WEBVTT - US-Canada Trade Breakdown; Warsh Readies for Jackson Hole

0:00:02.560 --> 0:00:09.080
<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

0:00:10.119 --> 0:00:13.240
<v Speaker 2>Good morning, I'm Nathan Hager and I'm Alexis Christophers.

0:00:13.280 --> 0:00:15.320
<v Speaker 3>Here are the stories we're following today.

0:00:15.440 --> 0:00:17.520
<v Speaker 4>Alex As we begin with the new trade war for

0:00:17.560 --> 0:00:20.400
<v Speaker 4>the US with its northern neighbor. The US has slapped

0:00:20.440 --> 0:00:23.680
<v Speaker 4>fifty percent tariffs on around twenty billion dollars of Canadian

0:00:23.680 --> 0:00:27.520
<v Speaker 4>goods after talks collapsed late Friday. Now Canada is preparing

0:00:27.600 --> 0:00:30.560
<v Speaker 4>retaliatory tariffs, and Prime Minister Mark Karney says he's also

0:00:30.640 --> 0:00:34.479
<v Speaker 4>preparing a domestic aid package for businesses affected by the spat.

0:00:34.800 --> 0:00:37.280
<v Speaker 4>Transportation Secretary Sean Duffy says this.

0:00:37.240 --> 0:00:39.240
<v Speaker 5>Won't end well for Canada.

0:00:38.880 --> 0:00:40.120
<v Speaker 6>But I think that they're going to go to war

0:00:40.159 --> 0:00:43.120
<v Speaker 6>with Donald Trump and actually win that war with the US.

0:00:43.440 --> 0:00:44.800
<v Speaker 5>I think it's foolish on their part.

0:00:45.040 --> 0:00:47.080
<v Speaker 6>I think you're going to see Mark Karney come to

0:00:47.120 --> 0:00:49.360
<v Speaker 6>the table very very quickly, because it's going to be

0:00:49.360 --> 0:00:50.520
<v Speaker 6>devastating forest Country.

0:00:50.600 --> 0:00:53.920
<v Speaker 4>Transportation Secretary Sean Duffy appeared on Fox New Sunday, Heard

0:00:53.920 --> 0:00:57.200
<v Speaker 4>Every Sunday on Bloomberg Radio. Bloomberg Global Trade Editor Brendan

0:00:57.240 --> 0:01:00.800
<v Speaker 4>Murray reports Canada sees little chance, though of zooming talks

0:01:00.800 --> 0:01:03.240
<v Speaker 4>with the US before the November midterms.

0:01:03.480 --> 0:01:07.480
<v Speaker 7>It looks like the calculus from Ottawa's perspective to some extent,

0:01:07.680 --> 0:01:11.800
<v Speaker 7>is that the political costs here for Donald Trump to

0:01:11.920 --> 0:01:15.880
<v Speaker 7>engage with Canada in a trade war, to slap tariffs

0:01:15.880 --> 0:01:19.839
<v Speaker 7>on each other, it might be detrimental to the Republican

0:01:19.880 --> 0:01:22.160
<v Speaker 7>Party heading into the midterm elections.

0:01:22.160 --> 0:01:25.960
<v Speaker 4>Here in Bloomberg's Brendan Murray reports, Canada's retaliatory tariffs won't

0:01:26.000 --> 0:01:29.200
<v Speaker 4>take effect until September eighth, but sources tell Bloomberg News

0:01:29.240 --> 0:01:32.319
<v Speaker 4>Canada's domesticate package could remain in place through the rest

0:01:32.360 --> 0:01:34.120
<v Speaker 4>of President Trump's term if need be.

0:01:34.319 --> 0:01:37.320
<v Speaker 3>And Treasury Secretary Scott Bessant is preparing to announce an

0:01:37.360 --> 0:01:40.160
<v Speaker 3>economic d day for Tehran. We get more from Bloomberg

0:01:40.200 --> 0:01:43.119
<v Speaker 3>Middle East correspondent Abira Boulamar in Dubai.

