WEBVTT - Major US Tariff Rates Take Effect; Trump-Putin Summit Scheduled

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

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

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

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<v Speaker 1>Karen, we begin with the latest on the Trump administration's

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<v Speaker 1>trade policy. President Trump announced on social media that his

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<v Speaker 1>sweeping new tariffs are in effect as of midnight East

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<v Speaker 1>Coast time, targeting what he calls countries that have taken

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<v Speaker 1>advantage of the United States for many years. The move

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<v Speaker 1>pushes US tariff rates to their highest level since World

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<v Speaker 1>War Two. Bloomberg's Bill Ferries says the ultimate goal of

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<v Speaker 1>on shoring manufacturing jobs could have secondary effects.

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<v Speaker 3>The US average tariff rate is now just over fifteen percent,

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<v Speaker 3>and it was below two point three percent last year

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<v Speaker 3>before President Trump took office. So from two percent to

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<v Speaker 3>fifteen percent certainly at some point that is going to

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<v Speaker 3>really wind its way through the US economy and show

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<v Speaker 3>up on the shelves of stores.

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<v Speaker 1>Bloomberg's Bill Ferry says trading partners including the European Union, Japan,

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<v Speaker 1>and South Korea negotiated a fifteen percent tariff right Switzerland

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<v Speaker 1>was assigned the highest tariff of any developed nation at

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<v Speaker 1>thirty nine percent after failing to reach a deal. When

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<v Speaker 1>its president visited Washington for an emergency visit yesterday.

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<v Speaker 2>And Nathan, the president assigned a much higher tariff on

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<v Speaker 2>monkey trading partner India. President Trump said yesterday he plans

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<v Speaker 2>to double tariffs on Indian goods to fifty percent as

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<v Speaker 2>a penalty for buying Russian oil.

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<v Speaker 4>As you know, we put a fifty percent tariff on

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<v Speaker 4>India on oil. They're the second largest, so very close

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<v Speaker 4>to China in terms of the purchase of oil from Russia.

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<v Speaker 3>Why are you singling India out for these additionals.

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<v Speaker 4>It's only been eight hours, so let's see what happens

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<v Speaker 4>over the next one. You're going to see a lot more.

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<v Speaker 4>So this is president, You're going to see a lot more.

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<v Speaker 2>President Trump added he may also punish China with additional

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<v Speaker 2>tariffs over its purchases have crued from Russia. Negotiations with

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<v Speaker 2>China are still ongoing, along with the US's other two

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<v Speaker 2>largest trade partners, Mexico and Canada.

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<v Speaker 1>Meanwhile, Karen, speaking of Russia, President Trump told reporters there's

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<v Speaker 1>a very good chance he'll meet President Vladimir Putin and

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<v Speaker 1>Ukraine's Vladimir Zelenski soon and another bid to broker piece.

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<v Speaker 1>The Kremlin says an agreement is in place for the

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<v Speaker 1>US and Russian presidents to meet in the coming days,

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<v Speaker 1>the location still to be determined', according to the Interfax

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<v Speaker 1>News service. In the Oval Office, President Trump addressed a

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<v Speaker 1>meeting between Putin and US Special ENVOYE.

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<v Speaker 5>Steve Whitcoff in Moscow.

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<v Speaker 4>We had some very good talks with President Putin today

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<v Speaker 4>and there's a very good chance that we could be

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<v Speaker 4>ending the ending the round, ending the end of that road.

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<v Speaker 4>Road was long and continues to be long. But there's

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<v Speaker 4>a good chance that there will be meeting very soon.

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<v Speaker 4>Excuse me, do you think you are sometimes people? Well, look,

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<v Speaker 4>I don't want to say I've been disappointed before.

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<v Speaker 5>President Trump informed allies he was positive about the possibility

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<v Speaker 5>of a sea firing Ukraine.

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<v Speaker 2>Well. Turning back to trade Nathan, President Trump additionally declared

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<v Speaker 2>plans for a new one hundred percent tariff on semiconductor imports.

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<v Speaker 2>Standing next to Apple's CEO Tim Cook and the Oval Office,

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<v Speaker 2>the President said the aim is to bring manufacturing back

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<v Speaker 2>to the US.

