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

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 4: Karen, we begin with new developments on global trade. President

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Speaker 4: Trump has announced a deal with Japan that sets tariffs

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Speaker 4: on the country's imports into the US at fifteen percent.

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Speaker 4: The agreement spares Japan from a threatened twenty five percent

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Speaker 4: rate that was saved to take effect next week. Crucially

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Speaker 4: for Japan, the fifteen percent rate covers cars and car

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Speaker 4: parts exported to the US. In return, the country will

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Speaker 4: accept cars and trucks built to American safety standards. Here

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Speaker 4: is President Trump discussing the deal.

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Speaker 5: We worked on it long and hard, and it's a

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Speaker 5: great deal for everybody. I always say it has to

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Speaker 5: be great for everybody. It's a great deal. A lot

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Speaker 5: different from the deals in the past. I can tell

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Speaker 5: you that now.

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Speaker 4: A centerpiece of the deal is a five hundred and

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Speaker 4: fifty billion dollar fund backed by Japan to make investments

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Speaker 4: in the US. Details on that still to be hammered out.

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Speaker 4: Japan's also agreed to buy one hundred Boeing aircraft, boost

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Speaker 4: rice purchases, and increased defense spending with US firms. President

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Speaker 4: Trump is also pledging to guarantee Japan the lowest global

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Speaker 4: rate on forthcoming sectoral tariffs that's expected to include semiconductors

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Speaker 4: and pharmaceuticals.

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Speaker 3: He even shares in Japanese carmakers in Tokyo jumped on

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Speaker 3: the trade agreement. Toyota rose fourteen percent, Honta gained eleven percent,

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Speaker 3: and Nissan rose more than eight percent. Automakers also rising

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Speaker 3: in Europe. Shares and Mercedes and Porsia are at more

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Speaker 3: than five and a half percent.

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Speaker 6: And Karen.

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Speaker 4: The trade deal comes as Japan's and battled Prime Minister

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Speaker 4: she go to Aeshiba's denying reports he plans to step down.

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Speaker 4: These reports from Japanese media came days after Aeshiba's ruling

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Speaker 4: coalition suffered that historic setback in Sunday's Upper House election.

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Speaker 4: Yeshiba says there's no truth to the reports. They'd push

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Speaker 4: Japan's tenure government bond yield to its highest level since

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Speaker 4: two thousand and eight.

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Speaker 3: After months of uncertainty, President Trump's latest tariff deals, Nathan

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Speaker 3: are providing clarity on on a new trade landscape for

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Speaker 3: the world's biggest manufacturing region in East Asia. In addition

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Speaker 3: to the Japan deal, a separate agreement with the Philippines

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Speaker 3: at a nineteen percent rate, the same level as Indonesia

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Speaker 3: and a percentage point below Vietnam's twenty percent baseline. Meantime,

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Speaker 3: Treasury Secretary Scott Besson says he'll meet with his Chinese

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Speaker 3: counterparts in Stockholm next week for their third rounded talks

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Speaker 3: aimed at extending a tariff truce and widening their discussions.

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Speaker 3: China's Commerce ministry says Vice Premier Halifung will be in

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Speaker 3: Sweden for those talks and Karen.

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Speaker 4: President Trump is not letting up in his criticism of

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Speaker 4: FED chair Jay Powell. In a meeting with Republican lawmakers,

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Speaker 4: the President said Powell will only be in office for

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Speaker 4: a short while his term does expire in May, and

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Speaker 4: the President continued to hammer the chairman on interest rates

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Speaker 4: During his earlier Oval Office meeting with the Philippines, President

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Speaker 4: heard live on Bloomberg Radio.

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Speaker 5: People aren't able to buy a house because this guy

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Speaker 5: is a numbskull. He keeps the rich too high and

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Speaker 5: probably doing it for political reasons.

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Speaker 7: Now.

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Speaker 4: President Trump has said he has no plans to fire pal.

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Speaker 4: In an interview with Fox Business Treasury Secretary Scott Besson

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Speaker 4: said he sees no reason for the chairman to step

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Speaker 4: down now.

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Speaker 2: His term ends in May.