0:01:43.319 --> 0:01:45.440
<v Speaker 8>We have to a wait, of course, the details of

0:01:45.600 --> 0:01:48.800
<v Speaker 8>what Scott's best in trual layout in this press conference,

0:01:48.840 --> 0:01:52.040
<v Speaker 8>but what is widely expected is an announcement of some

0:01:52.160 --> 0:01:56.080
<v Speaker 8>kind of secondary sanctions against countries that continue or choose

0:01:56.080 --> 0:01:59.200
<v Speaker 8>to continue to do deals or trade deals with Ron

0:01:59.440 --> 0:02:02.040
<v Speaker 8>out of course, includes countries in the Gulf, namely the

0:02:02.120 --> 0:02:05.600
<v Speaker 8>United Arab Emirates that of course includes India and the

0:02:05.600 --> 0:02:09.200
<v Speaker 8>big one, China, which why is about ninety percent of

0:02:09.360 --> 0:02:12.160
<v Speaker 8>Iranian oil. China actually came out over the weekend and

0:02:12.200 --> 0:02:14.800
<v Speaker 8>said that it will continue to support the diplomatic route

0:02:15.120 --> 0:02:18.400
<v Speaker 8>between the United States and Iran. Any kind of secondary

0:02:18.440 --> 0:02:22.880
<v Speaker 8>measure against China will bring out a bigger conversation about

0:02:22.960 --> 0:02:27.560
<v Speaker 8>tariff or trade wars between the United States and other countries.

0:02:27.639 --> 0:02:31.720
<v Speaker 3>Bloomberg's Abira bu Omar reports. Secretary Bessent previewed the effort

0:02:31.720 --> 0:02:34.880
<v Speaker 3>and a Financial Times opinion piece, writing that the objective

0:02:34.919 --> 0:02:38.480
<v Speaker 3>is to quote sever every economic lifeline that sustains the

0:02:38.520 --> 0:02:42.519
<v Speaker 3>tyrannical regime until Tehran stands alone. Ahead of the announcement,

0:02:42.520 --> 0:02:45.800
<v Speaker 3>Iran's currency weakened to an all time low against the dollar,

0:02:45.919 --> 0:02:48.720
<v Speaker 3>falling four and a half percent since President Trump announced

0:02:48.720 --> 0:02:50.959
<v Speaker 3>the crushing economic Operation Alexis.

0:02:50.960 --> 0:02:53.560
<v Speaker 4>World leaders have gathered in Kiev to mark thirty five

0:02:53.639 --> 0:02:57.519
<v Speaker 4>years since Ukraine declared independence, and the dignitaries include UK

0:02:57.680 --> 0:03:00.799
<v Speaker 4>Prime Minister Andy Burnham. Let's go to London and get

0:03:00.800 --> 0:03:02.600
<v Speaker 4>the latest from Bloomberg's James Wilcock.

0:03:02.600 --> 0:03:05.640
<v Speaker 2>Good Morning James, Good morning Nathan, and Alexis, many of

0:03:05.639 --> 0:03:08.280
<v Speaker 2>Europe's leaders took the overnight train into Kiev for love

0:03:08.320 --> 0:03:11.040
<v Speaker 2>with fresh pledges of cash for the war effort. It's

0:03:11.080 --> 0:03:13.520
<v Speaker 2>become a familiar trip for the likes of the EU's

0:03:13.560 --> 0:03:16.960
<v Speaker 2>Antonio Costa, but it's the first for the UK's relatively

0:03:17.000 --> 0:03:19.639
<v Speaker 2>new lead. To Andy Burnham, who's chairing a meeting of

0:03:19.720 --> 0:03:23.480
<v Speaker 2>Kiev's allies to mark the thirty fifth anniversary of Ukraine

0:03:23.480 --> 0:03:27.079
<v Speaker 2>declaring independence, it's the independence they've guarded now for more

0:03:27.080 --> 0:03:29.720
<v Speaker 2>than four years of war with Russia. But it's a

0:03:29.760 --> 0:03:33.320
<v Speaker 2>war with no clear end insight in London, James Wilcock,

0:03:33.360 --> 0:03:34.399
<v Speaker 2>Bloomberg Radio.

0:03:34.360 --> 0:03:35.000
<v Speaker 5>Thanks James.

0:03:35.200 --> 0:03:39.000
<v Speaker 3>Meantime, the US military has scrapped an amphibious landing exercise

0:03:39.040 --> 0:03:42.120
<v Speaker 3>with South Korea due to shortages related to deployments to

0:03:42.160 --> 0:03:44.760
<v Speaker 3>the Middle East. That's according to a spokesperson for South

0:03:44.800 --> 0:03:48.480
<v Speaker 3>Korea's Marine Corps. The postponement comes after President Trump recently

0:03:48.560 --> 0:03:51.800
<v Speaker 3>ordered the scaling back of a separate joint military exercise

0:03:51.880 --> 0:03:55.320
<v Speaker 3>with South Korea. The president cited his desire to maintain

0:03:55.360 --> 0:03:58.760
<v Speaker 3>his relationship with North Korean dictator Kim Jong un and

0:03:58.880 --> 0:04:02.280
<v Speaker 3>Soul's purported refuse US to help Washington with its conflict

0:04:02.280 --> 0:04:03.000
<v Speaker 3>against Iran.

