WEBVTT - Trump Unleashes Turmoil in Copper Markets; Search for Missing in Texas Continues

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we begin with the latest on the trade wars.

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<v Speaker 3>President Donald Trump is promising to press ahead with his

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<v Speaker 3>plans for aggressive tariffs. He says there will be no

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<v Speaker 3>extensions to the August first deadline for higher import rates.

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<v Speaker 3>That's after he said he was not one hundred percent

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<v Speaker 3>firm on the new date earlier this week.

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<v Speaker 4>It wasn't a change, it was August first. We don't

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<v Speaker 4>change very much. You know, every time we put out

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<v Speaker 4>a statement, they say he made a change. I didn't

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<v Speaker 4>make a change. Clarification maybe.

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<v Speaker 3>And at his latest cabinet meeting, heard live here on

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<v Speaker 3>Bloomberg Radio, President Trump said he will impose a fifty

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<v Speaker 3>percent tariff on copper products entering the US, and he

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<v Speaker 3>floated even higher rates on pharmaceuticals.

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<v Speaker 5>We're going to give people about a year a year

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<v Speaker 5>and a half to come in and after that they're

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<v Speaker 5>going to be tariffed. If they have to bring the

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<v Speaker 5>pharmaceuticals into the country, drugs and other things into the country,

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<v Speaker 5>they're going to be tariffed. At a very very high rate,

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<v Speaker 5>like two hundred percent.

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<v Speaker 3>Despite progress with the European Union, President Trump says he

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<v Speaker 3>may announce a new tariff rate on the block within

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<v Speaker 3>the next two days due to their taxes and fines

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<v Speaker 3>on US tech firms. The President says at least seven

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<v Speaker 3>countries could find out their trade status in letters later

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<v Speaker 3>this morning.

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<v Speaker 2>Nathan Meanwhile, Treasury Secretary's Scout Besson says the tariff hikes

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<v Speaker 2>are bringing in big money to the US. He also

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<v Speaker 2>spoke during the cabinet meeting.

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<v Speaker 6>We will take it in about one hundred billion dollars

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<v Speaker 6>in tariff income thus far this year, and that's with

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<v Speaker 6>the tariff the major tariff not having started toil the

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<v Speaker 6>second quarter, so we could expect that that could be

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<v Speaker 6>well over three hundred billion by the end of the year.

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<v Speaker 2>Treasury Secretary Scott Besson says a major jump in tariff

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<v Speaker 2>collection will start on August first, when new tariff rates

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<v Speaker 2>take effect.

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<v Speaker 3>Now, let's turned to the latest on the disaster recovery

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<v Speaker 3>in Central Texas. Karen search crews continue to slog through

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<v Speaker 3>thick mud and looking for any survivors of the catastrophic

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<v Speaker 3>flooding along the Guadalupe River, Texas Governor Greg Gabbott says

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<v Speaker 3>one hundred nine people are confirmed dead and at least

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<v Speaker 3>one hundred and sixty one may still be unaccounted for.

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<v Speaker 3>The Hearts of our fellow Texans are breaking every single

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<v Speaker 3>day because of what people of this community and the

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<v Speaker 3>surrounding area are going through. Governor Greg Gabbott toward the

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<v Speaker 3>disaster zone yesterday, Texas Game boardens say their crews have

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<v Speaker 3>searched more than twenty six river miles with helicopters, drones, boats,

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<v Speaker 3>and canine units. They say their team alone saved about

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<v Speaker 3>four hundred and forty four people and recovered thirty bodies.

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<v Speaker 3>President Trump plans to visit the area on Friday.

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<v Speaker 2>Nathan. The US will start charging interest again on student loans.

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<v Speaker 2>The Education Department says we'll begin collecting from an estimated

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<v Speaker 2>seven point seven million borrowers who've been in legal limbo

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<v Speaker 2>since a repayment plan created by former President Joe Biden

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<v Speaker 2>was blocked in court interest charges for people enrolled in

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<v Speaker 2>the Saving on a Valuable education or saved. We'll begin

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<v Speaker 2>on August first.

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<v Speaker 3>Turning to markets, now, Karen Apple is losing more talent.

