WEBVTT - China Denies U.S. Trade Talks; Apple's New iPhone Plan

0:00:02.560 --> 0:00:07.040
<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

0:00:10.280 --> 0:00:13.440
<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

0:00:13.480 --> 0:00:15.200
<v Speaker 2>are the stories we're following today.

0:00:15.520 --> 0:00:18.079
<v Speaker 3>Karen, we once again begin with new developments in the

0:00:18.120 --> 0:00:21.400
<v Speaker 3>global trade war. This morning, a Chinese Foreign Ministry spokesman

0:00:21.480 --> 0:00:24.840
<v Speaker 3>says Beijing is not having trade talks with the US

0:00:25.000 --> 0:00:29.560
<v Speaker 3>and the White House should not mislead the public about talks. Yesterday,

0:00:29.640 --> 0:00:33.520
<v Speaker 3>President Trump said hit his administration was talking with China

0:00:33.720 --> 0:00:37.400
<v Speaker 3>on trade. We get more from Bloomberg's Rosalind mathieson.

0:00:37.320 --> 0:00:41.120
<v Speaker 4>It's interesting to see the denials between them about whether

0:00:41.120 --> 0:00:44.120
<v Speaker 4>they're having conversations, because it seems as if at least

0:00:44.159 --> 0:00:47.080
<v Speaker 4>some kind of dialogue is going on, even at a

0:00:47.159 --> 0:00:51.360
<v Speaker 4>much lower level, and those back channels might be operating.

0:00:51.760 --> 0:00:55.680
<v Speaker 4>But getting from where we are now to something tangible

0:00:56.160 --> 0:00:58.760
<v Speaker 4>is another question in Tylie. So even if the red

0:00:58.760 --> 0:01:01.920
<v Speaker 4>trick is done down, getting to a point where we've

0:01:01.960 --> 0:01:06.240
<v Speaker 4>got a proper framework on tariffs from here between China

0:01:06.240 --> 0:01:09.160
<v Speaker 4>and the US or other, you know, concessions that either

0:01:09.240 --> 0:01:11.640
<v Speaker 4>side makes you know, that's very much yet to be seen.

0:01:12.040 --> 0:01:15.200
<v Speaker 3>It's Bloomberg's Rosalind Vathis and reporting and in another development,

0:01:15.240 --> 0:01:18.319
<v Speaker 3>Bloomberg News has learned China is considering suspending it's one

0:01:18.360 --> 0:01:21.520
<v Speaker 3>hundred and twenty five percent tariff on some US imports,

0:01:21.520 --> 0:01:25.319
<v Speaker 3>including medical equipment and industrial chemicals like ethane.

0:01:25.959 --> 0:01:28.600
<v Speaker 2>Well Nathan, Japan is trying to strike a trade deal

0:01:28.640 --> 0:01:31.200
<v Speaker 2>with the US to avoid tariffs, but doesn't want to

0:01:31.200 --> 0:01:34.120
<v Speaker 2>be part of a US led economic block against China,

0:01:34.160 --> 0:01:37.800
<v Speaker 2>It's largest trading partner. According to current and former Japanese

0:01:37.800 --> 0:01:41.480
<v Speaker 2>government officials, Japan is prioritizing its own interests and has

0:01:41.520 --> 0:01:44.319
<v Speaker 2>conveyed China that it doesn't fully align with the US

0:01:44.360 --> 0:01:47.640
<v Speaker 2>on ship related exports and semiconductor restrictions.

0:01:47.760 --> 0:01:47.880
<v Speaker 5>Well.

0:01:47.880 --> 0:01:50.960
<v Speaker 3>Meantime, Karen Treasury Secretary Scott Besson says the US and

0:01:51.120 --> 0:01:54.480
<v Speaker 3>South Korea could reach an agreement of understanding on trade

0:01:54.520 --> 0:01:57.320
<v Speaker 3>as soon as next week. Besson talked to reporters at

0:01:57.320 --> 0:02:00.280
<v Speaker 3>an Oval Office meeting between President Trump and the Primeter

0:02:00.320 --> 0:02:00.840
<v Speaker 3>of Norway.

0:02:01.120 --> 0:02:04.400
<v Speaker 6>We had a very successful bilateral meeting with the public

0:02:04.440 --> 0:02:09.280
<v Speaker 6>of South Korea today. We may be moving faster than

0:02:09.320 --> 0:02:12.839
<v Speaker 6>I thought, and we will be talking technical terms as

0:02:12.919 --> 0:02:16.280
<v Speaker 6>early as next week, as we reach an agreement on

0:02:16.480 --> 0:02:20.720
<v Speaker 6>understanding as soon as next week. So South Koreans came early,

0:02:21.040 --> 0:02:23.720
<v Speaker 6>They came with their a game, and we will see

0:02:23.760 --> 0:02:24.960
<v Speaker 6>if they follow through on that.