0:04:03.280 --> 0:04:05.640
<v Speaker 4>Let's turn to the markets in the economy now. Alexis

0:04:05.680 --> 0:04:08.800
<v Speaker 4>investors are looking ahead to Finchcher Kevin Warsh's comments in

0:04:08.960 --> 0:04:12.040
<v Speaker 4>Jackson Hole, Wyoming this week for clues on the path

0:04:12.080 --> 0:04:16.080
<v Speaker 4>for interest rates. Jack Manley, Global Market Strategistic JP Morgan

0:04:16.120 --> 0:04:19.159
<v Speaker 4>Asset Management does not expect Warsh to say much.

0:04:19.320 --> 0:04:21.479
<v Speaker 9>I think we're going to hear a whole lot of nothing,

0:04:21.560 --> 0:04:24.920
<v Speaker 9>you know, to probably oversimplify things. I mean, Warsh has

0:04:24.960 --> 0:04:27.839
<v Speaker 9>made it extremely clear that he wants to hold the cards,

0:04:28.200 --> 0:04:30.520
<v Speaker 9>closes his chest as close to his chest as he

0:04:30.600 --> 0:04:34.159
<v Speaker 9>possibly can. He is not particularly interested in forward guidance.

0:04:34.200 --> 0:04:35.960
<v Speaker 9>I think it's going to be a lot of cryptic talking.

0:04:36.160 --> 0:04:38.559
<v Speaker 9>I think we'll probably get an update on where those

0:04:38.640 --> 0:04:41.880
<v Speaker 9>task forces are and how that progress or how those

0:04:41.920 --> 0:04:44.200
<v Speaker 9>things are progressing. But don't expect a whole lot of

0:04:44.200 --> 0:04:45.920
<v Speaker 9>clarity on what the Fed's going to be doing over

0:04:45.960 --> 0:04:47.159
<v Speaker 9>the next twelve to eighteen months.

0:04:47.200 --> 0:04:48.880
<v Speaker 5>That is not Warsh's story.

0:04:48.720 --> 0:04:51.680
<v Speaker 4>It's JP Morgan Asset Management's Jack Manley. We invite you

0:04:51.720 --> 0:04:54.080
<v Speaker 4>to join us this Friday for a special edition of

0:04:54.120 --> 0:04:59.039
<v Speaker 4>Bloomberg Surveillance Live from the Jackson Hole Economic Symposium, Tom Kean,

0:04:59.160 --> 0:05:02.479
<v Speaker 4>Lisa Bramoay, and Michael McKee speak with FED experts on

0:05:02.560 --> 0:05:06.039
<v Speaker 4>the path forward starting Friday, nine am, Wall Street Time

0:05:06.080 --> 0:05:09.440
<v Speaker 4>on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app.

0:05:09.520 --> 0:05:12.479
<v Speaker 3>We'll be there looking forward to it. Meantime, treasury yields

0:05:12.480 --> 0:05:15.120
<v Speaker 3>are trading your multi year highs ahead of that Jackson

0:05:15.200 --> 0:05:18.480
<v Speaker 3>Home meeting, and hedge funds are increasing bearished dollar bets

0:05:18.480 --> 0:05:21.360
<v Speaker 3>as they await details on Treasury Secretary Scott Besson's new

0:05:21.360 --> 0:05:25.120
<v Speaker 3>fiscal plan to address high borrowing costs. Federal Reserve Bank

0:05:25.120 --> 0:05:29.240
<v Speaker 3>of Minneapolis President Neil Kashkari is downplaying concerns over rising

0:05:29.320 --> 0:05:32.800
<v Speaker 3>US treasury yields. He spoke on CBS's Face the Nation, there's.

0:05:32.600 --> 0:05:35.880
<v Speaker 6>Every indication that the US treasury market is functioning as

0:05:35.920 --> 0:05:38.360
<v Speaker 6>it should. Kind of trades are taking place, that there's

0:05:38.440 --> 0:05:41.000
<v Speaker 6>liquidity in the market, and so that enables us to

0:05:41.040 --> 0:05:44.200
<v Speaker 6>focus on the federal funds rate as our primary policy

0:05:44.240 --> 0:05:46.600
<v Speaker 6>tool to get inflation back down. And so I think

0:05:46.720 --> 0:05:48.760
<v Speaker 6>we have the freedom to do what we need to

0:05:48.800 --> 0:05:51.560
<v Speaker 6>do to achieve our goals that Congress has assigned US.