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<v Speaker 3>Let's get the latest with Bloomberg's John Tucker. Who's leaving now, John.

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<v Speaker 7>Well, it's Apple's number two man, the chief operating officer,

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<v Speaker 7>Jeff Williams. He's retiring, but he's sixty two year old.

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<v Speaker 7>Williams was once considered a possible successor to the CEO,

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<v Speaker 7>Tim Cook. So b Cohn will replace Williams as CEO,

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<v Speaker 7>while Apple's design team that's going to shift to reporting

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<v Speaker 7>directly to the CEO Tim Cook. At Apple, Williams was

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<v Speaker 7>known for crafting a supply chain that can handle hundreds

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<v Speaker 7>of millions of devices a year while sourcing components from

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<v Speaker 7>thousands of suppliers around the world, a huge job. This

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<v Speaker 7>marks a major changing of the guard at an already

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<v Speaker 7>tumultuous time for the iPhone maker. Yesterday we told you

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<v Speaker 7>about the departure of Rooming Peng, a distinguished engineer and

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<v Speaker 7>manager in charge of the Apple Foundation Models team. He's

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<v Speaker 7>headed to Meta in New York. Ime, John Tucker, Bloomberg Radio.

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<v Speaker 2>All right, John, thank you. It was a disappointing first

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<v Speaker 2>day of prime sales, and that helped lead to a

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<v Speaker 2>drop of one point eight percent and Amazon shares momentum

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<v Speaker 2>commerce as sales fell almost fourteen percent in the first

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<v Speaker 2>four hours of the event compared to the same time

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<v Speaker 2>last year. Bloomberg Spenser Soaper says, there is one major

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<v Speaker 2>change this year.

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<v Speaker 8>It's a four day event this year, you know, as

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<v Speaker 8>opposed to two days. So it's still interesting to see

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<v Speaker 8>that out of the gate it was soft. But they've

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<v Speaker 8>spread this over four days now. So the question is

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<v Speaker 8>is there less of a sense of urgency among shoppers, like, Oh,

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<v Speaker 8>that's a good deal, I better buy it now before

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<v Speaker 8>we run out of time.

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<v Speaker 2>Bloomberg Spencer Soaper says Amazon launched Prime Day and twenty

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<v Speaker 2>fifteen to attract new subscribers who pay one hundred and

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<v Speaker 2>thirty nine dollars a year for shipping, discounts, video streaming,

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<v Speaker 2>and other benefits.

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<v Speaker 3>And another Tech news Karen OpenAI chief executive officer Sam

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<v Speaker 3>Altman says he has not yet spoken to Mark Zuckerberg

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<v Speaker 3>since the meta platform CEO poached some of his top engineers.

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<v Speaker 3>Altman talked about it with reporters at the Sun Valley

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<v Speaker 3>Conference Idaho.

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<v Speaker 9>I think we have.

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<v Speaker 10>An incredible I mean, obviously have an incredibly talented team,

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<v Speaker 10>and I think they really love what they're doing. Obviously,

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<v Speaker 10>some people will go to different places. There's a lot

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<v Speaker 10>of excitement, I guess we could say in the industry.

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<v Speaker 3>Open Ai chief executive Sam Altman says Meta offered people

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<v Speaker 3>as much as one hundred million dollars to jump ship.

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<v Speaker 3>He says he expects a meeting with Zuckerberg at the

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<v Speaker 3>Allen and Company gathering this week.

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<v Speaker 2>Nathan Sources tell Bloomberg that's SpaceX is discussing plans to

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<v Speaker 2>raise money and sell insider shares and a deal that

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<v Speaker 2>would value the company at four hundred billion dollars. Begin

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<v Speaker 2>more from Bloomberg Technology reporter Ed Ludlow.

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<v Speaker 11>Right now, the share price being discussed is two hundred

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<v Speaker 11>and eight dollars to two hundred and twelve dollars. There's

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<v Speaker 11>still a little way to go. It could change, but

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<v Speaker 11>it's quite a jump from the last valuation that we

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<v Speaker 11>reported of three hundred and fifty billion dollars. Part of

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<v Speaker 11>that reflects, of course, not just space exits position in

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<v Speaker 11>dominating commercial launch, but the Starling component as well.

