Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we once again begin with new developments in the
Speaker 3: global trade war. This morning, a Chinese Foreign Ministry spokesman
Speaker 3: says Beijing is not having trade talks with the US
Speaker 3: and the White House should not mislead the public about talks. Yesterday,
Speaker 3: President Trump said hit his administration was talking with China
Speaker 3: on trade. We get more from Bloomberg's Rosalind mathieson.
Speaker 4: It's interesting to see the denials between them about whether
Speaker 4: they're having conversations, because it seems as if at least
Speaker 4: some kind of dialogue is going on, even at a
Speaker 4: much lower level, and those back channels might be operating.
Speaker 4: But getting from where we are now to something tangible
Speaker 4: is another question in Tylie. So even if the red
Speaker 4: trick is done down, getting to a point where we've
Speaker 4: got a proper framework on tariffs from here between China
Speaker 4: and the US or other, you know, concessions that either
Speaker 4: side makes you know, that's very much yet to be seen.
Speaker 3: It's Bloomberg's Rosalind Vathis and reporting and in another development,
Speaker 3: Bloomberg News has learned China is considering suspending it's one
Speaker 3: hundred and twenty five percent tariff on some US imports,
Speaker 3: including medical equipment and industrial chemicals like ethane.
Speaker 2: Well Nathan, Japan is trying to strike a trade deal
Speaker 2: with the US to avoid tariffs, but doesn't want to
Speaker 2: be part of a US led economic block against China,
Speaker 2: It's largest trading partner. According to current and former Japanese
Speaker 2: government officials, Japan is prioritizing its own interests and has
Speaker 2: conveyed China that it doesn't fully align with the US
Speaker 2: on ship related exports and semiconductor restrictions.
Speaker 5: Well.
Speaker 3: Meantime, Karen Treasury Secretary Scott Besson says the US and
Speaker 3: South Korea could reach an agreement of understanding on trade
Speaker 3: as soon as next week. Besson talked to reporters at
Speaker 3: an Oval Office meeting between President Trump and the Primeter
Speaker 3: of Norway.
Speaker 6: We had a very successful bilateral meeting with the public
Speaker 6: of South Korea today. We may be moving faster than
Speaker 6: I thought, and we will be talking technical terms as
Speaker 6: early as next week, as we reach an agreement on
Speaker 6: understanding as soon as next week. So South Koreans came early,
Speaker 6: They came with their a game, and we will see
Speaker 6: if they follow through on that.
Speaker 3: As Treasury Secretary Scott Bessent and South Korea's finance minister says,
Speaker 3: the two sides raiming for a deal by early July.
Speaker 3: That would be before the ninety day reprieve from higher
Speaker 3: tariffs ends.
Speaker 2: Well, Nathan, as the trade war goes on, there's a
Speaker 2: new analysis of the impact tariffs could have on Americans
Speaker 2: across the board, and we get the detls with the
Speaker 2: Bloomberg's Kimberly Adams.
Speaker 7: They'd hit lower income consumers the hardest. That's according to
Speaker 7: a report from the left leaning Institute on Taxation and
Speaker 7: Economic Policy. It finds if the tariffs now in effect
Speaker 7: stay in place next year, it would amount to a
Speaker 7: six point two percent tax increase on those making twenty
Speaker 7: eight thousand, six hundred dollars or less. That compares to
Speaker 7: one point seven percent for the wealthiest earners making close
Speaker 7: to nine hundred and fifteen thousand dollars. Economists have warned
Speaker 7: tariffs will raise prices for everyone, but low income families
Speaker 7: are likely to lose more because they tend to spend
Speaker 7: more on food and other necessities. Kim Berdley Adams Bloomberg Radio.
Speaker 3: Hi Kim, thank you, and FED Governor Christopher Waller is
Speaker 3: warning that firms could begin laying off more workers if
Speaker 3: the Trump administration reinstates aggressive tariffs.
Speaker 8: It will wouldn't surprise me that you might start seeing
Speaker 8: more layoffs tick up in the unemployment rate going forward.
Speaker 8: If the big tariffs are particular, come back on the
Speaker 8: smaller tariff world of ten to twelve percent, most of
Speaker 8: our they can deal with it. But if I see
Speaker 8: a significant drop in the labor market, then the employment
Speaker 8: side of the mandate I think is important and we
Speaker 8: step in.
Speaker 3: Federal Reserve Governor Christopher Waller made those comments in an
Speaker 3: interview with Bloomberg's Michael McKee. You can hear the full
Speaker 3: conversation on the Bloomberg Top Bucks podcast. It is available
Speaker 3: wherever you get your podcasts.