0:02:25.440 --> 0:02:29.360
<v Speaker 3>As Treasury Secretary Scott Bessent and South Korea's finance minister says,

0:02:29.400 --> 0:02:31.800
<v Speaker 3>the two sides raiming for a deal by early July.

0:02:32.080 --> 0:02:34.959
<v Speaker 3>That would be before the ninety day reprieve from higher

0:02:34.960 --> 0:02:35.840
<v Speaker 3>tariffs ends.

0:02:36.680 --> 0:02:39.000
<v Speaker 2>Well, Nathan, as the trade war goes on, there's a

0:02:39.040 --> 0:02:41.960
<v Speaker 2>new analysis of the impact tariffs could have on Americans

0:02:42.000 --> 0:02:43.720
<v Speaker 2>across the board, and we get the detls with the

0:02:43.760 --> 0:02:45.320
<v Speaker 2>Bloomberg's Kimberly Adams.

0:02:45.600 --> 0:02:48.840
<v Speaker 7>They'd hit lower income consumers the hardest. That's according to

0:02:48.880 --> 0:02:51.560
<v Speaker 7>a report from the left leaning Institute on Taxation and

0:02:51.680 --> 0:02:55.320
<v Speaker 7>Economic Policy. It finds if the tariffs now in effect

0:02:55.480 --> 0:02:57.800
<v Speaker 7>stay in place next year, it would amount to a

0:02:57.880 --> 0:03:01.320
<v Speaker 7>six point two percent tax increase on those making twenty

0:03:01.320 --> 0:03:04.520
<v Speaker 7>eight thousand, six hundred dollars or less. That compares to

0:03:04.680 --> 0:03:07.840
<v Speaker 7>one point seven percent for the wealthiest earners making close

0:03:07.919 --> 0:03:11.280
<v Speaker 7>to nine hundred and fifteen thousand dollars. Economists have warned

0:03:11.560 --> 0:03:15.040
<v Speaker 7>tariffs will raise prices for everyone, but low income families

0:03:15.080 --> 0:03:18.080
<v Speaker 7>are likely to lose more because they tend to spend

0:03:18.080 --> 0:03:22.200
<v Speaker 7>more on food and other necessities. Kim Berdley Adams Bloomberg Radio.

0:03:22.200 --> 0:03:24.720
<v Speaker 3>Hi Kim, thank you, and FED Governor Christopher Waller is

0:03:24.760 --> 0:03:27.960
<v Speaker 3>warning that firms could begin laying off more workers if

0:03:28.000 --> 0:03:31.040
<v Speaker 3>the Trump administration reinstates aggressive tariffs.

0:03:31.440 --> 0:03:34.480
<v Speaker 8>It will wouldn't surprise me that you might start seeing

0:03:34.560 --> 0:03:38.560
<v Speaker 8>more layoffs tick up in the unemployment rate going forward.

0:03:39.280 --> 0:03:41.520
<v Speaker 8>If the big tariffs are particular, come back on the

0:03:41.600 --> 0:03:44.720
<v Speaker 8>smaller tariff world of ten to twelve percent, most of

0:03:44.800 --> 0:03:47.080
<v Speaker 8>our they can deal with it. But if I see

0:03:47.120 --> 0:03:50.520
<v Speaker 8>a significant drop in the labor market, then the employment

0:03:50.560 --> 0:03:52.240
<v Speaker 8>side of the mandate I think is important and we

0:03:52.280 --> 0:03:52.839
<v Speaker 8>step in.

0:03:53.160 --> 0:03:55.960
<v Speaker 3>Federal Reserve Governor Christopher Waller made those comments in an

0:03:55.960 --> 0:03:58.480
<v Speaker 3>interview with Bloomberg's Michael McKee. You can hear the full

0:03:58.520 --> 0:04:01.960
<v Speaker 3>conversation on the Bloomberg Top Bucks podcast. It is available

0:04:01.960 --> 0:04:03.480
<v Speaker 3>wherever you get your podcasts.

0:04:03.680 --> 0:04:05.560
<v Speaker 2>Well, Nathan, we go to the latest on the war

0:04:05.640 --> 0:04:08.400
<v Speaker 2>in Ukraine. Now, the Trump administration may be looking for

0:04:08.560 --> 0:04:11.880
<v Speaker 2>concessions from Russia to reach a peace deal. Sources tell

0:04:11.880 --> 0:04:15.800
<v Speaker 2>Bloomberg the US will demand that Russia except Ukraine's right

0:04:15.880 --> 0:04:18.960
<v Speaker 2>to an army and defense ministry. When White House on

0:04:19.120 --> 0:04:22.919
<v Speaker 2>voy Steve Witcoff meets with Russian President Vladimir Putin. Russia's

0:04:22.920 --> 0:04:26.560
<v Speaker 2>Interfacts News service reports Witcoff has arrived in Moscow today

0:04:26.839 --> 0:04:29.960
<v Speaker 2>and we get more with Bloomberg Russia reporter Greg Sullivan.