0:05:51.800 --> 0:05:55.600
<v Speaker 3>Federal Reserve Bank of Minneapolis President Neil Kashkari also express

0:05:55.640 --> 0:05:59.440
<v Speaker 3>concerns that inflation won't cool anytime soon, but he stops

0:05:59.440 --> 0:06:01.480
<v Speaker 3>short of saying whether he'd call for a rate hike

0:06:01.640 --> 0:06:02.320
<v Speaker 3>in September.

0:06:02.440 --> 0:06:06.080
<v Speaker 4>As for equities, Alexis tech stocks are leading futures mostly

0:06:06.080 --> 0:06:08.360
<v Speaker 4>lower as we begin this new trading week, and as

0:06:08.400 --> 0:06:13.240
<v Speaker 4>investors await Nvidia's earnings. On Wednesday, The Information is reporting

0:06:13.279 --> 0:06:16.960
<v Speaker 4>the chip makers discussing investing in Perplexity in Equity Round,

0:06:17.000 --> 0:06:20.400
<v Speaker 4>valuing that AI startup at more than thirty billion dollars.

0:06:20.360 --> 0:06:23.800
<v Speaker 3>And Nathan In Asia, South Korea's COSTPE index dropped more

0:06:23.839 --> 0:06:27.080
<v Speaker 3>than three percent. It was led lower by Samsung Electronics.

0:06:27.120 --> 0:06:29.880
<v Speaker 3>That stock dropped more than four percent as investors were

0:06:29.880 --> 0:06:33.440
<v Speaker 3>disappointed by a new shareholder return package that favors dividends.

0:06:33.720 --> 0:06:36.360
<v Speaker 3>Sk Heinex also dropped more than four percent.

0:06:36.520 --> 0:06:39.479
<v Speaker 4>The shares of Aali Baba fell almost nine percent Alexis

0:06:39.480 --> 0:06:42.200
<v Speaker 4>after that company raised more than ten billion dollars in

0:06:42.279 --> 0:06:46.640
<v Speaker 4>Hong Kong's biggest secondary share sale on record. Alibaba plans

0:06:46.680 --> 0:06:48.920
<v Speaker 4>to use the proceeds to invest in AI.

0:06:49.200 --> 0:06:52.360
<v Speaker 3>And SoftBank is planning a record six point three billion

0:06:52.400 --> 0:06:55.520
<v Speaker 3>dollar retail bond sale that's the biggest by any issuer

0:06:55.640 --> 0:06:58.800
<v Speaker 3>in Japan. The conglomerate is raising funds for its investment

0:06:58.800 --> 0:07:02.480
<v Speaker 3>commitments to open ai SoftBank has committed more than sixty

0:07:02.480 --> 0:07:05.640
<v Speaker 3>billion dollars to invest in the chat GPT developer.

0:07:05.279 --> 0:07:06.680
<v Speaker 5>I'm looking at cryptocurrencies now.

0:07:06.680 --> 0:07:10.400
<v Speaker 4>Alexis Spot Bitcoin exchange traded funds had their strongest weekly

0:07:10.520 --> 0:07:14.960
<v Speaker 4>inflow in ten months last week, as the original cryptocurrency surged.

0:07:15.320 --> 0:07:17.760
<v Speaker 4>The thirteen US listed funds drew in a net one

0:07:17.800 --> 0:07:21.600
<v Speaker 4>point nine billion dollars. The inflow came as bitcoin gained

0:07:21.640 --> 0:07:23.920
<v Speaker 4>about twenty three percent last week.

0:07:23.920 --> 0:07:27.880
<v Speaker 3>And Nathan California's Attorney general has reportedly canceled a scheduled

0:07:27.920 --> 0:07:31.040
<v Speaker 3>meeting today with Paramount to begin discussing a settlement of

0:07:31.080 --> 0:07:33.880
<v Speaker 3>the state's lawsuit to block the media giant's acquisition of

0:07:33.920 --> 0:07:37.320
<v Speaker 3>Warner Brothers Discovery. The New York Times reports at California's

0:07:37.320 --> 0:07:41.920
<v Speaker 3>attorney general accused Paramount of leaking and misrepresenting earlier settlement talks.

0:07:42.320 --> 0:07:45.640
<v Speaker 3>California and eleven other states aursuing Paramount to block the deal,

0:07:45.760 --> 0:07:48.559
<v Speaker 3>arguing it would create a company with outsize market power

0:07:48.640 --> 0:07:54.440
<v Speaker 3>and cable TV and movie studios. Five HT nine on

0:07:54.520 --> 0:07:56.040
<v Speaker 3>Wall Street time now for a look at some of

0:07:56.040 --> 0:07:58.080
<v Speaker 3>the other stories making news in New York and around

0:07:58.080 --> 0:08:00.160
<v Speaker 3>the world. For that were joined by Bloomberg's Michael bar

0:08:00.200 --> 0:08:01.320
<v Speaker 3>Good Morning, Michael.

