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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 Karen Moscow. Here

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

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Speaker 3: Karin, we begin with the global trade war. European Union

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Speaker 3: officials are set to meet in the coming days to

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Speaker 3: discuss how to respond to a possible no deal trade

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Speaker 3: scenario with President Trump. The move comes as the US

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Speaker 3: is said to be seeking tariffs on EU goods higher

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Speaker 3: than ten percent with limited exceptions. We get more from

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Speaker 3: Bloomberg's Oliver Crook in Berlin.

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Speaker 4: But at the end of the day, I think that

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Speaker 4: their frustration, their difficulty is that it is going to

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Speaker 4: come down to Trump at the end of the day,

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Speaker 4: how he's feeling very close to the negotiations. I was

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Speaker 4: at the G twenty just last week, you know, and

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Speaker 4: I got a feeling from some of the finance ministers,

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Speaker 4: many of them didn't want to speak on the record

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Speaker 4: on this, but saying that basically they did feel that

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Speaker 4: the United States was softening a little bit, potentially because

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Speaker 4: they are taking on a sort of trade war against

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Speaker 4: everybody all at once. But there was also this sentiment

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Speaker 4: out up there that in the long term, this negotiation,

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Speaker 4: whatever happens over the next couple of weeks is probably

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Speaker 4: not the end of the discussion in terms of tariffs

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Speaker 4: with the United States. So potentially for many of these

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Speaker 4: countries looking to build coalitions outside of Europe, not just

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Speaker 4: the EU, something bigger in order to potentially take on

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Speaker 4: the United States and in more confrontational matter, because who

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Speaker 4: knows what the next few years will hold.

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Speaker 3: Bloomberg's Oliver Crooks says President Trump wrote to the EU

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Speaker 3: earlier in the month, warning the block would face a

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Speaker 3: thirty percent tariff on most of its exports on August first.

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Speaker 2: Nathan Commerce Secretary Howard Lutnek says he's confident to deal

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Speaker 2: with the EU can get done, but he's sticking with

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Speaker 2: the August first deadline for higher tariff rates on major

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Speaker 2: trading partners and a baseline of ten percent for everyone else.

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Speaker 5: The world is paying ten percent right now, and China's

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Speaker 5: paying thirty percent. Ten percent is definitely going to stay.

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Speaker 5: The small countries are likely to be ten percent, but

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Speaker 5: the bigger countries are likely to pay higher. That's just

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Speaker 5: the way it's going to be, because we can't have

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Speaker 5: these one trillion dollars trade deficit.

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Speaker 2: Commerce Secretary Howard Ludnik spoke on CBS's Face the Nation

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Speaker 2: Heard every Sunday on Bloomberg Radio and Karen.

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Speaker 3: President Trump's pushing back on a report that Treasury Secretary

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Speaker 3: Scott Besstt warned that ousting FED chair J Powell would

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Speaker 3: be bad for markets. In a post on truth Social,

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Speaker 3: the President called the Wall Street Journal quote typically untruthful.

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Speaker 3: He went on to say he knows better than anyone

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Speaker 3: what's good for markets, touting recent record highs for the

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Speaker 3: major indexes. The journal cited sources who said bess and

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Speaker 3: warned that attempting to oust Powell would result in political

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Speaker 3: and legal obstacles.

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Speaker 2: Nathan The yen is strengthening versus the dollar has investors

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Speaker 2: digest the impact of Japan's election results. Prime Minister Shighiro

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Speaker 2: Ashiba says he intends to stay on despite his ruling

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Speaker 2: coalition failing to secure a majority in the two hundred

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Speaker 2: and forty eight seat Upper House in a crucial parliamentary election.

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Speaker 2: David Boyling is a director at the Erasure Group.

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Speaker 6: This is sort of the second punch that Aeshiva has taken.

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Speaker 6: I think it's very hard. He was already on shape

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Speaker 6: ground he's even on more shaky ground to remain as

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Speaker 6: Prime minister. He's vowed to do so, but you know, Tato,

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Speaker 6: also very influential member, former Prime minister, has already said

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Speaker 6: that he wants to push him out. So I think

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Speaker 6: there's going to be the knives are coming out and

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Speaker 6: we'll just have to see if he can hang on.