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Speaker 8: If he wants to see that through, I think he should.

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Speaker 2: If he wants to leave early, I think he should.

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Speaker 4: Secretary Besson says the Fed should also do an internal

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Speaker 4: review of its non monetary policies. He says that could

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Speaker 4: be Powell's legacy. In other news this morning, Karen the

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Speaker 4: Justice Department says it wants to interview Jeffrey Epstein's former girlfriend,

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Speaker 4: Glaine Maxwell. She is currently serving twenty years in prison

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Speaker 4: for helping the late financier sexually abuse underage girls. The

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Speaker 4: move comes after a fierce backlash from parts of President

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Speaker 4: Trump's base over his earlier refusal to release additional records

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Speaker 4: about Epstein. Attorney General Pam Bondi has asked two federal

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Speaker 4: judges to unseal grand jury testimony in the Epstein and

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Speaker 4: Maxwell investigations. The judges have ordered the government to lay

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Speaker 4: out the special circumstances that would justify releasing those secret transcripts.

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Speaker 4: Glenn Maxwell's lawyer, meanwhile, confirms they are in discussions with

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Speaker 4: the DOJ on an interview. In a statement, the lawyer says, quote,

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Speaker 4: we are grateful to President Trump for his commitment to

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Speaker 4: uncovering the truth in this case.

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Speaker 3: Nathan, we have new developments this morning involving the global

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Speaker 3: hack involving Microsoft software, and Bloomberg's John Tucker joins US

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Speaker 3: Live with the very latest. John.

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Speaker 2: Good morning, Yeah, Good morning, Karen.

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Speaker 9: The US agency that's responsible for maintaining and designing the

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Speaker 9: nation's nuclear weapons was among those breach by the hack

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Speaker 9: of Microsoft's Sharepoints software, and our sources tell us no

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Speaker 9: sensitive or classified information is known to have been compromised

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Speaker 9: in the attack on the National Nuclear Security Administration, but

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Speaker 9: former Deputy National Security Advisor and Newberger tells Bloomberg Balance

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Speaker 9: of Power, this is a big.

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Speaker 10: Deal because SharePoint is so widely used, we can expect

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Speaker 10: likely a fair number of victims, and the vulnerability is

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Speaker 10: a major one, so attackers can not only steal data,

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Speaker 10: they're stealing keys.

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Speaker 9: Microsoft has blamed Chinese states sponsored hackers for the attacks.

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Speaker 9: The hackers have stolen signing credentials including user names, passwords,

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Speaker 9: hash codes, and tokens. In New York, I'm John Tucker,

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Speaker 9: Bloomberg Radio.

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Speaker 4: Thanks John. Turning to Markets Now Stocks begin the day

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Speaker 4: at record highs on trade optimism and ahead of earnings

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Speaker 4: from the first of the Magnificent Seven companies. Bloomberg's Charlie

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Speaker 4: Pellett begins our team coverage with a look at what

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Speaker 4: to expect today from Google parent Alphabet.

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Speaker 2: Alphabet's results are expected to bolster sentiment about its position

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Speaker 2: in artificial intelligence. Anna Rothbund is the CEO of Grenadilla Advisory.

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Speaker 3: I don't know about you, but when I talk to

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Speaker 3: my friends, they stop using Google as a search engine.

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Speaker 10: They're using chat GPT.

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Speaker 2: According to data compiled by Bloomberg for the second quarter,

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Speaker 2: Alphabet is expected to report net earnings of two to

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Speaker 2: eighteen a share on revenue of nearly eighty billion dollars

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Speaker 2: in New York. Charlie Pellett Bloomberg Radio.

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Speaker 3: Right, Thanks Charlie. The Alphabet earnings will come after the

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Speaker 3: closing bill, and that's what we'll also hear from Tesla.

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Speaker 3: Hell Love. Bloomberg's Tom Busby continues our team coverage with

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Speaker 3: a preview of the ev maker.