0:08:01.040 --> 0:08:04.400
<v Speaker 10>Good Morning, Alexis. Days ahead of the twenty fifth commemoration

0:08:04.520 --> 0:08:07.880
<v Speaker 10>of the nine eleven attacks, there is a continuing effort

0:08:07.920 --> 0:08:11.320
<v Speaker 10>to formally identify all of the nearly three thousand people

0:08:11.440 --> 0:08:14.200
<v Speaker 10>killed at the World Trade Center. For the first time,

0:08:14.320 --> 0:08:18.800
<v Speaker 10>the Medical Examiner's Office and the NYPD have identified a

0:08:18.880 --> 0:08:23.480
<v Speaker 10>nine to eleven victim using genetic genealogy, combining DNA testing

0:08:23.520 --> 0:08:27.920
<v Speaker 10>with family trees. Doctor Jennifer Udian is a forensic anthropologist

0:08:28.160 --> 0:08:30.760
<v Speaker 10>in the Office of the Chief Medical Examiner for New

0:08:30.840 --> 0:08:31.280
<v Speaker 10>York City.

0:08:31.840 --> 0:08:35.720
<v Speaker 4>It's amazing when we get a possible new idea and

0:08:35.760 --> 0:08:38.320
<v Speaker 4>then when we are able to confirm it and know

0:08:38.520 --> 0:08:41.439
<v Speaker 4>that now another family is going to have that information.

0:08:42.080 --> 0:08:46.480
<v Speaker 10>Officials say an adult female is the newly identified victim.

0:08:46.840 --> 0:08:50.839
<v Speaker 10>Officials say a fast growing wildfire in Reno, Nevada, was

0:08:51.040 --> 0:08:55.199
<v Speaker 10>human caused. The hawk fire grew Sunday and is uncontained.

0:08:55.520 --> 0:08:58.480
<v Speaker 10>Authority is confirmed several structures have been destroyed, and that

0:08:58.559 --> 0:09:01.800
<v Speaker 10>six people have been Heard about forty two thousand residents

0:09:01.800 --> 0:09:05.640
<v Speaker 10>have been ordered evacuated, including this woman Gabor I could.

0:09:05.400 --> 0:09:11.000
<v Speaker 2>I can't really see anything because there's no lights snow power.

0:09:11.640 --> 0:09:14.960
<v Speaker 10>Evana. Governor Joe Lombardo declared a state of emergency in

0:09:15.040 --> 0:09:19.679
<v Speaker 10>Washall County. Shelley Fabray, who starred in several TV series

0:09:19.720 --> 0:09:22.520
<v Speaker 10>such as The Donna Reed Show and Coach, has died.

0:09:22.920 --> 0:09:24.720
<v Speaker 5>So far, no word on the cause of death.

0:09:24.960 --> 0:09:28.840
<v Speaker 10>Shelley Fabray was eighty two Tennis fans tight securities plan

0:09:29.000 --> 0:09:31.800
<v Speaker 10>for today's start of the US Open. The New York

0:09:31.800 --> 0:09:36.920
<v Speaker 10>City Police have new authority from DHS to counter unauthorized drones.

0:09:37.240 --> 0:09:40.720
<v Speaker 10>The NYPD will deploy a mobile surveillance center to track

0:09:40.880 --> 0:09:45.040
<v Speaker 10>drones and use sophisticated technology to hack into their guidance systems.

0:09:45.440 --> 0:09:48.040
<v Speaker 10>Global news twenty four hours a day and whenever you

0:09:48.080 --> 0:09:51.480
<v Speaker 10>want it with Bloomberg News Now. Michael Baron, This is Bloomberg.

0:09:52.200 --> 0:09:52.840
<v Speaker 5>Thanks Michael.

0:09:52.960 --> 0:09:55.360
<v Speaker 4>Time now for our Bloomberg Sports update, and for that

0:09:55.520 --> 0:09:58.200
<v Speaker 4>we bring in Dan Schwartzman baseball scoreboard.