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Speaker 2: It's not going to be easy, you Raising Group's David Boyling.

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Speaker 2: The loss is another blow to Aschiebas coalition, making it

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Speaker 2: a minority in both houses following its October defeat in

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Speaker 2: the lower House election.

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Speaker 3: Well, Karen of worldwide cyber attack is underway after hackers

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Speaker 3: exploited a widely used Microsoft program. Bloomberg's John Tucker's here

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Speaker 3: with the latest, John, what's happening?

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Speaker 7: Well, Hackers Nathan spotted a security flow at Microsoft's Sharepoints servers.

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Speaker 7: This has allowed them to launch a worldwide attack on

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Speaker 7: government agencies and businesses over the past few days. The

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Speaker 7: US Cybersecurity and Infrastructure Security Agency says this vulnerability allowed

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Speaker 7: hackers to access finle systems in internal configurations, as well

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Speaker 7: as execute code. More than ten thousand companies with SharePoint

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Speaker 7: servers are at risk. The US is the largest number

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Speaker 7: of these companies. Silas Cutler, researcher at Michigan based cybersecurity

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Speaker 7: firm Census, says this is a dream come true for

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Speaker 7: ransomware operators. At Washington Post reports the breach has already

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Speaker 7: affected US federal and state agencies, universities, and energy companies. Now,

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Speaker 7: Microsoft has released a new security patch for customers to

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Speaker 7: apply to their SharePoint servers to as they put a

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Speaker 7: mitigate active attacks targeting on premise servers. They're also adding

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Speaker 7: to roll out others. Shares of Microsoft pre market right

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Speaker 7: now down about two tenths of percent in New York.

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Speaker 7: On John Tucker Bloomberg Radio.

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Speaker 2: All right, John, thank you. Meanwhile, Alaska Air has resumed

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Speaker 2: operations after an IT outage temporarily grounded its fleet. The

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Speaker 2: grounding was canceled just after two am Wall Street time

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Speaker 2: this morning. It's the second time in over a year

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Speaker 2: Alaska Era has had to ground its fleet because of

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Speaker 2: IT problems.

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Speaker 3: Checking sports Now, Karen Scotty Scheffler has captured his second

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Speaker 3: major this year after dominating the British Open. Let's get

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Speaker 3: the details with Bloomberg Sports anchor John Stash Hour Stash,

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Speaker 3: this was an impressive performance.

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Speaker 5: It really was. Nathan Scheffler had a four shot lead

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Speaker 5: to start the final round and that lead drew to

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Speaker 5: seven and when he played the last hole in Royal

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Speaker 5: Port Rush, he was up by four.

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Speaker 8: The champion golfer Scotty Cheffler.

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Speaker 9: He felt in his career and yself felt.

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Speaker 1: Today it was only a matter of time before they

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Speaker 1: claimed the brittisplies in golf.

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Speaker 5: And that's courtesy of the RNA. Finished seventeen under part

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Speaker 5: at one point, went thirty two holes without a bogie.

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Speaker 5: He's the seventh and Open Championship history that four rounds

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Speaker 5: in the sixties. Well hear from Scheffler coming up. John Stashawer,

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Speaker 5: Bloomberg Sports.

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Speaker 2: All right, sounds good, Thank you John. Another sports related news,

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Speaker 2: President Trump is threatening to block the Washington Commander's bid

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Speaker 2: to build a new stadium in the district of Columbia.

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Speaker 2: The President says he may put a restriction on the

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Speaker 2: team if they don't change the name of the team

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Speaker 2: back to the Washington Redskins. The President has previously complained

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Speaker 2: about the football team's decision to change its name, aid

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Speaker 2: concerns the old name was a slur against Native Americans.

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Speaker 2: Donald Trump also leveled criticism at the Cleveland Guardians, the

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Speaker 2: Major League Baseball team that changed its name from the

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Speaker 2: Cleveland Indians in twenty twenty one.