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<v Speaker 4>We'll be putting a terraphone of approximately one hundred percent

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<v Speaker 4>on chips and semiconductors, but if you're building in the

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<v Speaker 4>United States of America, there's no charge.

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<v Speaker 2>And in light of President Trump's announcement, companies including Apple, TSMC,

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<v Speaker 2>and Nvidia pledge to spend more than one trillion dollars

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<v Speaker 2>collectively in the US.

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<v Speaker 1>And part of that pledge from Apple Karen is a

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<v Speaker 1>promise to onshore one hundred percent of iPhone and watch

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<v Speaker 1>cover glass production in the US. It's part of an

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<v Speaker 1>expanded two and a half billion dollar partnership with Corning.

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<v Speaker 4>This is a significant step toward the ultimate goal of

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<v Speaker 4>ensuring that iPhone sold in the United States of America

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<v Speaker 4>also are made in America.

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<v Speaker 1>The President Trump singled out Apple as an example of

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<v Speaker 1>how to avoid increased levies, saying quote apples coming back

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<v Speaker 1>to America. CEO Tim Cook did tell the President that

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<v Speaker 1>final iPhone assembly will be elsewhere for a while.

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<v Speaker 2>Let's turn to the airline industry now, Nathan and the

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<v Speaker 2>tech issue grounding it outed air flights across major US airports.

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<v Speaker 2>United Airlines announced it's resuming flights after fixing a tech

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<v Speaker 2>issue that temporarily delayed hundreds of flights. The airline said

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<v Speaker 2>the underlying technology issue has been resolved, and while we

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<v Speaker 2>expect residual delays, our team is working to restore our

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<v Speaker 2>normal operations. That being a quote. A United spokesman said

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<v Speaker 2>the outage was not related to recent instances of cybersecurity

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<v Speaker 2>issues in the airline industry.

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<v Speaker 1>Turning to the broader economy, now Karen three Federal Reserve

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<v Speaker 1>officials are voicing fresh concerns over the labor market and

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<v Speaker 1>signaling a potential rate cut next month. San Francisco FED

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<v Speaker 1>President Mary Daily says policymakers need to prevent further deterioration

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<v Speaker 1>in the labor market.

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<v Speaker 6>Once the labor market stumbles, it falls, and it falls quickly,

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<v Speaker 6>and it falls hard. So you don't want to get

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<v Speaker 6>into that situation. So all this means, as you put

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<v Speaker 6>it together, that I think will you'd likely need to

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<v Speaker 6>adjust the policy rate sometime in the coming months.

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<v Speaker 1>San Francisco FED President Mary Daly's comments followed rhetoric from

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<v Speaker 1>Fed Governor Lisa Cook. She says downward revisions in the

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<v Speaker 1>jobs report are typical of turning points in the economy,

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<v Speaker 1>and Minneapolis Fed President Neil Cashcari told CNBC he expects

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<v Speaker 1>two interest rate cuts before the end of the year.

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<v Speaker 2>Well let's go to other FED news. Nathan. President Trump

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<v Speaker 2>indicated he'll likely nominate a temporary Federal Reserve governor within

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<v Speaker 2>the coming days. The President said he's considering probably three

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<v Speaker 2>candidates for the temporary position if ied. Announced on Friday

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<v Speaker 2>that FED Governor Adriana Coogler would resign from her seat

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<v Speaker 2>on the Bord of Governors before her term is up

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<v Speaker 2>in January.

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<v Speaker 1>And in earnings News, Karen topgall Callaway brands rose after

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<v Speaker 1>boosting guidance and saying promotions helped increase customer visits at

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<v Speaker 1>its venues. The golf company's Top Golf unit beat as

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<v Speaker 1>increased promotions in the quarter, like frozen margaritas and half

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<v Speaker 1>off golf during the week.

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<v Speaker 5>We're enough to lure swingers.

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<v Speaker 1>In CEO Arty Stars, says Top Golf Summer pass is

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<v Speaker 1>selling more than twice what it was offered three years ago.

