know, infinitely to buy weapons and arms.

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Speaker 4: And there's really only one place you can buy that farm.

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Speaker 4: That could be one place you could make substantial progress

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Speaker 4: in terms of closing the trade and balance. LNG is

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Speaker 4: another place we'll be looking there for any sort of

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Speaker 4: concrete numbers. And of course we know that Trump administration

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Speaker 4: loves a big number. So if you were to say, hey, listen,

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Speaker 4: we the Europeans are willing to buy you know, a

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Speaker 4: trillion dollars worth of defense equipment and LNG over the

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Speaker 4: next ten twenty years, potentially that get you somewhere with

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Speaker 4: the Trump administration.

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