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Speaker 3: Back on Wall Street, Karen Investors are huddling up for

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Speaker 3: another busy week of earnings. Let's take a look with

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Speaker 3: Bloomberg's Charlie Pellett.

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Speaker 8: Tech names including Tesla and Alphabet will be very much

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Speaker 8: in focus and at expectations from analysts for S and

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Speaker 8: P five hundred profits to rise two point eight percent

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Speaker 8: year over year. Scott Kroner has head of US Equity

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Speaker 8: Strategy Research at City Group Global Markets.

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Speaker 6: I think we're looking at a burgeoning free cash flow

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Speaker 6: backdrop for many of the companies within the S and

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Speaker 6: P five hundred, and what.

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Speaker 3: You get with this is a lot of financial flexibility.

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Speaker 8: Also reporting this week, IBM and Texas instrum on Capital One, Financial,

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Speaker 8: Ameror Prize, Blackstone, Chipotle, Mexican Grill, Coca Cola, General Motors,

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Speaker 8: and Honeywell International, among many many others. In New York,

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Speaker 8: Charlie Bloomberg Radio Thank you.

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Speaker 2: Charlie Stilantis has swung to a two point seven billion

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Speaker 2: dollar net loss in the first half as restructuring expenses,

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Speaker 2: waning sales, and the impact of US tariffs hit the

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Speaker 2: struggling automaker. Stalantis's shipments fell six percent in the second

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Speaker 2: quarter amid declines in North America and Europe. The company

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Speaker 2: still has an issued financial guidance for this year due

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Speaker 2: to US tariff uncertainties. Time now for a look at

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Speaker 2: some of the other stories making news in New York

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Speaker 2: and around the world, and for that we're joined by

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Speaker 2: Bloomberg's Monica Ricks Monica, Good morning.

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Speaker 9: Hey, Good morning, Karen. Ukraine says it is under attack

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Speaker 9: this morning Ukrainian air defense as Russia launch missiles and drones,

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Speaker 9: with those explosions heard across the country. The attacks coming

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Speaker 9: a day after Ukraine's pre In Zelenski pushed more peace

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Speaker 9: talks with Russia. Meantime, the Palestinian health Ministry says its

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Speaker 9: experience its deadliest day in over twenty one months of war.

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Speaker 9: More than ninety Palestinians have been killed this weekend while

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Speaker 9: trying to access food and aid in Gaza. The head

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Speaker 9: of FEMA will testify before Congress this week. Bloomberg's Amy

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Speaker 9: Morris is in Washington.

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Speaker 10: David Richardson has led FEMA since May He'll appeared July

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Speaker 10: twenty third at a hearing for a House Emergency Management

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Speaker 10: Panel subcommittee Chairman Scott Perry will focus on how FEMA

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Speaker 10: can become more agile and effective in disaster response. But

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Speaker 10: lawmakers are also expected to grill Richardson on FEMA's response

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Speaker 10: to the Texas floods, which killed more than one hundred

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Speaker 10: people earlier this month, and Democrats want to know about

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Speaker 10: the time it took FEMA to activate search and rescue

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Speaker 10: teams and how it managed calls for help. President Trump

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Speaker 10: earlier this year had announced plans to overhaul or even

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Speaker 10: eliminate FEMA to give states a bigger role in disaster response.

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Speaker 10: In Washington, Amy Morris Bloomberg Radio.

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Speaker 9: In Texas, the state legislator there will hold a special

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Speaker 9: meetia on those devastating floods. The number of missing people

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Speaker 9: has dropped dramatically, down to just three people in Kirk

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Speaker 9: County now. More than one hundred and thirty people were

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Speaker 9: killed at a close call in the sky in my

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Speaker 9: not North Dakota. Delta pilot there had to make what

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Speaker 9: he described as an aggressive mid air maneuver to avoid

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Speaker 9: crashing into a B fifty two bomber. The pilot says

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Speaker 9: he was never given a warning by air traffic control

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Speaker 9: and had to apologize to passengers once they were on

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Speaker 9: the ground. Luckily, no one was hurt. Global News twenty

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Speaker 9: four hours a day and whenever you want it with

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Speaker 9: Bloomberg News. Now, I'm Monica Ricks.