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Speaker 11: After reporting earlier this month at Q two, deliveries were

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Speaker 11: down thirteen percent from a year ago. Mini analysts are

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Speaker 11: worried about Tesla reporting a second straight year of declining

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Speaker 11: deliveries the mid ongoing sales slumps here in the US

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Speaker 11: as well as in China and Europe. Investors will be

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Speaker 11: watching though, for updates on its outlook for the full

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Speaker 11: year and information about itself driving robotaxi efforts and the

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Speaker 11: long delayed plans for a more affordable EV model. Bloomberg

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Speaker 11: consensus calls for revenue of twenty two point five to

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Speaker 11: four billion on adjusted earnings per share of forty two cents.

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Speaker 2: Tom buzby Bloomberg Radio.

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Speaker 4: Okay, Tom, thank you, as we await those banks seven

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Speaker 4: earnings and other tech companies taking it on the chin

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Speaker 4: this morning. Shares of Texas Instruments are now down more

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Speaker 4: than twelve percent. The chip maker came out with an

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Speaker 4: outlook more guarded than some investors anticipated.

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Speaker 3: Time now for a look at some of the o

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Speaker 3: their stories making news in New York and around the world,

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Speaker 3: and for that we're joined by Bloomberg's Michael Barr Michael,

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Speaker 3: good morning.

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Speaker 7: Good morning. In a dangerous heat wave in the nation

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Speaker 7: moves east, Bloomberg meeting religious Craig Allen.

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Speaker 6: Extreme heat is the big story once again as a

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Speaker 6: heat dome builds over the central and eastern portion of

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Speaker 6: the United States. Right now, we have about eighteen states

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Speaker 6: with a heat advisory, as well as about a half

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Speaker 6: a dozen states with an excessive heat warning.

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Speaker 7: Bloomberg Meeting religious Craig Allen says about eighty million people

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Speaker 7: are under some kind of heat alert. Attorney General Pam

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Speaker 7: Bondi removed a US attorney for New Jersey, Desiree Grace,

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Speaker 7: that had been named by federal judges to replace President

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Speaker 7: Trump's choice. The move came after judges decline to extend

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Speaker 7: the tenure of the President's appointee, Alina Habba, whose four

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Speaker 7: month tenure has been marked by controversy. WDAG Todd Lanch

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Speaker 7: defended Haba, saying that judges act at lyng activists. Investigators

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Speaker 7: say a fire that killed ten people at of Massachusetts

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Speaker 7: Assistant Living facility was caused by smoking or an oxygen

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Speaker 7: machine's electrical problem. The Massachusetts Fire Marshals said that the

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Speaker 7: July thirteenth blaze at Gabriel House spread quickly due to

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Speaker 7: the presence of medical oxygen. Bristol County District Attorney Thomas Quinn.

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Speaker 12: It was clear after a preliminary examination of the scene

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Speaker 12: and initial interviews that the fire did not appear to

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Speaker 12: have been set intentionally.

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Speaker 7: Da Quinn says the Gabriel House had been home to

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Speaker 7: about seventy people. We've lost the prints of darkness. Flowers

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Speaker 7: and photos now surround Ozzie Albourne's star on the Hollywood

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Speaker 7: Walk of Fame as fans stopped to pay tribute to

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Speaker 7: the heavy metal singer. Osborne died yesterday. Greg Harris is

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Speaker 7: the president and CEO of the Rock and Roll Hall

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Speaker 7: of Fame.

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Speaker 8: He also achieved pop culture status with the Osbourne's reality show.

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Speaker 8: We got to know him as a human being and

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Speaker 8: a bit of his humors side, and what an interesting

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Speaker 8: character and just a warm individual.

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Speaker 7: Ozzy Osbourne was seventy six Global news twenty four hours

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Speaker 7: a day and whenever you want it with Bloomberg News

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Speaker 7: Now Michael Barr, and this is Bloomberg Carrot.

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Speaker 3: All right, Michael Barr, thank you time now for the

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Speaker 3: Bloomberg Sports Update. Here's John stash Hour, John, good morning.

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Speaker 13: Good morning, Karen. That Toronto Blue Jays had not lost

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Speaker 13: a home game in a month, eleven wins in a row,

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Speaker 13: five of those coming against the Yankees. It's why the

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Speaker 13: Jays had gone four games ahead. In the Al East,

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Speaker 13: the Yanks took the lead a jazz chishom three went

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Speaker 13: over first inning, but another blown lead Toronto tied it

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Speaker 13: up with the help of another Anthony Volpi air Is

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Speaker 13: league leading thirteenth four to four game.

