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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.

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Speaker 2: Karen battling back in the trade war. Bloomberg News has

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Speaker 2: learned the European Union is preparing to step up its

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Speaker 2: engagement with other countries hit by President Donald Trump's tariffs.

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Speaker 2: Let's go to London and get the very latest with

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Speaker 2: Bloomberg's James Wolcot. Good morning, James, Good morning, Nathan, and Karen.

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Speaker 4: The EU is reaching out to the likes of Calendar

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Speaker 4: and Japan to see if there might be a unified

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Speaker 4: global response to America's trade aggression. This reporting from Bloomberg

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Speaker 4: comes after the US President issued a new ultimatum of

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Speaker 4: a tariff rate of thirty percent over the weekend.

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Speaker 5: On the block.

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Speaker 4: Germany's Chancellor Friedrich Mertz warn that rate of thirty percent

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Speaker 4: would hit exporters in Europe's largest economy to the core.

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Speaker 4: Talks are still stuck on several issues, especially cars and

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Speaker 4: tariff rates and agriculture, but if levies do go up

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Speaker 4: in two weeks time, the EU is prepared to retaliate

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Speaker 4: on roughly eighty four billion dollars worth of US goods,

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Speaker 4: risking further trade escalation in London, James Wilcock Bloomberg Radio,

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Speaker 4: all right.

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Speaker 3: James, thank you well. President Trump will be heading to

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Speaker 3: the UK for his second state visit. King Charles will

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Speaker 3: host the President in September. Trump had warmly welcomed the

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Speaker 3: offer of another state visit to Britain when he was

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Speaker 3: handed the invitation by UK Prime Minister Keir Starmer in February.

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Speaker 3: The UK was the first country to sign a terror

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Speaker 3: production deal with the US in May.

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Speaker 2: Well before the President heads overseas, Karen, he may have

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Speaker 2: found a new pressure point for Federal Reserve Chairman Jerome Powell.

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Speaker 2: The President and his allies of it seizing on cost

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Speaker 2: overruns at the Central Bank's headquarters renovation as they continue

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Speaker 2: to hammer Powell for leaving interest rates unchanged. The President

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Speaker 2: made the point to reporters at Joint Bass Andrews outside

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Speaker 2: Washington last night, we should.

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Speaker 6: Have the lowest interest rate on Earth. How we don't.

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Speaker 6: He just refuses to do it. And yet he's spending

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Speaker 6: two and a half billion dollars rebuilding the bed.

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Speaker 2: President Trump says he thinks Powell should quit White House

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Speaker 2: National Economic Council Director Kevin Hassett discussed it as well

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Speaker 2: on ABC's This Week. The bottom line is that this

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Speaker 2: is the most expensive project in DC history, two and

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Speaker 2: a half billion dollars with a seven hundred billion dollar

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Speaker 2: cost overrun. White House Economic Advisor Kevin Hassett on ABC's

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Speaker 2: This Week heard Sundays on Bloomberg Radio Nathan.

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Speaker 3: For the second time this year, the world's most powerful

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Speaker 3: finance ministers gather in South Africa without the presidence of

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Speaker 3: US Treasury as Secretary Scott Besson will skip the Group

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Speaker 3: of twenty again this week, continuing a boycott of South

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Speaker 3: Africa by top US officials begun by Secretary of State

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Speaker 3: Marco Rubio.

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Speaker 2: He stayed away out.

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Speaker 3: Of scorn over his host theme for HG twenty Presidency

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Speaker 3: of Solidarity, equality and sustainability.

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Speaker 2: Turning now to the newest developments in the warren Ukraine, Karen,

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Speaker 2: President Trump says the US will send more Patriot air

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Speaker 2: defense batteries to Ukraine. Be spoke with reporters on his

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Speaker 2: way back to the White House.

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Speaker 6: Are you the number yet? But they're going to have

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Speaker 6: some because they do need protection. But the European Union

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Speaker 6: is paying for it. We're not paying any big parts,

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Speaker 6: but we will send it. It'll be business for us,

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Speaker 6: and we will send the patriots which they desperately need.