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Speaker 10: This is Bloomberg.

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Speaker 2: All right, Monica, thank you time now for the Bloomberg

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Speaker 2: Sports Update. Here's John stash Hour, John, Good morning.

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Speaker 5: Yeah morning, Karni Scotti. Scheffler dominated the Open Championship in

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Speaker 5: Northern Ireland, finishing seventeen under par, winning by four shots.

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Speaker 5: One couldn't help but at least begin to consider whether

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Speaker 5: he is now dominating golf like Tiger Woods once did

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Speaker 5: a Royal port ross. Scheffler was asked about the comparison.

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Speaker 11: I still think they're a bit silly, you know, Tiger one,

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Speaker 11: what fifteen majors, this is my fourth, could just got

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Speaker 11: one fourth of the way there, So just I mean,

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Speaker 11: it's I think Tiger stands alone in the game of golf.

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Speaker 11: You know, he was inspirational for me growing up, and

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Speaker 11: he was a very very talented guy, and he was

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Speaker 11: a special person to be able to be as good

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Speaker 11: as he wasn't the game of golf, and.

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Speaker 8: It's true that well.

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Speaker 5: Scheffler has won four majors over the last four years.

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Speaker 5: Tiger won four in a row in two thousand and

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Speaker 5: oh one, including a win at the PGA that was

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Speaker 5: by fifteen shots. American Harris English yesterday finished second and

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Speaker 5: New Jersey native Chris gottter Up was third. He had

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Speaker 5: only learned last Sunday that he was going to be

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Speaker 5: in the field after he beat out Rory McElroy.

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Speaker 8: At the Scottish Open.

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Speaker 5: Yankees off the big comeback Saturday night in Atlanta. Had

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Speaker 5: a quick start first inning Yesterday.

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Speaker 12: Hi joed right center Peel Parrot say Yuh a home

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Speaker 12: run for Judge, his thirty sixth of the year.

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Speaker 5: It's one nothing yet, yes Network Yanks beat the Braves

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Speaker 5: four to four to two, solid sixth inning start from

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Speaker 5: Marcus Stroman. Toronto finished a sweep of the Giants. The

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Speaker 5: Blue Jays have won ten in a row at home

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Speaker 5: that includes the recent four games sweep of the Yankees.

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Speaker 5: Are now back in Toronto tonight with the Jays three

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Speaker 5: games ahead in the alas the Mets first wins. It's

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Speaker 5: the All Star brag at City Field salvage one from

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Speaker 5: Cincinnati three to two. The Red Sox salvaged one from

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Speaker 5: the Cubs at Wrigley six to one. Garrett croches eleventh

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Speaker 5: win the National sixtieth loss beaten by San Diego eight

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Speaker 5: to one, and Milwaukee completed a second sweep. Over the

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Speaker 5: last two weeks of the Dodgers and the Brewers have

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Speaker 5: won ten in a row. They're tied for first in

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Speaker 5: the NL Central. John stashiew We're Bloomberg Sports. Carry Nathan.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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

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

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Speaker 3: Good morning, I'm Nathan Hager. Eleven days to go until

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Speaker 3: President Trump's August first tariff deadline. The European Union is

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Speaker 3: said to be prepared now for a no deal scenario,

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Speaker 3: while the Trump administration holds firms to its demands on

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Speaker 3: the EU and other major trading partners. Commerce Secretary Howard

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Speaker 3: Ludnik made the case on CBS's face the nation.

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Speaker 5: It's fair trade, it's reciprocal trade.

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Speaker 12: Why should we have our country be wide open while

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Speaker 12: there's is.

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Speaker 3: Closed Commerce Secretary Ludnik on Face the Nation, heard every

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Speaker 3: Sunday on Bloomberg Radio. This morning, we're joined by Bloomberg's

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Speaker 3: Jill Disis. So, Jill, the negotiations go on on the

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Speaker 3: media and behind closed doors as well. Where do things

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Speaker 3: stand between the US and EU just ahead of this

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Speaker 3: August first deadline?

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Speaker 8: Good morning, Good.

