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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Good morning, I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today.

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Speaker 2: We begin with tensions rising potentially between the US and China.

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Speaker 2: With a red headline just crossing the Bloomberg terminal. President

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Speaker 2: Biden is imposing sweeping tariffs on China. Let's get the

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Speaker 2: details now from Bloomberg Steve Potisk in Washington.

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Speaker 3: In an election year move, the President is hiking tariffs

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Speaker 3: on a wide range of Chinese imports, including semiconductor chips, batteries,

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Speaker 3: solar sales, and critical minerals. The White House says the

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Speaker 3: changes are projected to effect around eighteen billion dollars in

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Speaker 3: current annual imports. The moves represent Biden's most comprehensive update

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Speaker 3: to the China tariffs first imposed by Donald Trump. It's

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Speaker 3: a recognition that a hawkish approach to trade with Beijing

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Speaker 3: remains popular with voters. None of Trump's tariffs will be reduced.

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Speaker 3: Biden will ratchet uprates on goods the US struggle to

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Speaker 3: import during the coronavirus pandemic, and for key industries like

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Speaker 3: chips and green energy that he sought to bolster since

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Speaker 3: he took office. Still, Biden must strike a careful balance.

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Speaker 3: Additional tariffs risk increasing prices for consumers already hurting from inflation.

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Speaker 3: It also could inspire the ire of China, which could

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Speaker 3: choose to retaliate in kind. In Washington, Steve Potis Bloomberg.

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Speaker 1: Radio, all Right, Steve, thank you well. Treasury Secretary Janet

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Speaker 1: Yellen says she hopes China will not retaliate any coming

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Speaker 1: trade restrictions. Speaking exclusively to Bloomberg, Yellen said, China is

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Speaker 1: really not playing by the rules.

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Speaker 4: We do think that the playing field should be fair,

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Speaker 4: and China engages in unfair practices like massive subsidies of

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Speaker 4: industries they've decided are critical, and those are cases where

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Speaker 4: we will like to protect ourselves.

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Speaker 1: Treasury Secretary j Yellen added that the US cannot allow

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Speaker 1: these emerging sectors to be wiped out by Chinese competition.

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Speaker 1: Get the full conversation on the Bloomberg Talks podcast feed.

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Speaker 2: And sticking with geopolitics, Karen. The Biden administrations giving an

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Speaker 2: in person show of support to Ukraine. Secretary of State

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Speaker 2: Anthony Blincoln is in Kiev. He's highlighting the battlefield gains

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Speaker 2: Ukraine could make with sixty one billion dollars in just

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Speaker 2: past US assistants. Polish President Andre's Judah says Russia cannot

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Speaker 2: be allowed to win in Ukraine.

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Speaker 5: If they managed to wan in Ukraine, if they managed

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Speaker 5: to accomplish their goals, they will keep on attacking. They

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Speaker 5: will attack other countries. Perhaps these could be the Baltic States.

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Speaker 5: Perhaps this could be Finland, Perhaps this could be Poland

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Speaker 5: on or perhaps these could be other countries which used

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Speaker 5: to be part of the Russian sphere of influence.

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Speaker 2: Polish President Dudah spoke through an interpreter with Bloomberg News

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Speaker 2: editor in chief John Mickelthwaite at the Katar Economic Forum

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Speaker 2: in Doha. Secretary of State bl Lincoln's visit to Ukraine

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Speaker 2: comes as Russia has mounted one of its biggest attacks

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Speaker 2: since the invasion more than two years ago, in the

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Speaker 2: northeastern region of Harkiev. Ukrainian President Vladimir Zelenski told Blincoln

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Speaker 2: Ukraine needs two air defense batteries to protect Kharkiv from

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Speaker 2: Russia's attacks.

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Speaker 1: Well, Nathan back here in the US, this star prosecution

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Speaker 1: witness and the hush money trial against Donald Trump returns

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Speaker 1: to the stand this morning and We get the details

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Speaker 1: from Bloomberg Law host Jun Grosso in New York.

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Speaker 6: The Michael Cohen that jurors saw on the stand was

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Speaker 6: subdued and unemotional, just answering the prosecutors' questions without any

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Speaker 6: hint of his ill feelings toward Trump. His testimony is

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Speaker 6: the most damaging against the former presidents so far, giving

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Speaker 6: a first hand account of Trump allegedly directing him to

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Speaker 6: falsify financial records to cover his hush money payment to

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Speaker 6: adult film star Stormy Daniels. The test will be whether

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Speaker 6: Cohen can be shaken on cross examination in New York

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Speaker 6: June Grosso of Bloomberg Radio June Thanks.