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

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

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<v Speaker 2>and for that rejoined by Blueberry's John Tucker. John, Good

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<v Speaker 2>Morning Man.

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<v Speaker 7>Good morning Karen. The Trump administration is offering to simplify

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<v Speaker 7>its lawsuit with Harvard University. The shift is the latest

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<v Speaker 7>twist in the litigation over the government's attempt to revoke

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<v Speaker 7>Harvard's ability to enroll international students, citing claims of campus

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<v Speaker 7>anti Semitism and alleged ties to the Chinese Communist Party.

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<v Speaker 7>UCLA has entered into negotiations with the administration trying to

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<v Speaker 7>re state about four hundred and eighty four million dollars

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<v Speaker 7>in frozen federal research funding. The move comes after the

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<v Speaker 7>Trump Justice Department had given the school a Tuesday deadline

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<v Speaker 7>to enter into a resolution agreement. Five people are hurt

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<v Speaker 7>after an Army sergeant open fire and fellow soldiers at

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<v Speaker 7>Fort Stewart in Georgia. The a Q shooter now under arrest.

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<v Speaker 7>No word on a motive for the shooting or how

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<v Speaker 7>the shooter got his personal weapon onto the base. An

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<v Speaker 7>outbreak of Legionnaire's disease in Central Harlem in New York

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<v Speaker 7>that has now caused three deaths. Let's get more from

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<v Speaker 7>Bloomberg's Charlie Pellett.

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<v Speaker 8>Health officials are still trying to track down the source,

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<v Speaker 8>and the New York City Health Department says scores have

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<v Speaker 8>been sickened from the Legionella bacteria. The outbreak was identified

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<v Speaker 8>in central Harlem in late July after a handful of

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<v Speaker 8>people presented pneumonia like symptoms and tested positive for the disease.

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<v Speaker 8>Health officials have been testing nearby cooling towers as a

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<v Speaker 8>likely source of the bacteria and have found some positive

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<v Speaker 8>result VOLTZ in New York, Charlie Pellett Bloomberg Radio.

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<v Speaker 7>And Steve Bennon, a senior advisor to President Trump in

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<v Speaker 7>his first term and an influential voice in conservative circles,

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<v Speaker 7>is pushing for EJ. And Tony to lead the Bureau

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<v Speaker 7>of Labor Statistics. Antonis chief economist at the Conservative Heritage Foundation.

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<v Speaker 7>Trump fired the BLS commissioner on Friday after a week

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<v Speaker 7>jobs number of Bennon's podcast, and Tony added that the

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<v Speaker 7>absence of a Trumpet pick running the agency is part

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<v Speaker 7>of the reason why we continue to have all these

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<v Speaker 7>different data problems. Global News twenty four hours a day

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<v Speaker 7>and whatever you wanted with Bloomberg News. Now, I'm John

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<v Speaker 7>Tucker and this is Bloomberg Karen.

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<v Speaker 2>All right, John, thank you time now for the Bloomberg

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<v Speaker 2>Sports update. Here's John stash Hour, John, Good morning.

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<v Speaker 5>Good morning, Daren.

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<v Speaker 9>The Yankees were out to avoid in oh in six

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<v Speaker 9>roads if they hadn't gotten swept in Texas in fifteen years.

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<v Speaker 9>They beat the Rangers three to two on Paul Goldsmith's

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<v Speaker 9>pinch hit home run seventh inning of lefty reliever Robert Garcia.

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<v Speaker 9>Goldsmid against lefty pitching is batting over four hundred is

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<v Speaker 9>average versus right handers is just two thirty. It was

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<v Speaker 9>a game where cousins both pitched. Jack Lighters started for Texas.

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<v Speaker 9>Mark Lighter pitched generally for the Yanks. Matts got swept

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<v Speaker 9>by the Guardians and at City Field, Cleveland's Gavin.

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<v Speaker 5>Williams was two outs from a no hitter high fly.

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<v Speaker 10>Ball seventeen on how Martinez on the track hit the

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<v Speaker 10>wall to the pits Soto in the second base with

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<v Speaker 10>a double k. Now, they're going to say it did

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<v Speaker 10>clear defense and went out of the fourth for a

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<v Speaker 10>home run, and Soto ends the Big Rigs Big for

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<v Speaker 10>a no hitter with a solo homer in the bottom.