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Speaker 13: Morning, Nathan Well. I think the best way to think

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Speaker 13: about this agreement at this point, or any kind of

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Speaker 13: negotiation that's unfolding, is that it does appear as if

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Speaker 13: the stance by Donald Trump himself, the Trump administration, the

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Speaker 13: White House is hardening ahead of that August first deadline.

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Speaker 13: At this point, Trump has already threatened to hit most

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Speaker 13: EU exports with the tariffs of about thirty percent, and

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Speaker 13: so from an EU negotiation side, you've got, you know,

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Speaker 13: this block that is sitting there thinking, you know, is

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Speaker 13: it actually even possible to try to negotiate for a

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Speaker 13: lower rate. I think that at this point, you know,

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Speaker 13: what seemed a little bit more conceivable several months ago,

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Speaker 13: this idea that maybe you could, you know, negotiate for

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Speaker 13: tariffs of ten percent on most goods or so seems

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Speaker 13: to be you know, a bit out the window. So

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Speaker 13: if your officials and Brussels, I mean, I think what

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Speaker 13: we've heard is that ultimately what they are trying to

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Speaker 13: calculate for now is what happens if this agreement that

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Speaker 13: is reached by August first, or you know, whenever that

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Speaker 13: deadline passes, you know, what happens if that's you know,

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Speaker 13: incredibly unbalanced. What if they don't end up getting a

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Speaker 13: lot of the major exemptions that they were ultimately hoping for.

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Speaker 13: And so if your Brussels you're looking at this arrangement

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Speaker 13: and you're saying, okay, you know, potentially there could be

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Speaker 13: preparations to retaliate in a scenario there's absolutely no agreement.

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Speaker 13: So I think that that's kind of where we're at.

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Speaker 13: I'd actually argue that when you look at the totality

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Speaker 13: of all of these other negotiations that are happening around

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Speaker 13: the world, you know, other economies are also in sort

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Speaker 13: of a similar position where I think they're you know,

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Speaker 13: increasingly being confronted with this possibility that you could have

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Speaker 13: fairly high tariffs by August first, perhaps higher than again,

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Speaker 13: what was you know, ultimately thought of when Trump first

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Speaker 13: came into the office in January.

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Speaker 3: So what could retaliation by the EU look like, I mean,

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Speaker 3: we've heard the possibility of retaliatory tariffs on you know,

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Speaker 3: certain politically sensitive goods as well as the idea of

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Speaker 3: this anti coercion instrument coming out what seems most likely

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Speaker 3: at this point.

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Speaker 13: Yes, So let's start with those potential tariffs. So the

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Speaker 13: EU has already actually approved potential tariffs on somewhere in

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Speaker 13: the neighborhood of twenty one billion euros worth of US goods.

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Speaker 13: The idea is that you know, these could be implemented

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Speaker 13: that would target politically sensitive American states Potentially they include

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Speaker 13: products such as soybeans from Louisiana that's of course home

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Speaker 13: to how speaker Mike Johnson, potentially some other agricultural products, poultry, motorcycles.

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Speaker 13: They've also prepared a list of tariffs on an additional

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Speaker 13: seventy two billion dollars worth of a billion euros rather

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Speaker 13: worth of American products in response to reciprocal levies and

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Speaker 13: automotive duties. So, you know, those additional targets. And then

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Speaker 13: the thing that you're talking about at the end there

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Speaker 13: this anti coursion instrument. That is something that you know,

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Speaker 13: we've reported on recently a growing number of EU member

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Speaker 13: states are thinking, you know, look, this is ultimately what

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Speaker 13: would be our most powerful trade tool. This would give

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Speaker 13: officials more broader powers to take retaliatory action. And so

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Speaker 13: that's something that at least in certain corners of the

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Speaker 13: block is being pushed. But again, I think, you know,

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Speaker 13: it just really kind of goes to show you that

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Speaker 13: at least when it comes to the EU again, they're

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Speaker 13: preparing for this idea that what ultimately is decided may

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Speaker 13: not be particularly favorable to the EU, and so it's

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Speaker 13: pushing them in this position to consider those retaliatory efforts.

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