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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm John Tucker. Here

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Speaker 2: are these stories we're following today.

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Speaker 3: Stocks around the world have recovered their losses from last

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Speaker 3: month's Rose Garden tariff announcement from President Trump. That's after

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Speaker 3: the US and China agreed to roll back triple digit

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Speaker 3: tariffs against each other for ninety days. In White House

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Speaker 3: remarks heard on Bloomberg Radio, the President called it a

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Speaker 3: total reset of the US China relationship.

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Speaker 4: The relationship is very good. We're not looking to hurt China.

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Speaker 4: China was being hurt very badly, and they were closing

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Speaker 4: up factories. They were having a lot of unrest.

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Speaker 3: But President Trump did not mention that the deal meant

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Speaker 3: nearly all of China's demands, including suspension of the so

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Speaker 3: called reciprocal terariff rate of thirty four percent and a

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Speaker 3: point person for further talks still. Caroline Freud, a non

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Speaker 3: resident Senior Fellow at the Peterson Institute, says both sides

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Speaker 3: had good reas to de escalate.

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Speaker 5: It was really unsustainable for both countries for different reasons.

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Speaker 5: It was unsustainable for the US because there's a lot

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Speaker 5: of things we need from China, and it was unsustainable

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Speaker 5: for China because they need to manufacture things and sell them,

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Speaker 5: and the US is a huge market, so both sides

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Speaker 5: really had a lot of incentive to make a deal.

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Speaker 3: It's Caroline Freud of the Peterson Institute, and China may

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Speaker 3: have made at least one concession to the US. Sources

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Speaker 3: tel Bloomberg News, China has lifted a month long ban

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Speaker 3: on airlines taking deliveries of Boeing planes, and of.

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Speaker 2: Course investors were cheering the US China trade agreement, the

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Speaker 2: SMP five hundred surging three and a quarter percent, well

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Speaker 2: that n asdak rallied four and a third percent, as

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Speaker 2: some Wall Street titans also applauding the easing of tensions.

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Speaker 2: We caught up with Citadel founder Ken Griffin.

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Speaker 6: To see the US Secretary Treasury come to a Meetia

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Speaker 6: the minds with the Chinese leadership. Was an important moment

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Speaker 6: between our two nations. And I'd like to take this

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Speaker 6: not as a as a moment in time or reflect

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Speaker 6: upon the fragility of what's been accomplished, but rather to

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Speaker 6: focus on the fact that we have opened the doors

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Speaker 6: to a negotiation.

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Speaker 4: And I do believe that the.

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Speaker 6: Actions of both parties makes it clear that we want

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Speaker 6: to find common ground.

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Speaker 2: Citadel founder Ken Griffin making the comments in an interview

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Speaker 2: with Bloomberg Shanali Bassik for an episode of the upcoming

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Speaker 2: series Bullish for Bloomberg Originals of the Four Seasons in Miami.

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Speaker 3: Well John President Trump is in Saudi Arabia. He has

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Speaker 3: arrived for the start of a four day tour of

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Speaker 3: the Middle East, greeted personally by Crown Prince Mohammed Ben

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Speaker 3: Salmon and the tarmac. The President's Treasury Secretary Scott Bessant

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Speaker 3: is also in the Kingdom, attending a Saudi US investment

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Speaker 3: for him in Rio, and Besson talked about the chances

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Speaker 3: of a trade agreement with the European Union.

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Speaker 2: May have a collective action problem that the Italians want

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Speaker 2: something than the French, but I'm sure at the end

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Speaker 2: of the day we will reach a satisfactory conclusion.

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Speaker 3: And Treasury Secretary Scott Besson added the US has had

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Speaker 3: very productive discussions with Japan, anti priced conversations with Indonesia

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Speaker 3: as well as a quote very good proposal from Taiwan.

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Speaker 2: And the easing of global trade tensions has on Wall

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Speaker 2: Street firm boosting its price target for US stocks. Let's

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Speaker 2: get that story from Bloomberg's Gena Cervetti.