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<v Speaker 2>Of the nine.

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<v Speaker 9>I'm Guardian CD the Big Rig the nickname for the

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<v Speaker 9>six foot six inch Williams who threw one hundred and

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<v Speaker 9>twenty six pitches.

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<v Speaker 5>The Guardians won the game four.

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<v Speaker 9>To one at Fenway, Kansas City ended the Red Sox

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<v Speaker 9>seven game wins Drink seven to three in DC Nationals

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<v Speaker 9>end of the six game losing streak two to one

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<v Speaker 9>over the A's in Denver, Toronto won twenty to one.

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<v Speaker 9>The Blue Jays swept the series from the Rockies by

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<v Speaker 9>a combined score of forty five to six. There's sixty

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<v Speaker 9>three hit since, the most a team has had in

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<v Speaker 9>a three game series since at least nineteen hundred. NFL

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<v Speaker 9>preseason tonight, including the Raiders and Seahawks in Seattle, so

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<v Speaker 9>the first game for Las Vegas's new coach, seventy three

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<v Speaker 9>year old Pete Cattle is back where perrel coast for

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<v Speaker 9>fourteen years. The Patriots played the Commanders tomorrow in Foxborough.

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<v Speaker 9>Two teams at a joint practice and a fight broke

0:10:35.160 --> 0:10:38.200
<v Speaker 9>out in the New Patriots coach Mike Rabel jumped in

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<v Speaker 9>to help break it up emerged with a bloody face.

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<v Speaker 5>John Staneshawer Bloomberg Sports.

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<v Speaker 6>Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 6>and around the world on Bloomberg dot Com and the

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<v Speaker 6>Bloomberg Business app.

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<v Speaker 5>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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<v Speaker 1>After months of threats, reversals, negotiations and prices, President Donald

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<v Speaker 1>Trump's sweeping new tariffs on almost every US trading partner

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<v Speaker 1>are now in effect, and now investors, companies and global

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<v Speaker 1>leaders are bracing for impact. Fabian A Fideli, a CIO

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<v Speaker 1>for Multi Asset and Sustainability at MNG Investments.

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<v Speaker 11>Until now, we really haven't seen the impact of tariffs

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<v Speaker 11>on markets besides some uncertainty among the companies, and our

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<v Speaker 11>concern is that going forward we are starting to see

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<v Speaker 11>some of that impact, and so we'll have to see

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<v Speaker 11>how the next six months spent out.

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<v Speaker 1>That's Fabia Fidelli with MG Investments from War We're joined

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<v Speaker 1>by Bloomberg's Jill Desis.

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<v Speaker 5>Jill, Good morning.

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<v Speaker 1>The change is here and now at least what we

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<v Speaker 1>do know is tariff rates in this country are now

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<v Speaker 1>as high as they've been since World War Two. Walk

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<v Speaker 1>us through the change. Good morning, Yes, good morning, Nathan.

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<v Speaker 12>Well, I think really to kind of drive that point home,

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<v Speaker 12>you just look at what the average US tariff rate

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<v Speaker 12>is right now under these latest Trump actions. So Bloomberg

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<v Speaker 12>Economics estimates it's now up to fifteen point two percent.

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<v Speaker 12>Just for comparison's sake. Last year it was two point

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<v Speaker 12>three percent. So I mean we're talking massive, massive jumps

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<v Speaker 12>in terms of how much these you know, sort of

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<v Speaker 12>so called reciprocal tariffs that Trump has handed down really

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<v Speaker 12>really going to impact how global trade is shaped here.