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<v Speaker 2>And Bloomberg Technology reporter Ed Ludlow says this would mark

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<v Speaker 2>the largest valuation for a privately held US company.

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<v Speaker 3>And Keren we may have a big deal on the

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<v Speaker 3>way in the drug industry, The Financial Times is reporting

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<v Speaker 3>Merks closing in on a ten billion dollar acquisition of

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<v Speaker 3>respiratory drug maker Verona Pharma. The paper says Mirk would

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<v Speaker 3>pay one hundred and seven dollars per American Depository share

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<v Speaker 3>for the biotech company. That's a twenty three percent premium

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<v Speaker 3>to yesterday's closing price.

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<v Speaker 2>Time now for a look at some of the other

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<v Speaker 2>stories making news in New York and around the world.

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<v Speaker 2>And for that we're joined by Bloomberg's and Michael Barr. Michael,

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<v Speaker 2>good morning, Good.

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<v Speaker 12>Morning, Karen. After nine days, there is late word of

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<v Speaker 12>a settlement in the city workers' strike in Philadelphia.

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<v Speaker 9>Ask me.

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<v Speaker 12>District Council thirty three has been fighting for better pay. Meanwhile,

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<v Speaker 12>the strike may be over, but across the city at

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<v Speaker 12>many of the sixty plus trash drop off sites, the

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<v Speaker 12>mixture of rainy conditions over the long weekend and heat

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<v Speaker 12>left a massive smelly headache. Residents have to walk past

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<v Speaker 12>the mountains of garbage at night.

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<v Speaker 4>The trash is well real bid and this fission there

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<v Speaker 4>or of crabs in there is kind of like a

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<v Speaker 4>bed owner.

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<v Speaker 12>On top of sanitation workers. DC thirty three represents employees

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<v Speaker 12>across multiple city departments, including police dispatchers and maintenance workers

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<v Speaker 12>at Philadelphia International Airport. President Trump says that he is

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<v Speaker 12>not happy with the Russian president Vladimir Putin over the

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<v Speaker 12>ongoing strikes in Ukraine. This comes after reports that the

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<v Speaker 12>Trump administration, specifically the Defense Department, was going to pause

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<v Speaker 12>a weapon shipment to Ukraine, but the President refuted that

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<v Speaker 12>and said he wants to send more weapons to Ukraine.

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<v Speaker 12>Reporters asked the President about legislation champion by Republican Senator

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<v Speaker 12>Lindsey Graham to sanctioned Russia.

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<v Speaker 9>Further, it's an optional bill.

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<v Speaker 5>It's totally at my option.

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<v Speaker 4>They passed it totally at my option, and to terminate

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<v Speaker 4>totally at my option, and I'm looking at it very strongly.

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<v Speaker 12>It comes as Russia launched more tacks today on Ukraine.

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<v Speaker 12>Los Angeles Mayor Aaron Bass has joined legal action against

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<v Speaker 12>the Trump administration, calling the immigration raids in her city

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<v Speaker 12>unlawful and designed to instill fear. Pass said the mapped

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<v Speaker 12>ice agents grabbing people off the street could be anyone.

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<v Speaker 10>Aside from the fact that this is unconstitutional, how do

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<v Speaker 10>we know the difference between this and the kidnapping.

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<v Speaker 12>Global news twenty four hours a day and whenever you

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<v Speaker 12>want it with Bloomberg News Now. I'm Michael Barr, and

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<v Speaker 12>this is Bloomberg Karen.

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<v Speaker 2>All right, Michael Barr, thank you time now for the

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<v Speaker 2>Bloomberg Sports Update. Here's John stash Hour, John.

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<v Speaker 9>Good morning, Good morning, Karen.

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<v Speaker 1>After a day off, but followed playing each other, Mets

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<v Speaker 1>and the Yankees, who've both been slumping the past two weeks,

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<v Speaker 1>both had victories. Easy for the Yanks at the Stadium,

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<v Speaker 1>a five runs sixth inning with John Carlos standing in

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<v Speaker 1>a three run homer, Austin Wells a two run shot.

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<v Speaker 1>He's Howard in three straight games, and then in inning

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<v Speaker 1>later four more runs with Aaron Judge hitting home run

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<v Speaker 1>number thirty four.