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Speaker 7: Goldman Sachs Group says the buy America trade may be back.

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Speaker 7: The firm now sees the SMP five hundred index reaching

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Speaker 7: sixty five hundred in the next twelve months. That's three

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Speaker 7: hundred points higher than its previous estimate and a gain

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Speaker 7: of about eleven percent from yesterday's close. Goldman had cut

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Speaker 7: its SMP five hundred forecasts twice in March, citing higher

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Speaker 7: recession risk and tariff related uncertainty. The firm says, while

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Speaker 7: such concerns have eased with the latest truce between the

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Speaker 7: US and China, the broader earnings outlook still remains uneven.

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Speaker 7: In New York, Gena Cervetti bloom Radio.

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Speaker 4: All right, Gina, thank you.

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Speaker 3: As investors remain focused on the latest trade developments, they'll

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Speaker 3: also have a key economic report to digest later this morning,

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Speaker 3: when we get the consumer price index from the month

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Speaker 3: of April.

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Speaker 4: Let's get a preview now from Bloomberg's Michael McKee.

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Speaker 8: This is the first inflation report that may offer evidence

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Speaker 8: that Trump's import taxes are raising prices. The consensus is

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Speaker 8: for a fairly strong increase in headline and core prices,

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Speaker 8: even as gasoline fell in April. Autos and some consumer

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Speaker 8: goods may move higher, although the biggest increases won't come

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Speaker 8: until May or June. Economists will still be watching the

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Speaker 8: traditional inflation sources as well, particularly housing, to see if

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Speaker 8: non Trump inflation is making progress towards the FEDS two

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Speaker 8: percent target. Michael McKee, Bloomberg Radio, All.

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Speaker 2: Right, thanks Mike. Staying in Washington, Republicans on the House

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Speaker 2: Tax Committee, they've released details of Donald Trump's multi trillion

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Speaker 2: dollar tax cut bill. That story from Bloomberg Sammy Morris.

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Speaker 9: The legislation aims to cut taxes by more than four

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Speaker 9: trillion dollars and reduce spending by at least one and

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Speaker 9: a half trillion over a decade. It also raises the

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Speaker 9: state and local tax cap to thirty thousand dollars for individuals.

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Speaker 9: Former North Carolina Republican Congressman Pat McHenry wonders if that

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Speaker 9: will be enough for some lawmakers.

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Speaker 3: The question of whether or not thirty thousand is going

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Speaker 3: to be sufficient for them, We're going to see.

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Speaker 10: We're going to see in a.

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Speaker 6: Very public way, these are the most public Republicans in

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Speaker 6: the House representats.

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Speaker 9: The legislation also proposes raising the debt limit by four

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Speaker 9: trillion dollars. It does not include President Trump's proposal for

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Speaker 9: a millionaire tax bracket. In Washington, Amy Morris Bloomberg Radio, all.

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Speaker 4: Right, Amy, thank you.

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Speaker 3: In the US appears to be on track for a

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Speaker 3: very bad tourism year. According to new data from the

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Speaker 3: World Travel and Tourism Council, the US is set to

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Speaker 3: lose twelve and a half billion dollars in travel revenue

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Speaker 3: in twenty twenty five. Visitor spending is estimated to fall

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Speaker 3: under one hundred and sixty nine billion dollars by year's end.

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Speaker 3: These numbers represented decline of around seven percent, a year

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Speaker 3: over year decline of twenty two percent since tourism peaked

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Speaker 3: in the US in twenty nineteen. The decline is attributed

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Speaker 3: to Lady lingering, COVID era requirements, a strong dollar, and

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Speaker 3: a shift in people's views due to the current administration's

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Speaker 3: America First rhetoric and policy.

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Speaker 2: All right, thanks, Nathan, it's time now for it. I

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Speaker 2: look at some of the other stories making news in

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Speaker 2: New York and around the world. After that, we're joined

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Speaker 2: by Bloombergs Michael Barr Michael, good morning.