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Speaker 7: Top of the ninth inning.

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Speaker 2: High plod ball right field and Deep Lucas back.

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Speaker 13: On the truck.

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Speaker 2: See y'all.

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Speaker 13: A huge home run for Ben Rice has the Yankees

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Speaker 13: take a five poor lead.

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Speaker 12: How Ben Rice got a look at Hoffmann last night

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Speaker 12: and he did not waste any time, knowing he's going

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Speaker 12: to get a fastball at some point.

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Speaker 2: He got it on the first pitch and he did

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Speaker 2: not miss.

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Speaker 13: It on the S network. Gangs one five to four,

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Speaker 13: and they'll have Max Freed going tonight. His first outing

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Speaker 13: since the start ten days ago was cut short due

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Speaker 13: to a blister.

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Speaker 7: The Mets at.

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Speaker 13: City Field, down to nothing, came back beat the Angels

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Speaker 13: three to two, helped by a Francisco Alvarez two run homer.

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Speaker 13: He even banished to the miners where he belt at

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Speaker 13: eleven homers. Earning the trip back Philly stay half game ahead.

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Speaker 13: They beat the Red Slots.

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Speaker 7: Four to one.

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Speaker 13: Stops are one and three since that ten game winning street.

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Speaker 13: The Nationals beat the Red six to one. Milwaukee's eleven

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Speaker 13: game winning streak ended with a one nothing loss in Seattle.

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Speaker 13: Only run of the game, Cal Rawley's thirty ninth home

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Speaker 13: run at Barkley's. Liberty beat the Fever ninety eight eighty

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Speaker 13: four at the Nistel without the injured Caitlin Clark.

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Speaker 7: That's the liberties fourth straight win.

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Speaker 13: The now sixteen and six NFL training camps are opened.

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Speaker 13: The Bengals Trey Hendrickson and no show thirty five sacks

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Speaker 13: over the last two seasons, and yet Cincinnati offering a

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Speaker 13: new contract that has only one year. Game Garanteed and

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Speaker 13: Terry mclaura on the Commander's Top White app also a

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Speaker 13: no show. Tennis in Washington, a first round victory for

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Speaker 13: forty five year old Venus Williams, her first win in

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Speaker 13: two years. She's the second oldest ever to win a match.

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Speaker 13: Her opponent is twenty two. She was born after Venus

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Speaker 13: had won four Grand Sliam titles. John Stasheller, Bloomberg Sports

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Speaker 13: Karen 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 4: Good morning, I'm Nathan Hager. With nine days to go

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Speaker 4: until the tariff deadline, President Trump is touting what he

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Speaker 4: says may be his biggest deal yet.

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Speaker 5: I just signed the largest trade deal in history, I

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Speaker 5: think maybe the largest deal of history with Japan.

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Speaker 4: President broke the news to a room of Republican lawmakers

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Speaker 4: at the White House last night, announcing a fifteen percent

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Speaker 4: tariff freight on Japanese imports into the US, as well

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Speaker 4: as a five hundred and fifty billion dollar invest and

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Speaker 4: fund joining us. For the latest on this is Bloomberg's

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Speaker 4: Jill Desis in Hong Kong. Of course, Jill, they've been

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Speaker 4: hearing that Japan could face a twenty five percent teriff

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Speaker 4: right before this deal was announced, obviously much lower. What

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Speaker 4: more can you tell us?

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Speaker 14: Good morning, Good morning, Nathan. Yes, I think with this

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Speaker 14: particular deal, obviously, you know there's going to be some

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Speaker 14: time to adjust to a fifteen percent tariff rate, given

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Speaker 14: that's just, you know, higher than anything it was before.