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Speaker 2: Ukraine had been receiving weapons from the US, but only

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Speaker 2: with money remaining from former President Joe Biden's time in office.

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Speaker 2: President Trump had previously refused to consider seeking additional funds,

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Speaker 2: arguing it would only harden Russian President Vladimir Putin's stance

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Speaker 2: and dim chances to end the fighting.

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Speaker 3: Nathan, former President Joe Biden, is pushing back. It went

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Speaker 3: of President Trump's harshest claims about his mental acuity while

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Speaker 3: he was in office. In an interview with The New

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Speaker 3: York Times, the former president said he made all the

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Speaker 3: clemency decisions that were recorded with an auto pen, and

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Speaker 3: that he had orally granted all pardons and commutations issued

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Speaker 3: at the end of his term. And he says President

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Speaker 3: Trump and Republicans are quote liars for claiming his aids

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Speaker 3: used an auto pen without his authorization.

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Speaker 2: Turning to the latest on the flood disaster in Texas, Karen,

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Speaker 2: the search for victim is expected to resume today along

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Speaker 2: the Guadalupe River, recovery efforts had to be put on

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Speaker 2: hold yesterday, with another round of heavy rains leading to

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Speaker 2: high water rescues Elsewhere. More than one hundred and sixty

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Speaker 2: people may still be missing in the July fourth floods

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Speaker 2: that left at least one hundred and thirty two dead. Meantime,

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Speaker 2: Homeland Security Secretary Christi Nome is pushing back at reports

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Speaker 2: that FEMA's response to the disaster was delayed.

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Speaker 7: So the fact that Democrats are politicizing this while people

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Speaker 7: are still looking for for their babies, they're still looking

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Speaker 7: for their family members, I think is absolutely despicable. And

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Speaker 7: the American people just I think need to know the

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Speaker 7: truth of what they're doing and how they're taking advantage

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Speaker 7: of the situation to help themselves politically.

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Speaker 2: Homeland Security Secretary Christi Nome appeared on Fox News Sunday

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Speaker 2: Heart Every Sunday.

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Speaker 3: On Bloomberg Radio, Nathan wall Street returns to work with

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Speaker 3: a focus this week on inflation and earning, so we

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Speaker 3: get a preview with Bloomberg Shirley Billett.

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Speaker 8: According to data compound by Bloomberg Intelligence, analysts are expecting

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Speaker 8: the slowest profit growth rate in two years. Emily Rowland

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Speaker 8: is co Chief investment Officer at Manualife John Hancock.

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Speaker 9: Analysts are penciling and five percent earnings growth for S

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Speaker 9: and P five hundred companies. That's come down a bit,

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Speaker 9: so the bar is lower. We're going from thirteen percent

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Speaker 9: earnings growth. Just awesome results in the first quarter.

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Speaker 8: Thanks will be front and center this week with reports

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Speaker 8: from JP Morgan, Chase, City Group, Wells Fargo, Morgan Stanley,

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Speaker 8: and Goldman Sachs. Also reporting this week, three M General Electric,

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Speaker 8: and Netflix in New York. Charlie Pellet Bloomberg Radio. Okay, Charlie,

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Speaker 8: thank you. Futures are lower as we begin the new

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Speaker 8: trading week, but Bitcoin is on the rise again. In fact,

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Speaker 8: the cryptocurrency is trading in a record right now, up

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Speaker 8: two point eight percent above one hundred and twenty two

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Speaker 8: four hundred dollars. Bitcoin is now up about thirty percent

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Speaker 8: since December.

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Speaker 3: Nathan, We're starting to see some of the impact of

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Speaker 3: the US trade war which China. China ended the first

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Speaker 3: half of the year with a record trade surplus of

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Speaker 3: about five hundred and eighty six billion dollars after exports

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Speaker 3: to the US began to stay X Sports rose year

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Speaker 3: on year by a higher than expected five point eight

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Speaker 3: percent in June, shipments to the US fell sixteen percent

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Speaker 3: from a year earlier, after slumping by over thirty four

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Speaker 3: percent in May.