Speaker 2: Well, Nathan, we go to the latest on the war
Speaker 2: in Ukraine. Now, the Trump administration may be looking for
Speaker 2: concessions from Russia to reach a peace deal. Sources tell
Speaker 2: Bloomberg the US will demand that Russia except Ukraine's right
Speaker 2: to an army and defense ministry. When White House on
Speaker 2: voy Steve Witcoff meets with Russian President Vladimir Putin. Russia's
Speaker 2: Interfacts News service reports Witcoff has arrived in Moscow today
Speaker 2: and we get more with Bloomberg Russia reporter Greg Sullivan.
Speaker 9: Kiev and its European allies are likely to welcome this
Speaker 9: development because they've been focused on Ukraine's security after the war,
Speaker 9: whether that's security guarantees from other countries or Ukraine having
Speaker 9: the ability to defend itself. However, from the Russian side,
Speaker 9: this has been a key demand of Vladimir Putin. It's
Speaker 9: one that he's actually used to justify his invasions, saying
Speaker 9: that he needed to demilitarize Ukraine. Knowing that that has
Speaker 9: been a key concession makes it unclear whether Russia will
Speaker 9: be willing to accept that going forward.
Speaker 2: Bloomberg's Ray Sullivan orpoorts the US also wants Moscow to
Speaker 2: return to Ukraine's Zaporegia nuclear power plant, along with land
Speaker 2: occupied by Russia in the Kharkiv region.
Speaker 3: Turning back to markets now, Karen stocks are higher around
Speaker 3: the world as we close out the trading week. The
Speaker 3: S and P five hundred rows two percent yesterday, closing
Speaker 3: at its highest level since the day President Trump announced
Speaker 3: his tariff offensive. This morning, shares of Alphabet are up
Speaker 3: five and a half percent in early trading. The Google
Speaker 3: parent reported first quarter revenue and profit that beat analyst expectations,
Speaker 3: fueled by continued strength in its search advertising business. Man
Speaker 3: Deep Singh is a senior tech analyst at Bloomberg Intelligence.
Speaker 5: Google Services revenue was a slight beat, but what was
Speaker 5: really impressive was the margin beat on the Google Services.
Speaker 5: And a lot of it is because everyone thought, because
Speaker 5: they're adding AI overviews, that's going to hurt the margins
Speaker 5: of search. Oh, it didn't happen.
Speaker 3: Bloomberg Intelligence is man Deep Singh also notes Alphabet's first
Speaker 3: qui profit was boosted by eight billion dollars in unrealized
Speaker 3: gains from an investment in Elon Musk's SpaceX.
Speaker 2: Well on the flip side, Nathan shares of Intel are
Speaker 2: down five and a half percent. The struggling chip maker
Speaker 2: gave a revenue forecast for the current quarter that was
Speaker 2: well below what analysts projected, and Intel's chief financial officer
Speaker 2: is also warning that a tariff fueled recession could torpedo
Speaker 2: chip demand.
Speaker 3: And another big tech company is making a strategy change, Karen,
Speaker 3: that would be Apple. Bloomberg News has learned the tech
Speaker 3: giants saman to shift major parts of its supply chain
Speaker 3: out of China. Source to say the company plans to
Speaker 3: make most of its US sold iPhones in India by
Speaker 3: the end of next year. That means Apple would need
Speaker 3: to roughly double its iPhone output in the South Asian country.
Speaker 3: Apple sells more than sixty million iPhones a year in
Speaker 3: the US.
Speaker 2: Time now for a look at some of the other
Speaker 2: stories making news in New York and around the world,
Speaker 2: and for that were joined by Bloomberg's Michael Barr Michael,
Speaker 2: good Morning, Good.
Speaker 10: Morning, Karen. Heads of state and royalty are traveling to
Speaker 10: Rome for Pope Francis's funeral tomorrow at the Vatican. President
Speaker 10: Donald Trump and Argentine President Javier Malay are among the
Speaker 10: leaders arriving today. Meanwhile, today is the last day Francis
Speaker 10: will lying in state at Saint Peter's Basilica before his
Speaker 10: coffin is sealed in preparation for his funeral. After the
Speaker 10: services and burial, attention will turn to the conclave to
Speaker 10: elect a new pope. A date hasn't been set yet.
Speaker 10: Retired Los Angeles Archbishop Roger Mahoney, who was in the
Speaker 10: last two conclaves, says those votes went fast, but he
Speaker 10: doesn't expect the same this time.
Speaker 11: The challenge is this time is there so many new
Speaker 11: cardinals from far away places who don't have the opportunity
Speaker 11: to travel and are not as involved with the other.
Speaker 10: Cardinals retire and Archbishop Mahoney has been selected to play
Speaker 10: a key role in the closing of Pope Francis's casket.