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<v Speaker 9>Yanks all loibil the Mariners ten to three.

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<v Speaker 1>Needed the win because Toronto beat the White Sox six

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<v Speaker 1>to one. Of the Blue Jays have won ten games

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<v Speaker 1>in a row, they stay three and a half games ahead.

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<v Speaker 1>A dramatic win for the Mets, their biggest comeback of

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<v Speaker 1>the season. In Baltimore, they were down six to two

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<v Speaker 1>in the eighth inning, two run homers by Francisco Lindor

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<v Speaker 1>and Pete Alonzo to tie the game, and then Juan

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<v Speaker 1>Soto with a game when he hit tenth inning to

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<v Speaker 1>beat the Oriel seven to six. Of the Metster back

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<v Speaker 1>into a tie for first with the Phillies, who lost

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<v Speaker 1>to the Giants four to three in San Francisco. Patrick

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<v Speaker 1>Bailey wanted on a walk off inside the park home

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<v Speaker 1>run tenth inning Red Sox over the Rockies ten to two.

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<v Speaker 1>The Nationals under new manager Miguel Cairo, lost in Saint

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<v Speaker 1>Louis four to two. The Dodgers lost their fifth in

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<v Speaker 1>a row three to one at Milwaukee. Mike Brown introduced

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<v Speaker 1>as the knicks thirty second coach in team history and

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<v Speaker 1>grateful to get the job.

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<v Speaker 13>Talk about historic franchise, Madison Square Garden Tychonic are fans

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<v Speaker 13>that are the most knowledgeable and passionate probably in all

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<v Speaker 13>of sports.

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<v Speaker 1>A lot of those fans were wondering why the Knicks

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<v Speaker 1>fired Toime Thibodeau after the most successful season a twenty

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<v Speaker 1>five years. They'll be rooty for Brown to take the

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<v Speaker 1>team a little bit further in the playoffs and wimbled.

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<v Speaker 1>Then they'll wrap up the quarterfinals.

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<v Speaker 12>Today.

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<v Speaker 1>Jonnick Center the Top Scene taking on the American Ben Shelton,

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<v Speaker 1>John Stasheward, Bloomberg Sports count Ethan coast to coast on

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<v Speaker 1>Bloomberg Radio nationwide on Serious Exam and around the world

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<v Speaker 1>on Bloomberg dot Com and The Bloomberg Business Apple.

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<v Speaker 9>This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

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<v Speaker 3>President Donald Trump appears to be holding firm now to

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<v Speaker 3>his new deadline for countries around the world to reach

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<v Speaker 3>trade deals with the US.

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<v Speaker 4>August first, they pay, and everybody pays. Everybody has to pay.

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<v Speaker 4>And the incentive is that they have the right to

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<v Speaker 4>deal in the United States. If they don't want to,

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<v Speaker 4>they don't have to pay, and they don't have to deal.

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<v Speaker 11>Here.

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<v Speaker 3>I was the President speaking in a cabinet meeting heard

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<v Speaker 3>live on Bloomberg Radio this morning. We're joined by Bloomberg

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<v Speaker 3>News Senior editor Bill Ferries. Of course, Bill, just a

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<v Speaker 3>couple of days ago, the President said he wasn't one

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<v Speaker 3>hundred percent firm on the August first deadline. Now it

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<v Speaker 3>sounds like things may be firming up.

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<v Speaker 9>Good morning, Good morning, Nathan.

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<v Speaker 14>Yeah, I mean it's basically a three week additional extension, right,

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<v Speaker 14>so a lot can happen in that time. I mean,

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<v Speaker 14>I think three weeks in the current universes is a

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<v Speaker 14>very long time for further negotiations and other deals to

0:11:34.160 --> 0:11:36.840
<v Speaker 14>be made. I mean, this all goes back to April. Now,

0:11:36.880 --> 0:11:40.120
<v Speaker 14>April second was Liberation Day. That was when tarifs were

0:11:40.280 --> 0:11:43.640
<v Speaker 14>coming into place or announced, and then it was kicked

0:11:43.640 --> 0:11:46.439
<v Speaker 14>to July ninth. Well, we're at July ninth, and now

0:11:46.480 --> 0:11:50.080
<v Speaker 14>it's August first. So the markets, I think yesterday we're

0:11:50.080 --> 0:11:53.800
<v Speaker 14>betting that maybe Donald Trump wouldn't hold too firm on

0:11:53.880 --> 0:11:55.720
<v Speaker 14>that deadline, and I think he woke up to that

0:11:55.800 --> 0:11:59.240
<v Speaker 14>news on Tuesday and wanted to squash it. But I

0:11:59.240 --> 0:12:02.079
<v Speaker 14>think we'll only know for sure when it's August first.