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Speaker 14: But if you're Japan, this is still much better than

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Speaker 14: where things seemed like they were trending. I mean, first

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Speaker 14: of all, we had after the Liberation Day tariffs from

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Speaker 14: Trump were announced at the beginning of April, we were

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Speaker 14: thinking somewhere in the twenty four percent range, and then

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Speaker 14: he actually crept up a bit in recent weeks threatening

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Speaker 14: a twenty five percent tariff. So this does seem like

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Speaker 14: on its face, you know, a little bit of relief

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Speaker 14: in terms of you know, if you're an investor, you're

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Speaker 14: seeing a little bit of that uncertainty lifted. You know,

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Speaker 14: we certainly saw that impact with stocks in Japan today,

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Speaker 14: particularly those automakers seeing some spikes. I think though, you know,

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Speaker 14: with something like this, obviously you have to see how

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Speaker 14: exactly everything develops. Some particularly keen on learning more about

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Speaker 14: this five hundred and fifty billion dollar fun to make

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Speaker 14: investments in the United States that we're still not entirely

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Speaker 14: sure how exactly this is going to be funded. Japan

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Speaker 14: has agreed to provide these funds to invest in projects

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Speaker 14: in America. I think the timeline still has to be

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Speaker 14: you know, spelled out a little bit more, but it's

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Speaker 14: surely has to come again as a relief to investors

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Speaker 14: watching the space because a lot of those threats on

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Speaker 14: automakers in particular. I mean, when we're talking about twenty

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Speaker 14: five percent, that's incredibly high. And so again it does

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Speaker 14: alleviate that a little bit, but you know, it still

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Speaker 14: has a lot of things when it comes to Trump

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Speaker 14: and flex. So we'll see where we go from here.

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Speaker 4: These talks had been so sticky before the results of

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Speaker 4: last weekend's election in Japan. Was the loss for Shigaru

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Speaker 4: Ashiba's ruling party, it was sort of a kick in

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Speaker 4: the pants for Japan to get this done.

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Speaker 14: Yeah, I mean, look, I think when it comes to

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Speaker 14: these Japan elections, so essentially, you know, Prime Minister sugar

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Speaker 14: Isshibo was already a bit on the back foot after

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Speaker 14: he came into power last year. You know, his party

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Speaker 14: did suffer defeats in the lower house elections. Then we

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Speaker 14: saw this upper house election not go his way over

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Speaker 14: the weekend. I mean, you know, really really critical blow

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Speaker 14: there and has raised a lot of questions about whether

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Speaker 14: or not he can actually maintain power in japanic that's

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Speaker 14: still a really open question. One thing he did say

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Speaker 14: was that he would hold on until you know, at

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Speaker 14: least see he a critical part of this was getting

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Speaker 14: this trade deal over the line. Now that that's done,

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Speaker 14: obviously raising a lot of speculation about how long he

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Speaker 14: continues to stay on.

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Speaker 6: Yeah, certainly.

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Speaker 4: I mean there are reports in Japan that he already

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Speaker 4: made a decision to resign, maybe this month or next.

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Speaker 4: I guess he's pushing back on that now.

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Speaker 14: Yes, that's right, so essentially so, local media reports came

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Speaker 14: out saying that he had actually met with some of

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Speaker 14: his predecessors and discussed the timeline potentially stepping down. Those

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Speaker 14: local media reports are saying by the end of August.

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Speaker 14: Perhaps he just came out this afternoon and denied those

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Speaker 14: media reports. But I do have to say when you

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Speaker 14: put a loss like he suffered in parliament, you know,

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Speaker 14: his party suffered in Parliament over the weekend in context.

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Speaker 14: I mean, first of all, you know, fifty five years

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Speaker 14: since you know this, this ruling party has lost control

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Speaker 14: of both of those chambers. When we have seen critical

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Speaker 14: losses for prime ministers of the ruling party in the past,

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Speaker 14: they really only hold on for maybe a couple of

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Speaker 14: months at most. So I do think that, you know,

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Speaker 14: while he is pushing back against this, the fact that

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Speaker 14: you have this really critical trade deal apparently you know

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Speaker 14: done and dusted, although again I think we have to

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Speaker 14: leave that open a little bit, but apparently done and dusted.

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Speaker 14: I mean, I think that it doesn't mean that pressure

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Speaker 14: on him to resign, that clearly goes away.

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