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Speaker 2: Turning to the economy, now Wall Street gets the first

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Speaker 2: of two key inflation reports this morning with the release

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Speaker 2: of the Producer Price indexs for April, and we get

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Speaker 2: a preview from Bloomberg's Michael McKee.

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Speaker 7: Inflation week kicks off with the Producer Price Index headline.

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Speaker 7: Wholesale prices are expected to rise a tenth of a

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Speaker 7: percentage point on the back of higher energy costs. Core PPI, however,

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Speaker 7: is forecast to fall back, resuming the downtrend in inflation

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Speaker 7: that was interrupted at the start of the year. Producer

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Speaker 7: prices don't translate directly into consumer price changes, but do

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Speaker 7: offer an overview of the inflation picture. The CPI is

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Speaker 7: released tomorrow. They also provide a picture of profit margins

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Speaker 7: in some industries, including retailers. Michael McKee Bloomberg.

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Speaker 1: Radio Mike, thank you well in company news sources say

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Speaker 1: Walmart is acting hundreds of corporate jobs and asking most

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Speaker 1: remote workers to return to offices. Companies around the world

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Speaker 1: are encouraging employees who's commute to worry shape by the

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Speaker 1: pandemic to return to offices. Walmart, the world's biggest retailer,

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Speaker 1: is also the largest private employer in the US and

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Speaker 1: all rates some four thousand, six hundred stores domestically.

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Speaker 2: In markets Karen Memestocks are once again in focus following

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Speaker 2: monster gains for Game Stop. Let's get the details from

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Speaker 2: Bloomberg's John Tucker, John and Nathan.

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Speaker 8: GameStop surged one hundred nineteen percent at one point. This

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Speaker 8: all started when the investor known as Roaring Kitty suggested

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Speaker 8: he was back after a three year absence with a

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Speaker 8: cryptic post on x. By the end of the day,

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Speaker 8: game Stops market cap increased by four billion, dollars. Trading

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Speaker 8: was halted for volatility nine times within the opening ninety

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Speaker 8: minutes of trading. That rallies spilled over into other meme

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Speaker 8: stocks AMC Entertainment that surged seventy eight percent.

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Speaker 9: Well.

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Speaker 8: This latest rally, though, is short of the two thousand

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Speaker 8: and one frenzy when game Stops surged two thousand percent.

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Speaker 8: This time, only twenty four percent of the stock is

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Speaker 8: sold short. Checking shares at GameStop at AMC this morning,

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Speaker 8: they're both up more than thirty seven percent. John Tucker, Bloomberg.

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Speaker 1: Radio, All right, John, thank you.

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Speaker 10: Well.

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Speaker 1: Banking is also very much in focus this more aring,

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Speaker 1: and we caught up with several CEOs at that Choose

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Speaker 1: France summit in Versailles. Bank of America as CEO Brian

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Speaker 1: Monahan says, US consumers, helped by wage growth, remained in

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Speaker 1: good shape even amid elevated interest rates.

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Speaker 8: The shows of the resilience and American consumer grat.

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Speaker 11: Structure may be higher, and we can talk about that,

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Speaker 11: but the reality is it's in decent shape. There's a

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Speaker 11: thousand things that can go wrong tomorrow, for right now,

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Speaker 11: everything's in pretty good shape.

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Speaker 1: In an interview with the Bloomberg John Faraoh Monahan says

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Speaker 1: consumer spending climb three to four percent in May from

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Speaker 1: a year ago.

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Speaker 2: And we also spoke with Goldman Sachs CEO David Solomon

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Speaker 2: in France, Karen. Last year, Solomon found himself under pressure

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Speaker 2: amid slumping profits at Goldman Fast Forward. The bank stock

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Speaker 2: recently hit record highs, thanks in part to a first

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Speaker 2: quarter jump in net income.

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Speaker 10: When times are good, you know, things feel good. When

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Speaker 10: times are tougher, things don't feel as good. But we

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Speaker 10: kind of take a long view execute against that strategy,

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Speaker 10: and we just know that if we have really really

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Speaker 10: smart people working together, working collaboratively, really driving for excells

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Speaker 10: to serve our clients, we're going to do just fine.