0:09:58.200 --> 0:10:00.319
<v Speaker 11>The Yankees beat the Blue Jays eight to three, while

0:10:00.320 --> 0:10:02.240
<v Speaker 11>the Mets give up a walkoff homer to loose to

0:10:02.240 --> 0:10:04.840
<v Speaker 11>the White Sox two to one. Elsewhere, the Red Sox

0:10:04.880 --> 0:10:07.280
<v Speaker 11>lip past the Giants five to four. The Orioles loose

0:10:07.320 --> 0:10:09.360
<v Speaker 11>to the race three to one, while the Nationals are

0:10:09.400 --> 0:10:12.160
<v Speaker 11>beaten by the Marlins six to two. Meanwhile, the Braves

0:10:12.160 --> 0:10:15.240
<v Speaker 11>doubloped the Brewers four to two, Cubs dominate the Mariners

0:10:15.320 --> 0:10:18.000
<v Speaker 11>nineteen to two, while the Phillies done the Cardinals six

0:10:18.080 --> 0:10:20.040
<v Speaker 11>to four, scoring all six runs in the bottom of

0:10:20.080 --> 0:10:23.280
<v Speaker 11>the ninth inning. NFL preseason Sunday Night football saw the

0:10:23.280 --> 0:10:26.840
<v Speaker 11>Texans outlast the Seahawks nineteen to sixteen. In the NBA.

0:10:26.880 --> 0:10:29.800
<v Speaker 11>After waiting to clear waivers, Clay Thompson officially signing a

0:10:29.800 --> 0:10:32.319
<v Speaker 11>two year deal to join the Miami Heat. A golf

0:10:32.360 --> 0:10:35.040
<v Speaker 11>Wyndham Clark wins the BMW Championship in Saint Louis by

0:10:35.040 --> 0:10:38.560
<v Speaker 11>three strokes over Patrick Cantley. That's your Bloomberg Sports update.

0:10:40.200 --> 0:10:43.679
<v Speaker 4>Stay with us more from Bloomberg Daybreak coming up after.

0:10:43.400 --> 0:10:52.320
<v Speaker 1>This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

0:10:52.440 --> 0:10:55.280
<v Speaker 1>and around the world on Bloomberg dot Com and the

0:10:55.320 --> 0:10:58.440
<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

0:10:58.600 --> 0:10:59.120
<v Speaker 5>Good morning.

0:10:59.120 --> 0:11:02.120
<v Speaker 4>The US as gary up for economic war on multiple fronts,

0:11:02.200 --> 0:11:04.720
<v Speaker 4>now a trade war with Canada and an economic d

0:11:04.840 --> 0:11:08.560
<v Speaker 4>day on Iran. Canada is preparing retaliatory tariffs on the

0:11:08.640 --> 0:11:11.560
<v Speaker 4>US after the collapse of trade talks, but former Deputy

0:11:11.559 --> 0:11:14.320
<v Speaker 4>Canadian Prime Minister Christia Freeland says her country does not

0:11:14.440 --> 0:11:16.160
<v Speaker 4>see trade as a zero sum game.

0:11:16.559 --> 0:11:20.560
<v Speaker 12>I think at heart that is not President Trump's view,

0:11:21.200 --> 0:11:24.040
<v Speaker 12>and that is a real problem, and it's a problem

0:11:24.080 --> 0:11:26.959
<v Speaker 12>not only for Canada, it's a problem for the United States.

0:11:27.160 --> 0:11:30.439
<v Speaker 4>Former Canadian Deputy Prime Minister Christia Freeland was on Bloomberg

0:11:30.520 --> 0:11:34.360
<v Speaker 4>this weekend. Joining us now is Julie Norman, Associate fellow

0:11:34.400 --> 0:11:38.200
<v Speaker 4>at Chathamhouse. Julie, it's great to speak with you this morning.

0:11:38.400 --> 0:11:41.640
<v Speaker 4>Who has the bigger problem now with the US and

0:11:41.720 --> 0:11:44.880
<v Speaker 4>Canada apparently headed for trade war?

0:11:44.960 --> 0:11:46.640
<v Speaker 5>Good morning, Yeah, good morning, Nathan.

0:11:46.760 --> 0:11:49.960
<v Speaker 13>I mean, obviously for Canada, this is a bold move.

0:11:50.040 --> 0:11:53.760
<v Speaker 13>With about seventy percent of Canadian exports going to the US,

0:11:54.040 --> 0:11:56.480
<v Speaker 13>this is going to hit Canada hard, and Carney, I

0:11:56.520 --> 0:11:59.760
<v Speaker 13>think knows that. But this is a bigger thing also

0:12:00.200 --> 0:12:03.160
<v Speaker 13>for the US's style of negotiating and Trump's style of

0:12:03.200 --> 0:12:06.080
<v Speaker 13>negotiating these tariffs not only with Canada, but with other

0:12:06.120 --> 0:12:09.720
<v Speaker 13>countries as well, and seeing a country like Canada that

0:12:09.920 --> 0:12:13.320
<v Speaker 13>does rely so much on this trade relationship. Taking this move,

0:12:13.720 --> 0:12:16.240
<v Speaker 13>I think it's very important. It shows that countries can

0:12:16.360 --> 0:12:19.200
<v Speaker 13>and will stand up to Trump if they are being

0:12:19.640 --> 0:12:22.400
<v Speaker 13>essentially bullied into deals that are not in their interests.

