Speaker 1: News when you want it with Bloomberg News now, I'm
Speaker 1: Doug Prisner. The trade war between the US and China
Speaker 1: is said to become more intense than just after midnight
Speaker 1: Eastern Time. That's when new tariffs will take effect on
Speaker 1: many Chinese goods at a rate of one hundred and
Speaker 1: four percent. Now, President Trump is pushing forward after China
Speaker 1: set it. We'll fight to the end if the US
Speaker 1: insist on new tariffs. Tonight in Washington, Trump touted his tariffs.
Speaker 2: We're making a fortune with tariffs, two billion dollars a day.
Speaker 2: Do you believe it? I was spelled two billion dollars
Speaker 2: a day. You know, I got hit by the press
Speaker 2: about tariffs. We're making two billion billion. This is in
Speaker 2: thirty five million. That's peanuts, two billion dollars a day.
Speaker 2: And then they say gee that or no, you know,
Speaker 2: this is only the enemy can be talking this way.
Speaker 2: In addition, we have a lot of countries coming to
Speaker 2: see as they want to make a deal.
Speaker 1: Trump also said countries are sending trade delegations to Washington
Speaker 1: to negotiate on trade deals, and he said the prospect
Speaker 1: of a deal with South Korea was looking good. After
Speaker 1: a phone conversation with Acting President Handuk Su. By the way,
Speaker 1: the White House said nearly seventy other countries have reached
Speaker 1: out to strike deals. The stock market declined today and
Speaker 1: the S and P five hundred narrowly missed falling into
Speaker 1: a bear market. The standoff between the US and China
Speaker 1: produced a lot more volatility and in the end more selling.
Speaker 1: We had the S and P dropping one point six
Speaker 1: percent today, breaking below five thousand. Mark Stephan is global
Speaker 1: alternative investment strategist at the Wells Fargo Investment Institute.
Speaker 3: Uncertainty it just continues. But despite just the volatility that
Speaker 3: we see in market today, we're telling clients and investors
Speaker 3: to just remain discipline, remain patient, you know, try to
Speaker 3: rebalance to their target allocations during these periods of times,
Speaker 3: you know, ensure that you know they're adequately diversified across
Speaker 3: different asset classes, and just to kind of remain focused on.
Speaker 1: The long term. Mark Stephan there from the Wells Fargo
Speaker 1: Investment Institute. Meantime, the head of the San Francisco Fed,
Speaker 1: Mary Daily, was saying today the Central Bank can take
Speaker 1: its time before making any adjustments to interest rates, as
Speaker 1: the Fed waits to see how trade policy changes play out.
Speaker 1: Here's Daily speaking earlier at Bring Them Young University in Provo, Utah.
Speaker 4: We've got policy in a very good place right now.
Speaker 4: We cut the interest rate by one hundred basis points
Speaker 4: last year. That puts policy at a good place to
Speaker 4: stay modestly restrictive, keep inflation coming down, but not so
Speaker 4: restrictive that the economy is vulnerable. So with growth good
Speaker 4: and policy at a good place, you've built the time and
Speaker 4: the ability to just be tread slowly and tread carefully.
Speaker 1: Mary Daily there, she is the head of the San
Speaker 1: Francisco FED. She went on to say the FED would
Speaker 1: need to assess the combined impact of the administration's policies
Speaker 1: on trade, taxes, and regulation in order to get a
Speaker 1: clearer picture of the way forward for the American economy. Now.
Speaker 1: Trump's tariffs have prompted a number of analysts to lower
Speaker 1: estimates for economic growth this year, and at the same
Speaker 1: time they have raised their projections for inflation. You might
Speaker 1: recall last week Fedchair J Powell said the impact of
Speaker 1: new tariffs is likely to be significantly larger than expected,
Speaker 1: and he said the FED must make sure price increases
Speaker 1: do not lead to an ongoing inflation problem. We go
Speaker 1: to Texas next, where the state's Attorney General Ken Paxton
Speaker 1: is now running to unseat Senator John Cornyan in next
Speaker 1: year's Republican primary. Here is Paxton making the announcement earlier
Speaker 1: on Fox News.
Speaker 5: It's definitely timed for a change in Texas. We have
Speaker 5: another great US Senator, Ted Cruz, and it's time we
Speaker 5: have another great senator that will actually stand up and
Speaker 5: fight for Republican values, fight for the values of the
Speaker 5: people of Texas, and also support Trump Donald Trump in
Speaker 5: the areas that he's focused on in a very significant way.
Speaker 1: That was Texas Attorney General Ken Paxton speaking to Fox
Speaker 1: News Now. Paxton previously said Cornan has not been supportive
Speaker 1: of President Trump's policies, but the campaign said he's been
Speaker 1: with Trump more than ninety five percent of the time.
Speaker 1: Cornyn's campaign also accused Paxton of being a fraud. The
Speaker 1: Trump administration has frozen federal grants to Northwestern University and
Speaker 1: Cornell University. We are told the administration has paused one
Speaker 1: point zero five billion dollars to Cornell and seven hundred
Speaker 1: and ninety million dollars to Northwestern. Now, this follows similar
Speaker 1: moves against Columbia, Harvard, and Princeton. The administration's actions are
Speaker 1: part of a broader crackdown on colleges and universities, with
Speaker 1: President Trump citing concerns over anti semitism and free speech.
Speaker 1: And that is news when you want it with Bloomberg News. Now,
Speaker 1: I'm Doug prisoner, and this is Bloomberg