0:04:30.440 --> 0:04:32.839
<v Speaker 9>Kiev and its European allies are likely to welcome this

0:04:32.880 --> 0:04:37.760
<v Speaker 9>development because they've been focused on Ukraine's security after the war,

0:04:38.279 --> 0:04:41.040
<v Speaker 9>whether that's security guarantees from other countries or Ukraine having

0:04:41.040 --> 0:04:44.839
<v Speaker 9>the ability to defend itself. However, from the Russian side,

0:04:44.920 --> 0:04:47.040
<v Speaker 9>this has been a key demand of Vladimir Putin. It's

0:04:47.080 --> 0:04:50.440
<v Speaker 9>one that he's actually used to justify his invasions, saying

0:04:50.440 --> 0:04:54.160
<v Speaker 9>that he needed to demilitarize Ukraine. Knowing that that has

0:04:54.160 --> 0:04:57.960
<v Speaker 9>been a key concession makes it unclear whether Russia will

0:04:57.960 --> 0:04:59.880
<v Speaker 9>be willing to accept that going forward.

0:05:00.279 --> 0:05:03.719
<v Speaker 2>Bloomberg's Ray Sullivan orpoorts the US also wants Moscow to

0:05:03.760 --> 0:05:07.400
<v Speaker 2>return to Ukraine's Zaporegia nuclear power plant, along with land

0:05:07.440 --> 0:05:10.000
<v Speaker 2>occupied by Russia in the Kharkiv region.

0:05:10.279 --> 0:05:13.239
<v Speaker 3>Turning back to markets now, Karen stocks are higher around

0:05:13.240 --> 0:05:14.960
<v Speaker 3>the world as we close out the trading week. The

0:05:15.040 --> 0:05:17.760
<v Speaker 3>S and P five hundred rows two percent yesterday, closing

0:05:17.760 --> 0:05:20.640
<v Speaker 3>at its highest level since the day President Trump announced

0:05:20.640 --> 0:05:24.360
<v Speaker 3>his tariff offensive. This morning, shares of Alphabet are up

0:05:24.400 --> 0:05:26.719
<v Speaker 3>five and a half percent in early trading. The Google

0:05:26.760 --> 0:05:30.760
<v Speaker 3>parent reported first quarter revenue and profit that beat analyst expectations,

0:05:31.000 --> 0:05:35.280
<v Speaker 3>fueled by continued strength in its search advertising business. Man

0:05:35.320 --> 0:05:38.600
<v Speaker 3>Deep Singh is a senior tech analyst at Bloomberg Intelligence.

0:05:39.080 --> 0:05:42.640
<v Speaker 5>Google Services revenue was a slight beat, but what was

0:05:42.680 --> 0:05:46.000
<v Speaker 5>really impressive was the margin beat on the Google Services.

0:05:46.200 --> 0:05:49.960
<v Speaker 5>And a lot of it is because everyone thought, because

0:05:50.080 --> 0:05:53.800
<v Speaker 5>they're adding AI overviews, that's going to hurt the margins

0:05:53.960 --> 0:05:56.040
<v Speaker 5>of search. Oh, it didn't happen.

0:05:56.960 --> 0:05:59.800
<v Speaker 3>Bloomberg Intelligence is man Deep Singh also notes Alphabet's first

0:05:59.839 --> 0:06:03.120
<v Speaker 3>qui profit was boosted by eight billion dollars in unrealized

0:06:03.160 --> 0:06:06.320
<v Speaker 3>gains from an investment in Elon Musk's SpaceX.

0:06:06.920 --> 0:06:09.280
<v Speaker 2>Well on the flip side, Nathan shares of Intel are

0:06:09.320 --> 0:06:11.960
<v Speaker 2>down five and a half percent. The struggling chip maker

0:06:11.960 --> 0:06:14.560
<v Speaker 2>gave a revenue forecast for the current quarter that was

0:06:14.600 --> 0:06:17.960
<v Speaker 2>well below what analysts projected, and Intel's chief financial officer

0:06:18.040 --> 0:06:22.040
<v Speaker 2>is also warning that a tariff fueled recession could torpedo

0:06:22.200 --> 0:06:23.240
<v Speaker 2>chip demand.