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Speaker 2: And staying in Asia. Cairen the slump in Japan's long

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Speaker 2: term bonds as accelerating, pushing yields sharply higher in a

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Speaker 2: move that puts global debt markets on alert. While the

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Speaker 2: pressure in Japan is being heightened by a looming election

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Speaker 2: on July twentieth. Concerns over governments spending beyond their means

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Speaker 2: also applied to the UK, Europe and US.

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

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

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Speaker 3: For that, we're joined by Bloomberg's Michael Barr Michael, Good Morning.

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Speaker 5: Good Morning Karen. Two women were killed and two other

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Speaker 5: people were wounded in a shooting at a Lexington, Kentucky church,

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Speaker 5: in a rampage that began after a state trooper was

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Speaker 5: shot and wounded. Authority said the suspect was also killed. Sunday.

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Speaker 5: In a news conference, Lexington Police Chief Lawrence Weathers says

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Speaker 5: it began after the trooper pulled over a vehicle near

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Speaker 5: the airport. The trooper had pulled over a vehicle on

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Speaker 5: terminal drive after receiving a license play reader alert in

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Speaker 5: the area of a sales road.

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Speaker 8: The trooper was shot and the suspect fled.

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Speaker 5: Chief weather As The suspect then carjacked the vehicle and

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Speaker 5: fled to the church, where he began shooting at people there.

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Speaker 5: The suspect was later killed by Lexington police. NATO's Secretary

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Speaker 5: General Mark Ruda is set to meet President Donald Trump

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Speaker 5: this week. NATO said Ruda will be in Washington today

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Speaker 5: and tomorrow and will meet with mister Trump, Secretary of

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Speaker 5: State Marco Rubio, and Defense Secretary Pete Hexath, as well

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Speaker 5: as members of Congress. Attorney General Pambondi is said to

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Speaker 5: have fired multiple Justice Department employees who were involved in

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Speaker 5: two federal prosecutions of President Trump during the Biden administration.

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Speaker 5: The Washington Post reports, according to several people familiar with

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Speaker 5: the terminations, twenty people were fired from the department, including

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Speaker 5: two prosecutors who worked under former Special Consul Jack Smith.

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Speaker 5: Reports of increasing tension between ag Bondie and Deputy FBI

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Speaker 5: Director Dan Bongino over the Justice Department's handling of the

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Speaker 5: Jeffrey Epstein case. There are new details now about a

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Speaker 5: confrontation the two had last Wednesday, with Bongino reportedly storming

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Speaker 5: out Afterwards. Former US Attorney General Christie says he believes

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Speaker 5: the decision went all the way to the top.

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Speaker 10: There's no chance, in my opinion, that Pambonni made this

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Speaker 10: decision on her own. No chance she was instructed by

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Speaker 10: the White House that we're not releasing this stuff, and

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Speaker 10: that's why he's defending her.

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Speaker 5: Former AG Chris Christie was on ABC's This Week Heard

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Speaker 5: Sundays on Bloomberg Global News twenty four hours a day

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Speaker 5: and whenever you want it with the Bloomberg News Now

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Speaker 5: Michael barrn, this is Bloomberg Karen.

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Speaker 3: All right, Michael barr thank you time now for the

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Speaker 3: Bloomberg Sport brought to you by Flushing Bank. Here's John

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Speaker 3: stash Hour, John, good morning.

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Speaker 1: Good morning, Karen. Baseball has hit the All Star break.

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Speaker 1: The game is tomorrow in Atlanta. The home run derby

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Speaker 1: tonight Yankees at the Stadium, out hit ten to two

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Speaker 1: by the Cubs, who won four to one. Snapped the

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Speaker 1: six hitting time with the Dansby Swanson two on homer.