Speaker 10: A US judge has temporarily blocked parts President Trump's executive
Speaker 10: order that calls from major changes to US election rules
Speaker 10: that includes a first of its kind demand for proof
Speaker 10: of citizenship to vote. A nineteen year old from New
Speaker 10: Jersey is facing arson charges for the wildfire burning in
Speaker 10: the southern part of the state. The blaze has grown
Speaker 10: to over fifteen thousand acres with fifty percent containment. Ocean
Speaker 10: County Prosecutor Bradley Billheimer says investigators believe the wildfire was
Speaker 10: started as a bonfire using wooden pallettes that weren't fully extinguished.
Speaker 12: I'm not prepared to discuss the motive at this time,
Speaker 12: nor does the state have to prove what the motive is.
Speaker 12: We can just confidently say that we think the fire
Speaker 12: was said intentionally.
Speaker 10: Joseph Kling has been charged. Disgraced former New York Congressman
Speaker 10: George Santos is potentially facing eighty seven months in prison
Speaker 10: for an array of fraud charges. He will be sentenced
Speaker 10: in federal court today. NASA is canceling the lease of
Speaker 10: its New York City climate science unit that has occupied
Speaker 10: the same Columbia University owned building since the nineteen sixties.
Speaker 10: A NASA spokesman says the move is part of President
Speaker 10: Trump's review of federal releases. Global News twenty four hours
Speaker 10: a day and whenever you want it with Bloomberg News Now,
Speaker 10: Michael Barn, this is Bloomberg.
Speaker 2: Hearen all right, Michael Barn, thank you. Time now for
Speaker 2: the Bloomberg Scores update with John Stanshauer.
Speaker 13: John, good morning, Jim Morty Kren A little more like
Speaker 13: it for the next They corrected a lot of the
Speaker 13: problems from the game two lost to the Pistons at
Speaker 13: the Garden in Detroit. They scored twenty four more points
Speaker 13: than in Game two. They made ten more free throws.
Speaker 13: Karl Anthony, Towns and og On Andobi went from a
Speaker 13: combined twenty points to team up for fifty three the
Speaker 13: next one one eighteen one, sixteen. They lead the series
Speaker 13: two to one, with Game four in Detroit. On Sunday,
Speaker 13: the Clippers walloped Denver by thirty four. LA's up two
Speaker 13: to one. Oklahoma City has a three nothing lead on Memphis.
Speaker 13: The thunder trail by twenty six at halftime, won the
Speaker 13: second half sixty three to thirty. Stanley Cup playoff wins
Speaker 13: for Florida, Minnesota, Saint Louis and Toronto won and over time,
Speaker 13: the NFL drafted Green Bay began as expected quarterback camp
Speaker 13: Ward to Tennessee. Travis Hunter was as everyone thought he'd
Speaker 13: be the second player taken, but not by Cleveland. He's
Speaker 13: going to Jacksonville, who traded up. And then it was
Speaker 13: the Giants turn into No one's surprise. They took penn
Speaker 13: State pass Rusher Abdul Carter. The Giants gentle manager is
Speaker 13: Joe Shane.
Speaker 14: Great kid. We spent a lot of time with him.
Speaker 14: He'd been in constant communication with him. I know, you
Speaker 14: know you guys asked last time about the foot. We
Speaker 14: feel good about the foot.
Speaker 3: Where he is.
Speaker 14: He's he's been running, been working out, you know, so
Speaker 14: we're not really concerned with that at this point. But
Speaker 14: uh again, we're just excited to add a really good
Speaker 14: football player to the organization, and you know, it was
Speaker 14: really going to help our defense move forward.
Speaker 13: Tackles went fourth and seventh, LSU's Will Campbell to the Patriots,
Speaker 13: Missouri's armand Membo to the Jets. The Commanders also took
Speaker 13: a tackle Oregon's Josh Connelly. The big new is the
Speaker 13: night game of the twenty fifth pick. The Giants made
Speaker 13: a trade with Houston and took Ole miss quarterback Jackson Dart.
Speaker 13: So while the Giants have added veteran qbs Russell Wilson
Speaker 13: and Jamis Winston, Dart becomes the QB of the future.
Speaker 13: They took him and not Colorado's Shador Sanders, who something
Speaker 13: might be taking as high as second overall. Sanders was
Speaker 13: not drafted last night. Now available for tonight's start of
Speaker 13: Round two. John's Dashaway Bloomberg Sports Karen Nathan Coast to
Speaker 13: coast on Bloomberg Radio, nationwide on Sirius XM, and around
Speaker 13: the world on Bloomberg dot Com and the Bloomberg Business app.
Speaker 1: This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager, as we continue to follow
Speaker 3: the mood swings and the rhetoric swings when it comes
Speaker 3: to trade and tariff's, President Trump says, when it comes
Speaker 3: to China, both sides are talking.
Speaker 11: They had a.
Speaker 15: Meeting this morning, so I can't tell you it doesn't
Speaker 15: matter who they is. We may reveal it later, but
Speaker 15: they had meetings this morning, and we've been meeting with China.