0:06:23.120 --> 0:06:26.719
<v Speaker 3>And another big tech company is making a strategy change, Karen,

0:06:26.839 --> 0:06:29.520
<v Speaker 3>that would be Apple. Bloomberg News has learned the tech

0:06:29.560 --> 0:06:32.320
<v Speaker 3>giants saman to shift major parts of its supply chain

0:06:32.400 --> 0:06:34.880
<v Speaker 3>out of China. Source to say the company plans to

0:06:34.920 --> 0:06:38.160
<v Speaker 3>make most of its US sold iPhones in India by

0:06:38.160 --> 0:06:40.760
<v Speaker 3>the end of next year. That means Apple would need

0:06:40.760 --> 0:06:44.520
<v Speaker 3>to roughly double its iPhone output in the South Asian country.

0:06:44.560 --> 0:06:47.839
<v Speaker 3>Apple sells more than sixty million iPhones a year in

0:06:47.920 --> 0:06:48.560
<v Speaker 3>the US.

0:06:52.080 --> 0:06:53.280
<v Speaker 2>Time now for a look at some of the other

0:06:53.360 --> 0:06:55.520
<v Speaker 2>stories making news in New York and around the world,

0:06:55.520 --> 0:06:58.039
<v Speaker 2>and for that were joined by Bloomberg's Michael Barr Michael,

0:06:58.040 --> 0:06:59.000
<v Speaker 2>good Morning, Good.

0:06:58.800 --> 0:07:01.919
<v Speaker 10>Morning, Karen. Heads of state and royalty are traveling to

0:07:02.000 --> 0:07:05.599
<v Speaker 10>Rome for Pope Francis's funeral tomorrow at the Vatican. President

0:07:05.720 --> 0:07:09.240
<v Speaker 10>Donald Trump and Argentine President Javier Malay are among the

0:07:09.320 --> 0:07:13.320
<v Speaker 10>leaders arriving today. Meanwhile, today is the last day Francis

0:07:13.360 --> 0:07:16.760
<v Speaker 10>will lying in state at Saint Peter's Basilica before his

0:07:16.880 --> 0:07:20.440
<v Speaker 10>coffin is sealed in preparation for his funeral. After the

0:07:20.560 --> 0:07:24.520
<v Speaker 10>services and burial, attention will turn to the conclave to

0:07:24.600 --> 0:07:27.679
<v Speaker 10>elect a new pope. A date hasn't been set yet.

0:07:27.920 --> 0:07:32.200
<v Speaker 10>Retired Los Angeles Archbishop Roger Mahoney, who was in the

0:07:32.320 --> 0:07:36.360
<v Speaker 10>last two conclaves, says those votes went fast, but he

0:07:36.440 --> 0:07:38.120
<v Speaker 10>doesn't expect the same this time.

0:07:38.640 --> 0:07:41.960
<v Speaker 11>The challenge is this time is there so many new

0:07:42.040 --> 0:07:46.320
<v Speaker 11>cardinals from far away places who don't have the opportunity

0:07:46.400 --> 0:07:49.840
<v Speaker 11>to travel and are not as involved with the other.

0:07:49.720 --> 0:07:53.880
<v Speaker 10>Cardinals retire and Archbishop Mahoney has been selected to play

0:07:53.880 --> 0:07:57.040
<v Speaker 10>a key role in the closing of Pope Francis's casket.

0:07:57.440 --> 0:08:01.320
<v Speaker 10>A US judge has temporarily blocked parts President Trump's executive

0:08:01.440 --> 0:08:04.560
<v Speaker 10>order that calls from major changes to US election rules

0:08:04.840 --> 0:08:07.480
<v Speaker 10>that includes a first of its kind demand for proof

0:08:07.560 --> 0:08:10.560
<v Speaker 10>of citizenship to vote. A nineteen year old from New

0:08:10.640 --> 0:08:14.680
<v Speaker 10>Jersey is facing arson charges for the wildfire burning in

0:08:14.720 --> 0:08:17.400
<v Speaker 10>the southern part of the state. The blaze has grown

0:08:17.480 --> 0:08:21.800
<v Speaker 10>to over fifteen thousand acres with fifty percent containment. Ocean

0:08:21.840 --> 0:08:26.440
<v Speaker 10>County Prosecutor Bradley Billheimer says investigators believe the wildfire was

0:08:26.480 --> 0:08:31.600
<v Speaker 10>started as a bonfire using wooden pallettes that weren't fully extinguished.

0:08:32.640 --> 0:08:35.320
<v Speaker 12>I'm not prepared to discuss the motive at this time,

0:08:36.080 --> 0:08:38.440
<v Speaker 12>nor does the state have to prove what the motive is.