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Speaker 1: Gangs got only an early home run by John Carlos

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Speaker 1: Stanton the Cubs with fifty seven wins at the break,

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Speaker 1: the most in two thousand and eight. Yanks are fifty

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Speaker 1: three and forty three, still two games behind Toronto, and

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Speaker 1: that only one ahead of the Red Hot Red Sox,

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Speaker 1: who beat Tampa Bay four to one, have won ten

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Speaker 1: games in a row. Mets in Kansas City shut out

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Speaker 1: until two runs top of the night that tied the game,

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Speaker 1: but not for long.

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Speaker 11: Coast shake shit.

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Speaker 1: Royals TV had did. They scoredoff Sean Menaia, who in

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Speaker 1: his season debut, came in into relief and through three

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Speaker 1: scoreless innings before giving up that run. In the ninth

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Speaker 1: Mets fifty five and forty two, half game behind the Phillies.

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Speaker 1: Nationals lost eight to one at Milwaukee, and then kicked

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Speaker 1: off the MLB Draft by taking, as expected a high

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Speaker 1: school shortstop from Oklahoma whose father played to the big leagues,

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Speaker 1: but not Ethan Holiday. He went forth to Colorado, where

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Speaker 1: his father Matt played the Nats, took Eli Willits, his father,

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Speaker 1: Reggie played for the Angels. He was recently the Yankees

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Speaker 1: first base coach. Gionnick Center and Carlos Alcarez met five

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Speaker 1: weeks ago in that French Open final that Alcarez won

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Speaker 1: in five sets five and a half hours. At Wimbledon,

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Speaker 1: it went to Center in four sets, and he said

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Speaker 1: the loss in Paris may have helped.

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Speaker 12: You just have to understand what you did wrong trying

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Speaker 12: to work on that. That's exactly what we did. We

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Speaker 12: tried to accept the loss and then just kept working.

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Speaker 12: And this is for sure one of the reasons why

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Speaker 12: I hold this trophy.

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Speaker 1: Center and Alcarez dominating tennis.

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Speaker 5: They won.

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Speaker 1: The last s would be Grand slams. John Stash thatwar.

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Speaker 1: Bloomberg Sports Kat Nathan Coast to Coast on Bloomberg Radio

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Speaker 1: nationwide on serious exam and around the world on Bloomberg

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Speaker 1: dot Com and the Bloomberg Business app.

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Speaker 8: This is Bloomberg Daybreak.

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Speaker 2: Good morning, I'm Nathan Hager on a morning where trade

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Speaker 2: jitters are working through the market once again. President Trump

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Speaker 2: over the weekend threatened the European Union and Mexico with

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Speaker 2: thirty percent terraff rates. But now the President says he's

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Speaker 2: still negotiating.

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Speaker 6: So the European Union is talking to us. They want

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Speaker 6: to open up their country. I would say Japan to

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Speaker 6: a much lesser extent in terms of opening up their country,

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Speaker 6: South Korea wants to make a deal other than.

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Speaker 2: Dark But after these latest terror threats from President Trump,

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Speaker 2: Bloomberg News has learned the EU is stepping up engagement

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Speaker 2: with other countries that have come under the administration's trade crosshairs.

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Speaker 2: For more on this, we're joined by Bloomberg News Senior

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Speaker 2: editor Bill Ferries, And in fact, Bill, we're just seeing

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Speaker 2: a headline from an EU official saying that European Commissioned

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Speaker 2: President Ursula Vonderline is going to speak today with Canadian

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Speaker 2: Prime Minister Mark Karney. What further engagement can we expect here?

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Speaker 2: Is this a potential pivot away from US trade?

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Speaker 8: Good morning, Good morning Nathan.