0:12:23.160 --> 0:12:27.199
<v Speaker 4>We saw Canada say that they are going to impose

0:12:27.240 --> 0:12:31.679
<v Speaker 4>retaliatory tariffs on the US in fifteen days September eighth.

0:12:32.000 --> 0:12:35.600
<v Speaker 5>Does that leave enough room for negotiation at this point?

0:12:35.679 --> 0:12:37.400
<v Speaker 13>I think we can assume that there will be some

0:12:37.720 --> 0:12:41.000
<v Speaker 13>talks resuming at some point. I'm not sure exactly when

0:12:41.040 --> 0:12:43.800
<v Speaker 13>those will be, but certainly that window does allow for

0:12:43.920 --> 0:12:47.320
<v Speaker 13>some wiggle room. And I would say, you know, Carnie,

0:12:47.400 --> 0:12:49.760
<v Speaker 13>I think this was a strategic move from them to

0:12:49.920 --> 0:12:53.640
<v Speaker 13>very abruptly walk away from these talks, say these weren't

0:12:53.640 --> 0:12:57.640
<v Speaker 13>working for Canada and essentially put the US unusually on

0:12:57.679 --> 0:12:59.800
<v Speaker 13>the back foot. And how they're going to respond to this,

0:13:00.040 --> 0:13:03.280
<v Speaker 13>And so I think, again, because of the economic relationship

0:13:03.320 --> 0:13:07.440
<v Speaker 13>between these two countries that's very well known, there will

0:13:07.440 --> 0:13:09.200
<v Speaker 13>be talked to the resume at some point. But again,

0:13:09.280 --> 0:13:12.040
<v Speaker 13>the political statement I think is just as important, if

0:13:12.080 --> 0:13:14.600
<v Speaker 13>not more so, than the economic one at this point.

0:13:14.800 --> 0:13:18.679
<v Speaker 4>In terms of that political statement, do you see a

0:13:18.720 --> 0:13:22.319
<v Speaker 4>desire on the US side to get this resolved before

0:13:22.520 --> 0:13:25.439
<v Speaker 4>the November mid terms, given some of the comments you've heard,

0:13:25.440 --> 0:13:29.199
<v Speaker 4>in particular from the likes of Republican Senator Susan Collins

0:13:29.200 --> 0:13:31.880
<v Speaker 4>saying the impact that tariffs could have on her state.

0:13:32.200 --> 0:13:34.560
<v Speaker 13>Sure, I mean, a lot of northern states rely on

0:13:34.600 --> 0:13:37.400
<v Speaker 13>this trade relationship with Canada, and a lot of them

0:13:37.440 --> 0:13:41.680
<v Speaker 13>rely on energy relationships with Canada as well. And energy

0:13:41.720 --> 0:13:44.280
<v Speaker 13>sector we know is already feeling the squeeze from the

0:13:44.280 --> 0:13:46.959
<v Speaker 13>Iran war and whatnot. So even though not all these

0:13:47.000 --> 0:13:51.440
<v Speaker 13>sectors are immediately implicated in this first round, if this

0:13:51.520 --> 0:13:54.640
<v Speaker 13>does escalate further and deepen, these Northern states and the

0:13:54.720 --> 0:13:57.160
<v Speaker 13>US more broadly is going to feel the impacts of

0:13:57.200 --> 0:14:00.200
<v Speaker 13>this at a time when, you know, when that economics

0:14:00.240 --> 0:14:03.280
<v Speaker 13>is already coming from what's happening other parts.

0:14:03.040 --> 0:14:03.560
<v Speaker 5>Of the world.

0:14:04.640 --> 0:14:06.680
<v Speaker 4>Speaking of other parts of the world, let's talk about

0:14:06.720 --> 0:14:10.000
<v Speaker 4>Iran and the economic d day that Treasury Secretary Besson

0:14:10.080 --> 0:14:12.280
<v Speaker 4>says he's going to be announcing this afternoon. Do you

0:14:12.280 --> 0:14:16.079
<v Speaker 4>see further sanctions having an impact to get Iran back

0:14:16.120 --> 0:14:17.560
<v Speaker 4>to the negotiating table, You.