0:08:39.360 --> 0:08:42.440
<v Speaker 12>We can just confidently say that we think the fire

0:08:42.520 --> 0:08:43.360
<v Speaker 12>was said intentionally.

0:08:43.559 --> 0:08:47.640
<v Speaker 10>Joseph Kling has been charged. Disgraced former New York Congressman

0:08:47.679 --> 0:08:51.000
<v Speaker 10>George Santos is potentially facing eighty seven months in prison

0:08:51.280 --> 0:08:53.640
<v Speaker 10>for an array of fraud charges. He will be sentenced

0:08:53.679 --> 0:08:57.040
<v Speaker 10>in federal court today. NASA is canceling the lease of

0:08:57.080 --> 0:09:00.960
<v Speaker 10>its New York City climate science unit that has occupied

0:09:01.040 --> 0:09:05.079
<v Speaker 10>the same Columbia University owned building since the nineteen sixties.

0:09:05.520 --> 0:09:08.240
<v Speaker 10>A NASA spokesman says the move is part of President

0:09:08.280 --> 0:09:11.800
<v Speaker 10>Trump's review of federal releases. Global News twenty four hours

0:09:11.800 --> 0:09:14.480
<v Speaker 10>a day and whenever you want it with Bloomberg News Now,

0:09:14.880 --> 0:09:16.600
<v Speaker 10>Michael Barn, this is Bloomberg.

0:09:16.640 --> 0:09:23.480
<v Speaker 2>Hearen all right, Michael Barn, thank you. Time now for

0:09:23.520 --> 0:09:26.160
<v Speaker 2>the Bloomberg Scores update with John Stanshauer.

0:09:26.240 --> 0:09:28.240
<v Speaker 13>John, good morning, Jim Morty Kren A little more like

0:09:28.280 --> 0:09:30.120
<v Speaker 13>it for the next They corrected a lot of the

0:09:30.200 --> 0:09:32.480
<v Speaker 13>problems from the game two lost to the Pistons at

0:09:32.480 --> 0:09:35.640
<v Speaker 13>the Garden in Detroit. They scored twenty four more points

0:09:35.640 --> 0:09:37.840
<v Speaker 13>than in Game two. They made ten more free throws.

0:09:38.080 --> 0:09:40.360
<v Speaker 13>Karl Anthony, Towns and og On Andobi went from a

0:09:40.400 --> 0:09:43.800
<v Speaker 13>combined twenty points to team up for fifty three the

0:09:43.840 --> 0:09:46.600
<v Speaker 13>next one one eighteen one, sixteen. They lead the series

0:09:46.600 --> 0:09:49.160
<v Speaker 13>two to one, with Game four in Detroit. On Sunday,

0:09:49.200 --> 0:09:52.440
<v Speaker 13>the Clippers walloped Denver by thirty four. LA's up two

0:09:52.440 --> 0:09:55.400
<v Speaker 13>to one. Oklahoma City has a three nothing lead on Memphis.

0:09:55.400 --> 0:09:58.200
<v Speaker 13>The thunder trail by twenty six at halftime, won the

0:09:58.240 --> 0:10:01.440
<v Speaker 13>second half sixty three to thirty. Stanley Cup playoff wins

0:10:01.440 --> 0:10:05.320
<v Speaker 13>for Florida, Minnesota, Saint Louis and Toronto won and over time,

0:10:05.679 --> 0:10:08.959
<v Speaker 13>the NFL drafted Green Bay began as expected quarterback camp

0:10:08.960 --> 0:10:12.320
<v Speaker 13>Ward to Tennessee. Travis Hunter was as everyone thought he'd

0:10:12.320 --> 0:10:14.440
<v Speaker 13>be the second player taken, but not by Cleveland. He's

0:10:14.480 --> 0:10:17.000
<v Speaker 13>going to Jacksonville, who traded up. And then it was

0:10:17.040 --> 0:10:19.800
<v Speaker 13>the Giants turn into No one's surprise. They took penn

0:10:19.880 --> 0:10:23.320
<v Speaker 13>State pass Rusher Abdul Carter. The Giants gentle manager is

0:10:23.400 --> 0:10:24.479
<v Speaker 13>Joe Shane.

0:10:24.280 --> 0:10:26.719
<v Speaker 14>Great kid. We spent a lot of time with him.

0:10:26.840 --> 0:10:29.000
<v Speaker 14>He'd been in constant communication with him. I know, you

0:10:29.000 --> 0:10:31.360
<v Speaker 14>know you guys asked last time about the foot. We

0:10:31.400 --> 0:10:32.240
<v Speaker 14>feel good about the foot.

0:10:32.280 --> 0:10:32.760
<v Speaker 3>Where he is.