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Speaker 13: Well, the EU negotiators, i think, found the talks that

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Speaker 13: they've been involved in really disrupted by President Trump's announcement

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Speaker 13: over the weekend that he was just looking for a

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Speaker 13: thirty percent tariff on their goods. Negotiations had been proceeding

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Speaker 13: with the assumption, really the working assumption that perhaps there

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Speaker 13: might be a lower tariff rate, but also particular carve

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Speaker 13: outs for some industries. So we're talking about German automakers,

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Speaker 13: or alcohol exports from Europe, things like that. So there

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Speaker 13: really had been a lot of progress made in kind

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Speaker 13: of a complex formula, the President saying, you know, it

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Speaker 13: might be thirty percent and we'll leave it at that.

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Speaker 13: It's you know, this could be just another negotiating tactic.

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Speaker 13: You know, it's only July fourteenth, August first is still

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Speaker 13: a long ways away. But the EU signaling but they

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Speaker 13: want to work more closely with some other US trade

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Speaker 13: partners who are perhaps feeling the same kind of heat,

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Speaker 13: including Japan and Canada. That's not clear what exactly they

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Speaker 13: might do. They might share some tips on what's going

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Speaker 13: on in their own negotiations. They might find a way

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Speaker 13: to reroot some of the trade to help soften the

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Speaker 13: blow of whatever happens with the US. But there is

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Speaker 13: this sign of a little increasing unity for people on

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Speaker 13: the other side of the negotiating table from the US

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Speaker 13: when it comes to trade.

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Speaker 2: It's interesting to point out that we are days away

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Speaker 2: from August first. You say it's a long ways off,

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Speaker 2: but it's just a little more than two and a

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Speaker 2: half weeks. And if the European Union is looking to

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Speaker 2: step up engagement with some of these very same trading

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Speaker 2: partners that the US is in the middle of negotiations,

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Speaker 2: with I mean, how much more is there to give potentially.

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Speaker 13: Yeah, I mean it is coming up soon, but it's

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Speaker 13: still two and a half weeks, and I think in

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Speaker 13: Trump world, we've seen that you can get a lot

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Speaker 13: of whiplash in a two and a half week peer period.

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Speaker 13: There are ways for European exporters to look at perhaps

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Speaker 13: different markets for some of their goods they had reached.

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Speaker 13: You know, they have reached some agreements in the past

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Speaker 13: with China on trade with other countries. I think we've

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Speaker 13: seen that in Asia as well, countries looking to find

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Speaker 13: alternatives to goods that traditionally went to the US. It's

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Speaker 13: a lot easier with things like energy and in some

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Speaker 13: cases agriculture, but in the end, US is a very

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Speaker 13: hard market to replace. So I think at the best

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Speaker 13: you hope to soften the blow, not replace your trade entirely.

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Speaker 2: Okay, So while the President continues to put pressure on

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Speaker 2: trade partners, we're also seeing him put even more pressure

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Speaker 2: on Fed chair Powell, not just over interest rates, but

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Speaker 2: now over these cost overruns at the Central Bank's renovations.

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Speaker 13: Yeah, He's been obviously hammering j Powell for months about

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Speaker 13: how he thinks Powell needs to cut rates and cut

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Speaker 13: rates faster. He calls too slow, he's called him a loser.

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Speaker 13: He's put out a lot of insults. It's not clear

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Speaker 13: if the goal is to just get Palell to quit,

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Speaker 13: if it's to get him to actually cut those rates

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Speaker 13: or what. But they have opened this new front over

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Speaker 13: these renovations taking place at the Federal Reserve headquarters that

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Speaker 13: the Fed itself admits have gone way over budget. They

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Speaker 13: say due to rising costs in the wake of the pandemic.

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Speaker 13: The administration. Trump's allies are saying, maybe there's some mismanagement here.

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Speaker 13: Palell did address that before Congress just a couple weeks ago.

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Speaker 13: He gave that explanation about the rising costs, and he

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Speaker 13: said there's no VIP elevators, there's no fancy marble going in.

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Speaker 13: It's just a matter of rising costs. But this is

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Speaker 13: a potentially dangerous new front for the Fed chief as

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Speaker 13: Congress looks to Republicans in Congress look to investigate, and

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Speaker 13: the administration hammers home this message that he should go.

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