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Speaker 2: Goldman's David Solomon says, after a long quiet spell, the

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Speaker 2: market for initial public offerings has opened up.

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Speaker 1: Nathan, it wasn't just banking leaders that we caught up

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Speaker 1: with at the Choos France summit. We also heard from

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Speaker 1: a world leader. Francis President Emmanuel mccron said he'd be

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Speaker 1: open to the takeover of a major French bank by

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Speaker 1: a rival in the European Union to deepen financial integration

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Speaker 1: in the region. The Crown told the Bloomberg News editor

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Speaker 1: in chief John michels Way that the European Union needs

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Speaker 1: a fresh approach to business.

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Speaker 12: Dealing as Europeans means that you need consolidation as Europeans

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Speaker 12: your notes.

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Speaker 11: So it could be cross the board, emergency forest directions.

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Speaker 12: This is a totally new world and we do need

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Speaker 12: this new business model for the Europeans. More innovation, more investment,

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Speaker 12: single market and capital marketuion and a relevant trade policy.

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Speaker 1: And that's French President Emmanuel mccron. Here the full conversation

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Speaker 1: in all of our Newsmaker conversations from the Choos for

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Speaker 1: and Summit on the Bloomberg Talks podcast feed on the

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Speaker 1: Bloomberg terminal and at Bloomberg dot com. And as time

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Speaker 1: now we're look at some of the other stories making

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Speaker 1: news in New York and around the world, and for

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Speaker 1: that we're joined by Bloomberg's Michael Barr.

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Speaker 7: Michael, Good morning, Good.

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Speaker 9: Morning, Karen. Ceasefire talks have apparently stalled between Israel and

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Speaker 9: hamas it comes. United Nations confirms an AID worker was

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Speaker 9: killed and another injured after their vehicle was struck in

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Speaker 9: Gaza yesterday. Another AID worker was wounded a spokesman says

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Speaker 9: israel defense forces were not made aware of the vehicle

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Speaker 9: or its realm. Meanwhile, National Security Advisor Jake Sullivan pushed

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Speaker 9: back against criticism of Israel's actions inside Gaza. Sullivan says,

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Speaker 9: while they have some concerns on some of the IDF's conduct,

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Speaker 9: they don't believe it rises to the level of a

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Speaker 9: genocide like some claim.

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Speaker 13: We believe Israel canon must do more to ensure the

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Speaker 13: protect and well being of innocent civilians.

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Speaker 10: We do not believe what is happening in Gaza is

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Speaker 10: a genocide.

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Speaker 8: We have been firmly on record rejecting that.

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Speaker 9: Sullivan says the US still believes it would be a

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Speaker 9: mistake to launch a major military operation in RUFFA Jerry

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Speaker 9: selection continues today in the bribery trial of New Jersey

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Speaker 9: Senator Bob Menendez. The Democratic senator is charged with taking

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Speaker 9: bribes including gold bars, cash Anna Mercedes to help send

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Speaker 9: aid and weapons to for Egypt and Cutter and to

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Speaker 9: stop a federal case against a friend and businessman Menendez.

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Speaker 9: His wife, Nadine, is also charged, but will be tried

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Speaker 9: separately and later this summer. It has been almost two

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Speaker 9: years since a mass shooting took the lives of ten

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Speaker 9: people and injured three others at a New York State

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Speaker 9: tops market. New York Governor Kathy Okel went to Buffalo

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Speaker 9: to unveil the design for the five fourteen memorial honoring

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Speaker 9: the vic MS. Hokel talked about the powerful outreach of

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Speaker 9: the community immediately following the tragedy.

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Speaker 7: It didn't break us.

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Speaker 4: Instead, it revealed a strength that runs deep in the

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Speaker 4: veins of the city, the strength of a community that

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Speaker 4: finds together and refuses to be defined by acts of hate.

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Speaker 9: The victims, who were black, were killed by a white

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Speaker 9: supremacist in the attack. Maryland, Nebraska, and West Virginia hold

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Speaker 9: presidential primaries. Today, Global News twenty four hours a day

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Speaker 9: and whenever you wanted with Bloomberg News. Now, I'm Michael Barr,

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Speaker 9: and this is Bloomberg here.