0:10:32.960 --> 0:10:36.160
<v Speaker 14>He's he's been running, been working out, you know, so

0:10:36.200 --> 0:10:38.720
<v Speaker 14>we're not really concerned with that at this point. But

0:10:38.840 --> 0:10:41.160
<v Speaker 14>uh again, we're just excited to add a really good

0:10:41.160 --> 0:10:43.120
<v Speaker 14>football player to the organization, and you know, it was

0:10:43.120 --> 0:10:44.680
<v Speaker 14>really going to help our defense move forward.

0:10:44.760 --> 0:10:49.040
<v Speaker 13>Tackles went fourth and seventh, LSU's Will Campbell to the Patriots,

0:10:49.040 --> 0:10:52.600
<v Speaker 13>Missouri's armand Membo to the Jets. The Commanders also took

0:10:52.600 --> 0:10:55.000
<v Speaker 13>a tackle Oregon's Josh Connelly. The big new is the

0:10:55.080 --> 0:10:56.920
<v Speaker 13>night game of the twenty fifth pick. The Giants made

0:10:56.920 --> 0:11:00.400
<v Speaker 13>a trade with Houston and took Ole miss quarterback Jackson Dart.

0:11:00.520 --> 0:11:03.160
<v Speaker 13>So while the Giants have added veteran qbs Russell Wilson

0:11:03.160 --> 0:11:06.280
<v Speaker 13>and Jamis Winston, Dart becomes the QB of the future.

0:11:06.320 --> 0:11:09.880
<v Speaker 13>They took him and not Colorado's Shador Sanders, who something

0:11:10.000 --> 0:11:12.680
<v Speaker 13>might be taking as high as second overall. Sanders was

0:11:12.760 --> 0:11:15.920
<v Speaker 13>not drafted last night. Now available for tonight's start of

0:11:16.000 --> 0:11:21.800
<v Speaker 13>Round two. John's Dashaway Bloomberg Sports Karen Nathan Coast to

0:11:21.880 --> 0:11:26.360
<v Speaker 13>coast on Bloomberg Radio, nationwide on Sirius XM, and around

0:11:26.360 --> 0:11:29.760
<v Speaker 13>the world on Bloomberg dot Com and the Bloomberg Business app.

0:11:30.080 --> 0:11:31.680
<v Speaker 1>This is Bloomberg Daybreak.

0:11:31.840 --> 0:11:34.240
<v Speaker 3>Good morning, I'm Nathan Hager, as we continue to follow

0:11:34.240 --> 0:11:37.720
<v Speaker 3>the mood swings and the rhetoric swings when it comes

0:11:37.760 --> 0:11:41.240
<v Speaker 3>to trade and tariff's, President Trump says, when it comes

0:11:41.240 --> 0:11:44.520
<v Speaker 3>to China, both sides are talking.

0:11:44.840 --> 0:11:45.400
<v Speaker 11>They had a.

0:11:45.320 --> 0:11:48.040
<v Speaker 15>Meeting this morning, so I can't tell you it doesn't

0:11:48.080 --> 0:11:51.360
<v Speaker 15>matter who they is. We may reveal it later, but

0:11:51.880 --> 0:11:55.360
<v Speaker 15>they had meetings this morning, and we've been meeting with China.

0:11:56.040 --> 0:11:58.440
<v Speaker 3>That was the President speaking at the White House yesterday.

0:11:58.480 --> 0:12:01.680
<v Speaker 3>But this morning, China's Farm our Ministry is reiterating that

0:12:01.880 --> 0:12:05.280
<v Speaker 3>no talks are underway, and a spokesman says the US

0:12:05.320 --> 0:12:08.640
<v Speaker 3>should stop misleading the public. For the very latest, we

0:12:08.640 --> 0:12:12.239
<v Speaker 3>were joined by Bloomberg Markets reporter Valerie Titel. So, Valerie,

0:12:12.640 --> 0:12:15.359
<v Speaker 3>are the US and China talking or not? Good morning?

0:12:15.679 --> 0:12:18.400
<v Speaker 1>Hey, that's a great question. I'll think anybody knows the answer.