0:12:02.480 --> 0:12:04.640
<v Speaker 3>On the other hand, we did see a pretty sharp

0:12:04.679 --> 0:12:07.719
<v Speaker 3>reaction in the copper market when the President said he

0:12:07.800 --> 0:12:12.560
<v Speaker 3>could float fifty percent duties on copper products entering the US.

0:12:12.600 --> 0:12:15.200
<v Speaker 9>What could that mean for that market?

0:12:16.679 --> 0:12:20.280
<v Speaker 14>Well, it's interesting because the President first talked about tariffs

0:12:20.280 --> 0:12:23.440
<v Speaker 14>on copper back in February, and ever since then, you've

0:12:23.480 --> 0:12:28.199
<v Speaker 14>seen traders directing more copper into the US into inventory,

0:12:29.000 --> 0:12:33.000
<v Speaker 14>really stockpiling that the US still needs I think about

0:12:33.000 --> 0:12:37.800
<v Speaker 14>forty percent of its copper demand to be imported, so

0:12:38.080 --> 0:12:40.319
<v Speaker 14>it's it's not going to be self sufficient for a

0:12:40.440 --> 0:12:42.880
<v Speaker 14>very long time. And I mean we're talking about you know,

0:12:43.000 --> 0:12:47.320
<v Speaker 14>everything from you know, car batteries to just basic industry

0:12:47.400 --> 0:12:51.560
<v Speaker 14>that needs needs copper to function. So there's going to

0:12:51.600 --> 0:12:55.920
<v Speaker 14>continue to be a dependence on imports for that for

0:12:56.040 --> 0:12:59.640
<v Speaker 14>probably the you know, several years ahead. So I think

0:13:00.320 --> 0:13:05.520
<v Speaker 14>I think that's a potential inflation early inflation indicator there

0:13:05.600 --> 0:13:09.440
<v Speaker 14>if we do hit that fifty percent tariff in August.

0:13:09.360 --> 0:13:11.559
<v Speaker 3>Now on top of the twenty five percent tariffs you've

0:13:11.559 --> 0:13:13.480
<v Speaker 3>already heard about for steal and.

0:13:13.520 --> 0:13:14.840
<v Speaker 9>Aluminum as well.

0:13:15.000 --> 0:13:18.439
<v Speaker 3>And then there's this talk of up to two hundred

0:13:18.480 --> 0:13:22.400
<v Speaker 3>percent on drug companies if they don't onshore into the

0:13:22.520 --> 0:13:24.000
<v Speaker 3>US in the next year or so.

0:13:24.200 --> 0:13:25.439
<v Speaker 9>How serious to take that?

0:13:27.400 --> 0:13:30.199
<v Speaker 14>Yeah, I mean it's something pharmaceuticals has been a focus

0:13:30.600 --> 0:13:33.040
<v Speaker 14>for this president. He wants to see more of the

0:13:33.120 --> 0:13:38.360
<v Speaker 14>pharma industry back inside the United States. Two hundred percent

0:13:38.400 --> 0:13:40.840
<v Speaker 14>would be huge, of course, if you know, particularly if

0:13:40.880 --> 0:13:43.640
<v Speaker 14>it's the you know, the drug that you need for

0:13:44.480 --> 0:13:48.040
<v Speaker 14>your particular illness, that would be a huge cost. So

0:13:48.080 --> 0:13:50.240
<v Speaker 14>he did, he did put out there the idea that

0:13:50.600 --> 0:13:52.640
<v Speaker 14>it could take a year, a year and a half

0:13:53.160 --> 0:13:55.960
<v Speaker 14>or so before that would go into effect, he'd want

0:13:56.000 --> 0:14:00.160
<v Speaker 14>to see the pharma companies building their production facilities in

0:14:00.200 --> 0:14:02.679
<v Speaker 14>the US shifting production over here.