0:14:17.559 --> 0:14:19.520
<v Speaker 13>Know, Nathan, it's hard to say if that will have

0:14:19.560 --> 0:14:22.920
<v Speaker 13>an impact right now, largely because the US and many

0:14:22.960 --> 0:14:27.160
<v Speaker 13>other countries have had long standing strong sanctions against Iran

0:14:27.240 --> 0:14:31.000
<v Speaker 13>for years now. There were sanctions prior to the twenty

0:14:31.080 --> 0:14:35.000
<v Speaker 13>fifteen nuclear deal. Trump famously withdrew from that deal in

0:14:35.040 --> 0:14:38.960
<v Speaker 13>twenty eighteen and reimposed those sanctions. Countries like the UK

0:14:39.000 --> 0:14:41.920
<v Speaker 13>where Iron based, have very strong sanctions against Iran, and

0:14:42.000 --> 0:14:44.920
<v Speaker 13>so that sanctions regen has been in place for a while,

0:14:45.440 --> 0:14:48.400
<v Speaker 13>and that in itself is notable, but also that means

0:14:48.440 --> 0:14:51.080
<v Speaker 13>that Iran has found many ways to work around those

0:14:51.120 --> 0:14:54.880
<v Speaker 13>sanctions for years, whether through shadow fleets or through front

0:14:54.920 --> 0:14:57.480
<v Speaker 13>firms or what have you. I think what the US

0:14:57.560 --> 0:14:59.480
<v Speaker 13>is going to be trying to push forward this time

0:14:59.720 --> 0:15:02.640
<v Speaker 13>is pressuring other states that still do do business with

0:15:02.720 --> 0:15:06.080
<v Speaker 13>Iran to cease that. But even they're the countries that

0:15:06.200 --> 0:15:09.760
<v Speaker 13>do the most business with Iran, China, Turkey, Iraq, the

0:15:09.880 --> 0:15:13.120
<v Speaker 13>US's other interests with those countries that it would be

0:15:13.160 --> 0:15:16.920
<v Speaker 13>unlikely and just very difficult for them to somehow, you know,

0:15:17.320 --> 0:15:19.840
<v Speaker 13>do something drastic with China at this point to pressure

0:15:19.880 --> 0:15:22.400
<v Speaker 13>on that particular front. So my guess is this is

0:15:22.440 --> 0:15:25.720
<v Speaker 13>a way that Trump and the administration want to show

0:15:25.720 --> 0:15:28.120
<v Speaker 13>they are doing something on Iran. They're trying to move

0:15:28.160 --> 0:15:30.840
<v Speaker 13>this into an economic war, but even that, it's going

0:15:30.880 --> 0:15:31.760
<v Speaker 13>to be a long slog.

0:15:33.240 --> 0:15:36.400
<v Speaker 3>This is Bloomberg Daybreak, your morning podcast on the stories

0:15:36.440 --> 0:15:39.240
<v Speaker 3>making news from Wall Street to Washington and beyond.

0:15:39.600 --> 0:15:41.960
<v Speaker 4>Look for us on your podcast feed by six am

0:15:42.040 --> 0:15:45.480
<v Speaker 4>Eastern each morning, on Apple, Spotify, or anywhere else you listen.

0:15:45.640 --> 0:15:48.320
<v Speaker 3>You can also listen live each morning starting at five

0:15:48.360 --> 0:15:51.000
<v Speaker 3>am Wall Street Time on Bloomberg eleven three to zero

0:15:51.040 --> 0:15:53.880
<v Speaker 3>in New York, Bloomberg ninety nine to one in Washington,

0:15:53.920 --> 0:15:56.880
<v Speaker 3>Bloomberg ninety two to nine in Boston, and nationwide on

0:15:57.040 --> 0:15:59.200
<v Speaker 3>Sirius XM Channel one twenty.

0:15:58.920 --> 0:16:02.240
<v Speaker 4>One plus coast to coast on the Bloomberg Business App

0:16:02.280 --> 0:16:05.080
<v Speaker 4>now with Apple CarPlay and Android auto interfaces.

0:16:05.240 --> 0:16:08.120
<v Speaker 3>And don't forget to subscribe to Bloomberg News Now. It's

0:16:08.160 --> 0:16:10.600
<v Speaker 3>the latest news whenever you want it in five minutes

0:16:10.720 --> 0:16:13.640
<v Speaker 3>or less. Search Bloomberg News Now on your favorite podcast

0:16:13.680 --> 0:16:18.120
<v Speaker 3>platform to stay informed all day long. I'm Alexis Christophers.

0:16:17.680 --> 0:16:18.720
<v Speaker 5>And I'm Nathan Hager.

0:16:18.840 --> 0:16:20.880
<v Speaker 4>Join us again tomorrow morning for all the news you

0:16:20.920 --> 0:16:23.480
<v Speaker 4>need to start your day right here on Bloomberg Day

0:16:23.520 --> 0:16:23.720
<v Speaker 4>Rank