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<v Speaker 12>All that being said, I mean, look, there are some

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<v Speaker 12>deals that Trumps announced or has reached with some of

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<v Speaker 12>these major trading partners that I think are obviously really

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<v Speaker 12>worth noting here. You know, the European Union, Japan, South Korea,

0:12:38.880 --> 0:12:42.760
<v Speaker 12>they accepted fifteen percent levies on their products, you know,

0:12:42.800 --> 0:12:44.720
<v Speaker 12>trying to stay away from some of the even higher

0:12:44.760 --> 0:12:48.160
<v Speaker 12>tariffs that Trump is negotiated. But I would also point out, Nathan,

0:12:48.200 --> 0:12:51.719
<v Speaker 12>that there are still some trade agreements that seem kind

0:12:51.760 --> 0:12:54.680
<v Speaker 12>of mired in ongoing negotiations. I mean, look at India,

0:12:54.679 --> 0:12:58.480
<v Speaker 12>for example, another important US trading partner. They were slapped

0:12:58.480 --> 0:13:00.720
<v Speaker 12>to the twenty five percent tariff last week. Now you've

0:13:00.720 --> 0:13:03.400
<v Speaker 12>got Trump threatening over the next couple of weeks to

0:13:03.920 --> 0:13:07.280
<v Speaker 12>increase that level into some fifty percent. You've still got

0:13:07.720 --> 0:13:09.640
<v Speaker 12>you know, sort of this back and forth with what

0:13:09.880 --> 0:13:12.600
<v Speaker 12>you know, potential China levees could look like. So that's

0:13:12.640 --> 0:13:16.079
<v Speaker 12>another sort of open question here. So The one thing

0:13:16.080 --> 0:13:17.560
<v Speaker 12>that I would just point out when it comes to

0:13:17.640 --> 0:13:21.000
<v Speaker 12>a lot of this trade policy is that you know,

0:13:21.120 --> 0:13:23.720
<v Speaker 12>we still I think, have to see what this ultimately

0:13:23.760 --> 0:13:25.920
<v Speaker 12>looks like long term. I mean, you know, in the

0:13:25.960 --> 0:13:28.920
<v Speaker 12>olden days, like literally just a year ago, you know,

0:13:29.000 --> 0:13:32.120
<v Speaker 12>you would imagine these trade agreements would take not just

0:13:32.240 --> 0:13:36.559
<v Speaker 12>you know, days or months, but ultimately years to effectively negotiate.

0:13:36.600 --> 0:13:38.720
<v Speaker 12>And so I do think that there is that possibility

0:13:38.760 --> 0:13:41.680
<v Speaker 12>that things could continue to evolve, if not even just

0:13:41.720 --> 0:13:43.400
<v Speaker 12>over the next few months, maybe over the course of

0:13:43.440 --> 0:13:44.440
<v Speaker 12>Trump's Terman office.

0:13:44.600 --> 0:13:47.960
<v Speaker 1>Now it raises the questions once again, specifically on some

0:13:48.080 --> 0:13:51.680
<v Speaker 1>of the countries you mentioned and others, including Switzerland. We

0:13:51.760 --> 0:13:55.400
<v Speaker 1>saw the president of Switzerland come to Washington at literally

0:13:55.440 --> 0:13:58.120
<v Speaker 1>the last minute trying to get out from under thirty

0:13:58.200 --> 0:14:01.559
<v Speaker 1>nine percent tariffs, walking away without a deal. Is there

0:14:01.600 --> 0:14:04.880
<v Speaker 1>still a possibility that even with these new teriff rates

0:14:04.880 --> 0:14:08.720
<v Speaker 1>officially in effect, we could see even more negotiations going on.

0:14:09.679 --> 0:14:12.280
<v Speaker 12>Yeah, I think, And you know, Trump World, you know,

0:14:12.320 --> 0:14:15.480
<v Speaker 12>everything's in negotiation, right. Yes, when you're looking at Switzerland,

0:14:15.559 --> 0:14:18.960
<v Speaker 12>obviously you do have that incredibly steep tarrat thirty nine percent,

0:14:19.400 --> 0:14:23.320
<v Speaker 12>you know, potentially upending you know, they're you know, there

0:14:23.520 --> 0:14:27.160
<v Speaker 12>massive gold trades, you know, watches, pharmaceuticals in particular, although

0:14:27.200 --> 0:14:29.760
<v Speaker 12>you know, I'd also point out Trump's got separate threats

0:14:29.800 --> 0:14:32.400
<v Speaker 12>on pharmaceutical goods that are just independent from you know,