Speaker 3: That was the President speaking at the White House yesterday.
Speaker 3: But this morning, China's Farm our Ministry is reiterating that
Speaker 3: no talks are underway, and a spokesman says the US
Speaker 3: should stop misleading the public. For the very latest, we
Speaker 3: were joined by Bloomberg Markets reporter Valerie Titel. So, Valerie,
Speaker 3: are the US and China talking or not? Good morning?
Speaker 1: Hey, that's a great question. I'll think anybody knows the answer.
Speaker 1: Lots of contradictions all around. But I think the thing
Speaker 1: that was most interesting this morning, Nathan, was some news
Speaker 1: that sources we're telling Bloomberg that China is looking at
Speaker 1: tariff exemptions for certain industries, one of those being the
Speaker 1: medical industry, maybe some chip components some exemptions there. But
Speaker 1: they also came out and contradicted that as well. We
Speaker 1: had a China spokesman saying they're not familiar with these
Speaker 1: reports on China tariff exemption. So a lot of back
Speaker 1: and forth, a lot of uncertainty when it comes to
Speaker 1: the picture on the US China trade situation. Though, I
Speaker 1: have to say, Nathan, the equity market is looking through
Speaker 1: a lot of this. The S and P five hundred
Speaker 1: is in the green when it comes to the futures,
Speaker 1: and if you look at how the move the week,
Speaker 1: what that's been like. It's up nearly four and a
Speaker 1: half percent for the S and P futures and look, Nathan,
Speaker 1: that's going to be its second best week of the
Speaker 1: year if this move hold. So it seems like there
Speaker 1: is a lot of positivity when it comes to the
Speaker 1: equity market and risk sentiment. Maybe the big takeaway from
Speaker 1: this week is, yes, there's still a lot of moving parts,
Speaker 1: but it seems like the trend for tariffs is downward
Speaker 1: and we're headed towards de escalation on the trade warfront.
Speaker 3: Yeah, there are so many moving parts. Whether or not
Speaker 3: the US and China are talking, whether they're definitions of
Speaker 3: talking are a little bit different. There's also some word
Speaker 3: that China might not be just looking at exemptions for
Speaker 3: some US imports, but also looking to stimulate, looking for
Speaker 3: some stimulus for its economy as well.
Speaker 7: Yeah, that's right.
Speaker 1: We heard from the Pollitt Borrow this morning. They said
Speaker 1: they're preparing emergency plans amid external shots, wanting to boost
Speaker 1: internal demand, and looking up at setting up new financing
Speaker 1: and policy tools. They also said they want to support
Speaker 1: enterprises that are affected by tariffs. So it does seem
Speaker 1: like the poll Up Bureau is ready to stand there
Speaker 1: with some support to its industries that are hurt by tariffs.
Speaker 1: You know, that did kind of boost the dollar. Hearing
Speaker 1: this overnight, the Bloomberg Dollar indexes up three tens of
Speaker 1: one percent. It seems like the move from overnight is
Speaker 1: really just kind of unwinding the sell America trade, Nathan,
Speaker 1: that kind of grafts our attention. On Monday, we're seeing
Speaker 1: those currencies like the Japanese yen, the euro, and the
Speaker 1: Swiss frank those that have acted like safe havens in
Speaker 1: the last few weeks losing some ground in the front
Speaker 1: of dollar strength this morning.
Speaker 3: And of course we also heard from Treasury Secretary Scott
Speaker 3: bess And talking about how talks with South Korea may
Speaker 3: be going along a lot more quickly than even he expected.
Speaker 3: And also some word this morning on potentially what the
Speaker 3: framework of a US trade deal with India could look like.
Speaker 1: Yeah, it seems like the Trump administration is eager to
Speaker 1: announce one framework deal, you know, before Trump's one hundred
Speaker 1: days next week. We had Bloomberg reporting just a few
Speaker 1: hours ago that the US is seeking an India trade
Speaker 1: deal on e commerce, crops and data storage. So maybe
Speaker 1: these are our first glimpse on what these framework deals
Speaker 1: are going to look like when it comes to the
Speaker 1: nations that the US is negotiating with. But yeah, you're right,
Speaker 1: we've had positive news on the India framework deal. Also
Speaker 1: those comments from Treasury Secretary Scott Bessent yesterday talking about
Speaker 1: imminent framework deal with South Korea. So things are looking
Speaker 1: more positive in terms of the trade war and in
Speaker 1: terms of de escalation. But I think the market is
Speaker 1: really eager to see one of these deal frameworks on paper,
Speaker 1: so maybe we can draw a bit more conclusions about
Speaker 1: what the Trump administration is really trying to negotiate for
Speaker 1: with these trading partners.
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Speaker 3: I'm Karen Moscow and I'm Nathan Hager. Join us again
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