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Speaker 11: Good morning John. It is the start of day two

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Speaker 11: of testimony in the sex trafficking and racketeering trial of

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Speaker 11: music mogul Sean Diddy Combs. Yesterday, prosecutors played the CNN

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Speaker 11: video for the jury. The surveillance video shows Combs chasing

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Speaker 11: then girlfriend Cassie Ventur down a hotel hallway, knocking her

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Speaker 11: to the floor, and kicking her. During opening statements, prosecutors

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Speaker 11: say it's what happened after Ventur tried to escape one

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Speaker 11: of the sex performances. The defense claiming the video shows

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Speaker 11: a fight over a cell phone. His own lawyers acknowledged

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Speaker 11: Combs was violent at times, arguing that does not make

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Speaker 11: Combs a sex trafficker or part of a rocketeering conspiracy.

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Speaker 11: Attorney Arriva Martin talked about the challenge for the government.

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Speaker 5: We know a lot of people don't understand why victims

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Speaker 5: of sex trafficking don't come forward sooner and faster.

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Speaker 8: Why don't they go to the police. Why don't they

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Speaker 8: report this to friends and to others. So that's going

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Speaker 8: to be the question these jurors have.

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Speaker 2: To grapple with today.

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Speaker 11: Cassie Ventur is expected to take the witness stand. Hamas

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Speaker 11: has freed the last living American citizen held hostage in Gaza, Eden, Alexander.

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Speaker 11: Alexander met up with his younger brother in a joyous celebration.

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Speaker 3: Is much.

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Speaker 11: Alexander was captured during a Hamas attack in October twenty

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Speaker 11: twenty three. Former President Joe Biden is being evaluated after

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Speaker 11: a small nodule was discovered on his prostate. A spokesman

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Speaker 11: told The New York Times mister Biden, who was eighty two,

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Speaker 11: spent last Friday at a hostel Bittle in Philadelphia, says

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Speaker 11: the nodule required further evaluation. Two New York Republican lawmakers,

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Speaker 11: Mike Lawler and Nick Lolota, vowed to block their party's

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Speaker 11: tax legislation unless the proposed thirty thousand limit on the

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Speaker 11: federal income tax deduction for state and local taxes is increased. Lawler,

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Speaker 11: speaking to Bloomberg, called the proposed salt limit woefully inadequate.

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Speaker 10: When the Tax Cousin Jobs Act expires at the end

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Speaker 10: of this year, salt comes back unlimited, and so in

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Speaker 10: order for there to be a tax bill that would

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Speaker 10: actually put a cap in place, it has to adequately

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Speaker 10: address the concerns of my constituents.

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Speaker 11: Other Republicans, including Andrew Garabino, Elise Stefanik, and Young Kim

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Speaker 11: have also rejected the salt cap Global News twenty four

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Speaker 11: hours a day and whenever you want it with the

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Speaker 11: Bloomberg News Now, Michael Barr, this is Bloomberg.

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Speaker 2: John, all right, Michael, thank you. Yeah, that brings us

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Speaker 2: to five. He had on Wall Street Time now for

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Speaker 2: the Bloomberg Sports Up Day. Empathetic and Chris John stash here, John, good.

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Speaker 4: Morning, Good morning John.

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Speaker 12: The Knicks, in Game four with the Celtics at the Garden,

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Speaker 12: found themselves trailing for the fourth straight time in the series.

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Speaker 12: Boston had a fourteen point lead in the third quarter.

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Speaker 12: Jalen Brunson led the Knicks back.

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Speaker 2: Brunson, still looking falling Away puts it up.

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Speaker 4: That skirt tail and Brunson does it again. It's a

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Speaker 4: two point.

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Speaker 11: Game, time out.

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Speaker 12: Boston drives into the paint, pulls back, looks.

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Speaker 4: Up at the shot clock. He's gotta get it off.