0:14:32.400 --> 0:14:36.160
<v Speaker 12>these individual nation tariffs that he's announced. I do think that,

0:14:36.360 --> 0:14:39.000
<v Speaker 12>you know, there is that possibility that Trump could ultimately

0:14:39.080 --> 0:14:41.200
<v Speaker 12>change his mind and maybe something comes up where you

0:14:41.240 --> 0:14:43.760
<v Speaker 12>do get lower rates in the future. I mean, certainly,

0:14:43.800 --> 0:14:45.920
<v Speaker 12>I think you know, traders are looking at some of

0:14:45.920 --> 0:14:50.000
<v Speaker 12>those possibilities. We've already seen so much change over the

0:14:50.080 --> 0:14:53.320
<v Speaker 12>last several months since Trump initially you know, announced tariffs,

0:14:53.360 --> 0:14:55.720
<v Speaker 12>and I think you know, when you've also just got

0:14:56.280 --> 0:14:59.800
<v Speaker 12>you know, various sectors or you know, even sometimes nations

0:14:59.800 --> 0:15:02.400
<v Speaker 12>try to play kate Trump with investment deals, you know.

0:15:02.440 --> 0:15:05.200
<v Speaker 12>I mean, look at you know, the EU, Japan, you know,

0:15:05.280 --> 0:15:07.440
<v Speaker 12>announcing these big investment deals in the United States that

0:15:07.480 --> 0:15:09.480
<v Speaker 12>seems to have helped drive things a bit lower for

0:15:09.520 --> 0:15:11.440
<v Speaker 12>them in terms of that overall teriff rate. It does

0:15:11.480 --> 0:15:14.120
<v Speaker 12>seem like maybe there's you know, more on the table

0:15:14.160 --> 0:15:16.600
<v Speaker 12>here still, even if you've been slapped with a particularly

0:15:16.680 --> 0:15:17.080
<v Speaker 12>high rate.

0:15:17.160 --> 0:15:19.680
<v Speaker 1>Now in the last thirty seconds, Jill there's still the

0:15:19.720 --> 0:15:22.200
<v Speaker 1>overarching question of whether these tariffs are going to make

0:15:22.240 --> 0:15:25.040
<v Speaker 1>the ultimate goal of spurring more US manufacturing.

0:15:25.680 --> 0:15:28.240
<v Speaker 12>Yeah, I mean, you know, I obviously that's some you know,

0:15:28.280 --> 0:15:31.920
<v Speaker 12>Trump's got a massive gambit here on reshaping the entirety

0:15:32.000 --> 0:15:34.440
<v Speaker 12>of global trade. He's claiming, you know, these are going

0:15:34.480 --> 0:15:38.000
<v Speaker 12>to trash slash trade deficits, These will push companies to

0:15:38.040 --> 0:15:40.840
<v Speaker 12>move manufacturing back to the United States. I mean, certainly,

0:15:40.880 --> 0:15:43.760
<v Speaker 12>you've got major companies that are already announcing, you know,

0:15:43.800 --> 0:15:48.120
<v Speaker 12>major manufacturing programs and investments in the United States. But

0:15:48.920 --> 0:15:52.680
<v Speaker 12>you know that could potentially take years before you actually

0:15:52.720 --> 0:15:55.000
<v Speaker 12>see some of the fruits of those labors. In meantime,

0:15:55.080 --> 0:15:57.800
<v Speaker 12>I mean, you know, obviously, some of Trump's biggest critics

0:15:57.840 --> 0:16:00.600
<v Speaker 12>are going to say this could continue to cause inflationment,

0:16:00.760 --> 0:16:04.760
<v Speaker 12>inflation to spiral out of control, cause shortages on store shelves.

0:16:04.800 --> 0:16:07.360
<v Speaker 12>So I think, you know, we're obviously witnessing a very

0:16:07.440 --> 0:16:11.120
<v Speaker 12>dramatic realignment of global trade, and we'll have to see

0:16:11.160 --> 0:16:12.400
<v Speaker 12>how things can out.

0:16:13.560 --> 0:16:17.000
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