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Speaker 1: All right, Michael Barr, thank you, nice time now for

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Speaker 1: the Bloomberg Sports update. But John stash Hour, John, good morning.

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Speaker 9: Good morning care.

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Speaker 14: The Rangers were us second chains to finish off with

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Speaker 14: Carolina Hurricanes at the guard. They our short handed goal

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Speaker 14: second period from Jacob Truba took that one, upping late

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Speaker 14: to the third one. They Cane scored twice in a

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Speaker 14: span of just over three minutes.

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Speaker 9: And they weren't done there. Miss Truber means you have

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Speaker 9: the way to meet us out in front market store.

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Speaker 7: Natchis to Martin Hook and it's.

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Speaker 8: An offensive explosion.

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Speaker 7: In the third period.

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Speaker 8: Carolina has a three to one lead.

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Speaker 2: Ninety nine nine.

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Speaker 14: The fan Hurricanes at an empty ninner one four to one,

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Speaker 14: and suddenly this series has gotten very interesting. Game six

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Speaker 14: done until Thursday in Raleigh, where the Canes are tough

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Speaker 14: to be. If there's a Game seven, it would be

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Speaker 14: on Saturday at MSG where tonight it's the Nixon Pacers.

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Speaker 14: Game five series tie to two Oklahoma City and Dallas

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Speaker 14: tied to two. Oka See beat the MAVs one hundred

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Speaker 14: to ninety six. Celtics now four to zero on the road.

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Speaker 14: They won in Cleveland one on nine, one oho two.

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Speaker 14: The Cavs had to play without the injury Donovan Mitchell.

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Speaker 14: Boston got to combine sixty points from Jason Tatum and

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Speaker 14: Jalen Brown.

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Speaker 9: They leave the series three to one.

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Speaker 14: It's opening night in the WNBA, and how much of

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Speaker 14: a difference does Caitlin Clark make The Connecticut Sun Tonight

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Speaker 14: hosting Clark and Indiana have sold out there near nine

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Speaker 14: thousand seed Arena. It's something they haven't done since their

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Speaker 14: first game ever in two thousand and three. Matt's spending

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Speaker 14: the week with the Phillies, who have baseball's best record.

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Speaker 14: Two James at City Field M two and Philly Mets

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Speaker 14: took a four to two lead to the ninth inning.

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Speaker 14: Phil's tied it off Edwin Diaz, and then one five

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Speaker 14: to four in ten. The full schedule comes out tomorrow,

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Speaker 14: but the NFL leaked out that opening night. September fifth

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Speaker 14: will be Baltimore at Kansas City, battle of the two

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Speaker 14: time winning MVP quarterbacks Lamar Jackson and Patrick Mahomes. Detroit's

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Speaker 14: QB Jared Goff just agreed to a four year contract extension.

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Speaker 14: He'll make fifty three million a year. Only the Bengals

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Speaker 14: Joe Burrow makes more. John Stansheward Bloomberg.

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Speaker 2: Sports Goldman Sachs CEO David Solomon spoke with Bloomberg's Jonathan

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Speaker 2: Farrow about the federal deficit, the economy, and opportunities around

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Speaker 2: the globe. Let's go to part of that conversation.

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Speaker 10: The level of debt in the United States, the level

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Speaker 10: of spending is something that we need a sharper focus

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Speaker 10: on and more dialogue around than what we've seen. We

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Speaker 10: obviously had a pandemic. We made a bunch of decisions,

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Speaker 10: you know, in that pandemic, but we're long out of

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Speaker 10: that pandemic, and the spending levels, you know, are continuing

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Speaker 10: at a pace that I think is our debt level

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Speaker 10: and creating issues for us down the road. We're obviously

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Speaker 10: in an election year, so I'm not you know, I

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Speaker 10: don't have my head in the sand. I don't think

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Speaker 10: you're going to see that get on a lot of

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Speaker 10: attention prior to the election. But I do think it's

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Speaker 10: something that requires focus. We need to deal with the

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Speaker 10: debt and the deficits, and you know, hopefully there'll be

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Speaker 10: a lot more discussion as we come through the election

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Speaker 10: and move into the next administration.