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Speaker 4: Falling Away, puts it up, puts it in. Brunson. Parage

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Speaker 4: here of the third quarter of.

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Speaker 12: The game is time on ESPN The Knicks won that

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Speaker 12: third quarter thirty seven to twenty three Bruns and had

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Speaker 12: more than half those Nick points. They went on to

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Speaker 12: win one twenty one point thirteen, now have a three

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Speaker 12: games to one lead runs and finished with thirty nine points. Connel,

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Speaker 12: Anthony Towns and Mchal Bridges both at in twenty three.

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Speaker 12: Jason Tatum was tremendous in leading the Celtics. He scored

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Speaker 12: forty two points. He made seven three pointers, and then

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Speaker 12: Tatum's night, and very possibly his season, came to an

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Speaker 12: end with three minutes left a non contact lower leg injury.

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Speaker 12: He was seen later in a wheelchair with his head

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Speaker 12: in his hands. Heata will have an MRI today, but

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Speaker 12: the Celtics may very well have to try and make

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Speaker 12: the series come back without their star player. Golden State

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Speaker 12: has been without its best player and without Steph Curry.

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Speaker 12: The Warriors lost for a third straight time Minnesota one

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Speaker 12: one seventeen to one ten. The te Wolves also up

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Speaker 12: three to one. The Dallas Mavericks, who took considerable heat

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Speaker 12: for trading Luca Donzon's, got some good news winning the

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Speaker 12: draft lottery. They had a less than two percent chance.

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Speaker 4: The MAVs will now be.

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Speaker 12: Expected to draft Dukes Cooper Flag Stanley Cup playff home

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Speaker 12: wins for Carolina and Edmonton, both up three to one.

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Speaker 12: Yankees in Seattle had four home runs, two by Trent Grisham.

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Speaker 12: They won eleven to five, but the Yanks suffered where

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Speaker 12: looks like a serious injury to Oswaldo Cabrera hurt his

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Speaker 12: ankles sliding at home. He was taking off the field

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Speaker 12: in an ambulance. Mets scored by the night through the

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Speaker 12: Pirates four to three. Nationals lost in Atlanta four to three,

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Speaker 12: and the Red Socks lost in Detroit fourteen to two.

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Speaker 12: John Staneshawer Bloomberg Sports, John and.

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Speaker 1: Naple Coast to Coast on Bloomberg Radio nationwide on Serious

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Speaker 1: Exam and around the world on Bloomberg dot Com and

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Speaker 1: the Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 4: Good morning, I'm Nathan Hager.

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Speaker 3: The US says it is now in a good position

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Speaker 3: to negotiate with China after last weekend's trade talks in Geneva,

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Speaker 3: but the rollback of one hundred and forty five percent

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Speaker 3: tariffs on China down to thirty may validate Chinese President

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Speaker 3: Xi Jinpingk's decision to hold firm in the standoff, and

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Speaker 3: now President she says, China stands ready to defend multilateral trade.

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Speaker 2: May there are.

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Speaker 4: No winners in tariff wars or trade wars.

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Speaker 13: Bullying or hegeminism only leads to self isolation.

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Speaker 3: That was Chinese President Chijin Pink speaking through an interpreter

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Speaker 3: in an economic forum with Latin American states in Beijing

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Speaker 3: joining US now. Bloomberg News Senior editor Bill Ferries, Bill,

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Speaker 3: good morning. I know we're only a day away from

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Speaker 3: the announcement of the outcome of the Geneva talks, but

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Speaker 3: is it too soon to say who's got an upper

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Speaker 3: hand now, the US or China?

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Speaker 4: Good morning, Good morning, Nathan.