0:12:18.480 --> 0:12:21.360
<v Speaker 1>Lots of contradictions all around. But I think the thing

0:12:21.400 --> 0:12:23.960
<v Speaker 1>that was most interesting this morning, Nathan, was some news

0:12:24.360 --> 0:12:27.880
<v Speaker 1>that sources we're telling Bloomberg that China is looking at

0:12:28.000 --> 0:12:32.440
<v Speaker 1>tariff exemptions for certain industries, one of those being the

0:12:32.480 --> 0:12:36.800
<v Speaker 1>medical industry, maybe some chip components some exemptions there. But

0:12:37.120 --> 0:12:39.680
<v Speaker 1>they also came out and contradicted that as well. We

0:12:39.720 --> 0:12:42.120
<v Speaker 1>had a China spokesman saying they're not familiar with these

0:12:42.160 --> 0:12:44.760
<v Speaker 1>reports on China tariff exemption. So a lot of back

0:12:44.800 --> 0:12:46.960
<v Speaker 1>and forth, a lot of uncertainty when it comes to

0:12:47.000 --> 0:12:50.440
<v Speaker 1>the picture on the US China trade situation. Though, I

0:12:50.480 --> 0:12:54.160
<v Speaker 1>have to say, Nathan, the equity market is looking through

0:12:54.240 --> 0:12:56.240
<v Speaker 1>a lot of this. The S and P five hundred

0:12:56.640 --> 0:12:58.800
<v Speaker 1>is in the green when it comes to the futures,

0:12:58.800 --> 0:13:00.600
<v Speaker 1>and if you look at how the move the week,

0:13:00.760 --> 0:13:03.559
<v Speaker 1>what that's been like. It's up nearly four and a

0:13:03.600 --> 0:13:07.280
<v Speaker 1>half percent for the S and P futures and look, Nathan,

0:13:07.320 --> 0:13:09.400
<v Speaker 1>that's going to be its second best week of the

0:13:09.480 --> 0:13:11.320
<v Speaker 1>year if this move hold. So it seems like there

0:13:11.360 --> 0:13:13.560
<v Speaker 1>is a lot of positivity when it comes to the

0:13:13.559 --> 0:13:16.720
<v Speaker 1>equity market and risk sentiment. Maybe the big takeaway from

0:13:16.720 --> 0:13:19.080
<v Speaker 1>this week is, yes, there's still a lot of moving parts,

0:13:19.120 --> 0:13:23.200
<v Speaker 1>but it seems like the trend for tariffs is downward

0:13:23.280 --> 0:13:26.080
<v Speaker 1>and we're headed towards de escalation on the trade warfront.

0:13:26.280 --> 0:13:28.760
<v Speaker 3>Yeah, there are so many moving parts. Whether or not

0:13:28.880 --> 0:13:31.880
<v Speaker 3>the US and China are talking, whether they're definitions of

0:13:32.120 --> 0:13:36.040
<v Speaker 3>talking are a little bit different. There's also some word

0:13:36.160 --> 0:13:39.160
<v Speaker 3>that China might not be just looking at exemptions for

0:13:39.240 --> 0:13:44.400
<v Speaker 3>some US imports, but also looking to stimulate, looking for

0:13:44.480 --> 0:13:46.400
<v Speaker 3>some stimulus for its economy as well.

0:13:46.559 --> 0:13:47.080
<v Speaker 7>Yeah, that's right.

0:13:47.120 --> 0:13:49.000
<v Speaker 1>We heard from the Pollitt Borrow this morning. They said

0:13:49.000 --> 0:13:53.600
<v Speaker 1>they're preparing emergency plans amid external shots, wanting to boost

0:13:53.960 --> 0:13:57.360
<v Speaker 1>internal demand, and looking up at setting up new financing

0:13:57.440 --> 0:14:00.199
<v Speaker 1>and policy tools. They also said they want to support

0:14:00.280 --> 0:14:02.800
<v Speaker 1>enterprises that are affected by tariffs. So it does seem

0:14:02.880 --> 0:14:05.520
<v Speaker 1>like the poll Up Bureau is ready to stand there

0:14:05.600 --> 0:14:10.280
<v Speaker 1>with some support to its industries that are hurt by tariffs.

0:14:10.520 --> 0:14:13.120
<v Speaker 1>You know, that did kind of boost the dollar. Hearing

0:14:13.160 --> 0:14:15.880
<v Speaker 1>this overnight, the Bloomberg Dollar indexes up three tens of

0:14:15.920 --> 0:14:19.520
<v Speaker 1>one percent. It seems like the move from overnight is

0:14:19.560 --> 0:14:23.280
<v Speaker 1>really just kind of unwinding the sell America trade, Nathan,

0:14:23.320 --> 0:14:26.120
<v Speaker 1>that kind of grafts our attention. On Monday, we're seeing

0:14:26.120 --> 0:14:31.040
<v Speaker 1>those currencies like the Japanese yen, the euro, and the

0:14:31.080 --> 0:14:34.200
<v Speaker 1>Swiss frank those that have acted like safe havens in

0:14:34.200 --> 0:14:37.520
<v Speaker 1>the last few weeks losing some ground in the front

0:14:37.520 --> 0:14:38.960
<v Speaker 1>of dollar strength this morning.