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Speaker 11: Well let's give it a bit of time now, if

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Speaker 11: we can. I think I often say that the United

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Speaker 11: States has the privilege of behaving recklessly. Sometimes that might

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Speaker 11: be the likes of the Europeans. Do not if you

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Speaker 11: sense there's been any kind of pushback from the treasury market,

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Speaker 11: from investors against the backdrope and this risk that we're

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Speaker 11: talking about currently.

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Speaker 10: The reserve currency is a great privilege, and you know,

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Speaker 10: I'm not going to sit here and say that I

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Speaker 10: see in the near term, you know, a threat to

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Speaker 10: that in any way, shape or form, but it's not

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Speaker 10: something that you can take for granted. And the United

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Speaker 10: States ability to spend without constraint is not unlimited. Ultimately,

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Speaker 10: the market will challenge that hasn't challenged it yet. Not

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Speaker 10: saying that's something that's coming soon, but it's certainly something

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Speaker 10: that we should be very cognitive of and.

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Speaker 9: Very protective of.

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Speaker 11: And do you think the experience of the UK company

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Speaker 11: years bank was maybe a case study for what we

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Speaker 11: could face in America.

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Speaker 10: You know that that was a disruption to the guilt

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Speaker 10: market and it's one of the things I think you

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Speaker 10: need to be concerned about to risk issue I've highlighted before.

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Speaker 10: You know, at the time the Bank of England had

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Speaker 10: to reserve, had to reverse its course and become very

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Speaker 10: accommodative to deal with that blip in the markets. We've

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Speaker 10: had disruptions of the treasury market before. We certainly had

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Speaker 10: a disruption in March twenty twenty to the degree that

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Speaker 10: we had a significant disruption in the treasury market sometime

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Speaker 10: in the future. We don't have a lot of capacity

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Speaker 10: through the banking system to intermediate that. It would require

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Speaker 10: very accommodative policy. If that came at a time where

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Speaker 10: that was not right for the Central Bank to be accommodative,

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Speaker 10: that would be a risk issue that would have to

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Speaker 10: be monitored.

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Speaker 11: We've had some big moves in the last three full months.

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Speaker 11: I can just think about a start of twenty twenty four.

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Speaker 11: We were looking ahead, so maybe seven rate cuts priced

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Speaker 11: into markets from the Federalserve went all the way down

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Speaker 11: to none I think Ian Hassius and team and down

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Speaker 11: to two July and November. Big swings and equity markets too, David,

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Speaker 11: can we talk a little bit about that. I think

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Speaker 11: we're seeing ten percent swings in trition dollar names post earnings.

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Speaker 11: Is that good for business? That kind of market environment,

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Speaker 11: It's not what you want to see.

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Speaker 10: You know, the market's the market, and you know, I

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Speaker 10: think there are a handful of things that are driving

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Speaker 10: these platforms to grow earnings very significantly and gain a

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Speaker 10: larger importance in the overall market capitalization. These hyper scalers,

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Speaker 10: as they're called, I think have enormous competitive advantages in

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Speaker 10: the world that we're operating in, and it's you know,

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Speaker 10: it's not been surprising, given some of the changes in

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Speaker 10: technology in the last twelve months, that their market caps

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Speaker 10: have accelerated, don't. I don't worry about that from a

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Speaker 10: market perspective. I think markets are relatively efficient. I do

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Speaker 10: worry that the structure of the equity markets, particularly in

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Speaker 10: the United States, but this is true all over the world,

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Speaker 10: are bringing fewer and fewer public companies, and that is concerning.

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Speaker 9: That is concerning.

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Speaker 10: There's obviously an abundance of capital available in private markets,

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Speaker 10: but I do think it's important that we have open, accommodative,

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Speaker 10: strong public markets. There's tremendous disclosure transparency in public markets.

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Speaker 10: I think that's good, yeah, for our capital deployment. And

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Speaker 10: you know, I am concerned that the breadth of the

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Speaker 10: public markets is getting a little bit more nar and

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Speaker 10: I think that's something for us all to watch and

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Speaker 10: think about.

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Speaker 2: That was Goldman Sachs CEO David Solomon speaking with Bloomberg's

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Speaker 2: Jonathan Farrow, and you can catch that entire interview on

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Speaker 2: the Bloomberg Talks podcast. Download all our high profile discussions

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Speaker 2: on Apple, Spotify, and everywhere you get your podcasts.

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Speaker 2: And I'm Karen Moscow.

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