0:14:03.280 --> 0:14:04.920
<v Speaker 9>So there's a little longer of a.

0:14:05.000 --> 0:14:07.160
<v Speaker 14>Runway on that kind of a change, but it would

0:14:07.160 --> 0:14:09.360
<v Speaker 14>certainly be a major disruption in the market.

0:14:09.520 --> 0:14:11.200
<v Speaker 3>I mean, are those the kind of things though that

0:14:11.280 --> 0:14:14.920
<v Speaker 3>could affect the ongoing country by country trade negotiations that

0:14:14.960 --> 0:14:18.000
<v Speaker 3>are happening. When you think about the pharmaceutical industry in particular,

0:14:18.080 --> 0:14:21.040
<v Speaker 3>a lot of those companies are based in the European Union,

0:14:21.320 --> 0:14:24.520
<v Speaker 3>and there's supposed to be some kind of announcement about

0:14:24.520 --> 0:14:26.840
<v Speaker 3>the EU. Were thinking this week, still, isn't there.

0:14:28.080 --> 0:14:30.880
<v Speaker 14>Yeah, the administration has said, you know, maybe within the

0:14:30.880 --> 0:14:33.360
<v Speaker 14>next two days we'd have some sort of a framework

0:14:33.440 --> 0:14:36.200
<v Speaker 14>deal with the EU. The EU, of course, was facing

0:14:36.280 --> 0:14:38.960
<v Speaker 14>up to a fifty percent tariff. What we know from

0:14:39.000 --> 0:14:42.320
<v Speaker 14>our reporting is that negotiators have really focused on some

0:14:42.480 --> 0:14:45.560
<v Speaker 14>key sectors that they want to get carveouts for. So

0:14:45.600 --> 0:14:49.720
<v Speaker 14>that would include things like aerospace with Airbus, it would

0:14:49.720 --> 0:14:55.560
<v Speaker 14>include German automakers like BMW and Mercedes who have factories

0:14:55.600 --> 0:14:58.400
<v Speaker 14>in the United States, And it would include things like

0:14:58.440 --> 0:15:02.760
<v Speaker 14>alcohol shipments on the EU. So it's that's you know,

0:15:02.800 --> 0:15:05.320
<v Speaker 14>that just gives you a taste. I think of the

0:15:05.440 --> 0:15:08.520
<v Speaker 14>number of exceptions that might be coming through when we

0:15:08.560 --> 0:15:10.480
<v Speaker 14>announce a deal, but there will be quite a few

0:15:10.520 --> 0:15:13.320
<v Speaker 14>products if it stays at the current levels that get

0:15:13.400 --> 0:15:14.840
<v Speaker 14>hit with a fifty percent tariff.

0:15:15.240 --> 0:15:17.160
<v Speaker 3>So in our last thirty seconds bill, what should we

0:15:17.200 --> 0:15:19.000
<v Speaker 3>be looking for in the next few days here? I

0:15:19.000 --> 0:15:22.120
<v Speaker 3>think we heard the President say of several countries could

0:15:22.200 --> 0:15:24.160
<v Speaker 3>get letters like we've seen this week.

0:15:24.560 --> 0:15:27.720
<v Speaker 14>Later on this morning, Yeah, they said up to a

0:15:27.760 --> 0:15:30.320
<v Speaker 14>dozen more countries could be getting letters. I think you

0:15:30.320 --> 0:15:32.720
<v Speaker 14>know you mentioned the EU. I think we're also looking

0:15:32.720 --> 0:15:35.920
<v Speaker 14>to see what the status is with India. That has

0:15:36.000 --> 0:15:39.400
<v Speaker 14>been a priority for the administration, and that's one that

0:15:39.400 --> 0:15:41.520
<v Speaker 14>we haven't heard a lot about. So that's that's the

0:15:41.520 --> 0:15:42.520
<v Speaker 14>next one on my list.

0:15:42.800 --> 0:15:46.200
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