0:14:38.800 --> 0:14:41.040
<v Speaker 3>And of course we also heard from Treasury Secretary Scott

0:14:41.040 --> 0:14:43.960
<v Speaker 3>bess And talking about how talks with South Korea may

0:14:43.960 --> 0:14:46.960
<v Speaker 3>be going along a lot more quickly than even he expected.

0:14:47.040 --> 0:14:49.960
<v Speaker 3>And also some word this morning on potentially what the

0:14:50.000 --> 0:14:52.560
<v Speaker 3>framework of a US trade deal with India could look like.

0:14:52.800 --> 0:14:55.280
<v Speaker 1>Yeah, it seems like the Trump administration is eager to

0:14:55.400 --> 0:14:58.720
<v Speaker 1>announce one framework deal, you know, before Trump's one hundred

0:14:58.760 --> 0:15:02.280
<v Speaker 1>days next week. We had Bloomberg reporting just a few

0:15:02.360 --> 0:15:05.400
<v Speaker 1>hours ago that the US is seeking an India trade

0:15:05.400 --> 0:15:08.040
<v Speaker 1>deal on e commerce, crops and data storage. So maybe

0:15:08.080 --> 0:15:10.880
<v Speaker 1>these are our first glimpse on what these framework deals

0:15:11.160 --> 0:15:13.440
<v Speaker 1>are going to look like when it comes to the

0:15:13.560 --> 0:15:16.360
<v Speaker 1>nations that the US is negotiating with. But yeah, you're right,

0:15:16.360 --> 0:15:20.280
<v Speaker 1>we've had positive news on the India framework deal. Also

0:15:20.320 --> 0:15:24.960
<v Speaker 1>those comments from Treasury Secretary Scott Bessent yesterday talking about

0:15:25.000 --> 0:15:28.280
<v Speaker 1>imminent framework deal with South Korea. So things are looking

0:15:28.320 --> 0:15:30.880
<v Speaker 1>more positive in terms of the trade war and in

0:15:30.960 --> 0:15:33.040
<v Speaker 1>terms of de escalation. But I think the market is

0:15:33.080 --> 0:15:35.960
<v Speaker 1>really eager to see one of these deal frameworks on paper,

0:15:36.040 --> 0:15:38.320
<v Speaker 1>so maybe we can draw a bit more conclusions about

0:15:38.320 --> 0:15:41.160
<v Speaker 1>what the Trump administration is really trying to negotiate for

0:15:41.320 --> 0:15:42.640
<v Speaker 1>with these trading partners.

0:15:44.320 --> 0:15:47.280
<v Speaker 2>This is Bloomberg day Break, Your Morning podcast. On the

0:15:47.360 --> 0:15:50.840
<v Speaker 2>stories making news from Wall Street to Washington and beyond.

0:15:51.120 --> 0:15:53.520
<v Speaker 3>Look for us on your podcast feed by six am

0:15:53.560 --> 0:15:56.960
<v Speaker 3>Eastern each morning, on Apple, Spotify, or anywhere else you listen.

0:15:57.160 --> 0:15:59.920
<v Speaker 2>You can also listen live each morning starting at five

0:16:00.080 --> 0:16:02.760
<v Speaker 2>am Wall Street Time on Bloomberg eleven three to zero

0:16:02.760 --> 0:16:05.680
<v Speaker 2>in New York, Bloomberg in ninety nine to one in Washington,

0:16:05.720 --> 0:16:09.680
<v Speaker 2>Bloomberg ninety two nine in Boston, and nationwide on serious

0:16:09.880 --> 0:16:11.440
<v Speaker 2>XM Channel one twenty one.

0:16:11.840 --> 0:16:14.560
<v Speaker 3>Plus listen coast to coast on the Bloomberg Business app

0:16:14.600 --> 0:16:17.440
<v Speaker 3>now with Apple CarPlay and Android Atto interfaces.

0:16:17.640 --> 0:16:20.640
<v Speaker 2>And don't forget to subscribe to Bloomberg News Now. It's

0:16:20.680 --> 0:16:23.400
<v Speaker 2>the latest news whenever you want it in five minutes

0:16:23.520 --> 0:16:26.640
<v Speaker 2>or less. Search Bloomberg News Now on your favorite podcast

0:16:26.640 --> 0:16:28.920
<v Speaker 2>platform to stay informed all day long.

0:16:29.200 --> 0:16:32.320
<v Speaker 3>I'm Karen Moscow and I'm Nathan Hager. Join us again

0:16:32.320 --> 0:16:34.440
<v Speaker 3>tomorrow morning for all the news you need to start

0:16:34.480 --> 0:16:36.600
<v Speaker 3>your day right here on Bloomberg Day Bray