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Speaker 13: Yeah, it does seem that China has really gotten a

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Speaker 13: lot of its key demands met so far. I mean,

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Speaker 13: when these very high US tariffs went in place one

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Speaker 13: hundred and forty five percent on Chinese imports, you heard

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Speaker 13: from Trump administration officials saying that China couldn't afford to

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Speaker 13: hold out, that they needed the US market more than

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Speaker 13: the US needed the Chinese market, and that eventually, you

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Speaker 13: know that China wanted to have a meeting and would

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Speaker 13: call a meeting. In the end, it looked like both

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Speaker 13: sides were feeling some economic pain. But the end result

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Speaker 13: from this weekend really does seem to be we're back

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Speaker 13: to where we were in late March early April with

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Speaker 13: the US thirty percent tariffs and lower Chinese ten percent tariffs.

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Speaker 13: It's not clear that there's any agreement on market access.

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Speaker 13: It's not clear that there's very really, very much achieved

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Speaker 13: beyond a very ultuous past six or seven weeks. And

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Speaker 13: what Scott Besstt was saying today in Saudi Arabia was

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Speaker 13: that they have opened this channel of formal talks between

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Speaker 13: the US and China. That's not necessarily something you needed

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Speaker 13: the tariffs to do, but it is the result of

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Speaker 13: what's been happening over the last several weeks.

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Speaker 3: And to your point, Bill, the Treasury Secretary says that

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Speaker 3: the first Trump trade deal with China gives them a

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Speaker 3: very good framework to work with to try to get

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Speaker 3: a newer deal rebalancing of trade. But is that tougher

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Speaker 3: now to get a rebalancing since China's held out the

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Speaker 3: way it has.

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Speaker 13: Yeah, I think China is going to see you know,

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Speaker 13: they're in this ninety day period where they're supposed to

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Speaker 13: make more progress on limiting the export of products that

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Speaker 13: go into making fentanyl. They're looking to see if there's

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Speaker 13: agreements they can make in certain sectors. But I think,

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Speaker 13: you know, China never fully bought into that that original

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Speaker 13: trade deal that required them to buy two hundred billion

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Speaker 13: dollars in US goods. I think it's going to be

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Speaker 13: hard to increase that kind of an agreement when you

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Speaker 13: haven't met the terms of the initial agreement. So it's

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Speaker 13: not clear what the next ninety days will bring. There

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Speaker 13: will be more talks, there might be progress on fentanyl.

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Speaker 13: Part of the thirty percent tariff on Chinese goods is

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Speaker 13: this twenty percent that's supposed to be based on progress

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Speaker 13: on fentanyl, So there is a chance that could come down.

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Speaker 13: One thing Scott Bessett made clear is that he sees

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Speaker 13: ten percent as a floor going forward, and that's still

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Speaker 13: significantly higher than the tariff's Chinese goods faced when the

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Speaker 13: administration took office in January.

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Speaker 3: And now, as you mentioned, the focus does turn to

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Speaker 3: the Middle East. It's not just Treasury Secretary Besant who's there,

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Speaker 3: but President Trump has arrived. He's getting a tour with

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Speaker 3: the Saudi Crown. Prints what kind of outcomes can we

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Speaker 3: expect from the President's.

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Speaker 4: Visit to the Middle East. Got about a minute left.

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Speaker 13: I would expect to get some details about and more

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Speaker 13: broadly Middle Eastern investments in the US. At one point,

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Speaker 13: you know, Donald Trump was asking for more than a

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Speaker 13: trillion dollars in investments to come in from Saudi Arabia

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Speaker 13: in the Middle East. I don't know if we'll get

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Speaker 13: all of that, but that's going to certainly be drumming up.

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Speaker 13: Business is going to be a big part of this.

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Speaker 13: There is going to be some questions about this ceasefire

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Speaker 13: with the Hooties and whether the Red Sea will really

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Speaker 13: reopen to shipping. It hasn't happened yet, and I don't

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Speaker 13: think there's a lot of expectations that that's on the horizon,

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Speaker 13: but it's certainly going to be. I expect we'll see

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Speaker 13: a lot of a lot of big announcements from the

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Speaker 13: President on trade and investment.

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