Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Welcome to Bloomberg Tech.
Speaker 3: In the last hour, the US Supreme Court has struck
Speaker 3: down President Donald trump sweeping global tariffs in a six
Speaker 3: to three decision. CNN is reporting that the President has
Speaker 3: a backup plan and has labeled the decision a disgrace.
Speaker 3: If we get official comment from the White House or
Speaker 3: the President, we'll bring it to you live. Let's get
Speaker 3: to markets and to summarize the reaction when the headlines
Speaker 3: hit equity search, particular tech, particularly technology stocks. You look
Speaker 3: at both the NASA one hundred in the Philadelphia Semiconductor Index,
Speaker 3: they've actually continue to push to session highs. Bonds fell,
Speaker 3: the dollar fell, particularly duration, looking at US ten year
Speaker 3: yield up a little more than two basis points at
Speaker 3: four point zero nine percent, but also in terms of
Speaker 3: duration thirty year as well.
Speaker 2: On the move.
Speaker 3: Let's get the key details and go to Bloomberg's a
Speaker 3: Marie Horden, who needs to also talk us through like
Speaker 3: the what happens. I'm looking at names like Amazon and
Speaker 3: Etsy pushing higher because this is about duties paid, right,
Speaker 3: and the next question will turn to refunds, but they'll
Speaker 3: start the beginning, tell us about the decision, tell us
Speaker 3: about the voting on the decision, and what we need
Speaker 3: to know.
Speaker 2: What we see with the decision is six'. Three that
Speaker 2: was what the court.
Speaker 4: Said that was the voting about striking down the use
Speaker 4: OF aipa to enact his tariff. Policies, NOW aipa tariffs
Speaker 4: have been used for about seventy five percent of where
Speaker 4: we are right now with The United states when it comes.
Speaker 2: To tariff policies and.
Speaker 4: Negotiations we have seen the entire year this administration take. On,
Speaker 4: Now Brett, cavanaugh in, dissenting was talking about the fact
Speaker 4: that this court does not outline how the rebates are
Speaker 4: going to, go and he actually said that probably is
Speaker 4: going to be a. Mess Supreme court is just deciding
Speaker 4: whether or NOT aipa was legal or not for reciprocal
Speaker 4: tariffs and for the use of the fentanyl. Terriffs they
Speaker 4: are not the ones that are going to be deciding
Speaker 4: how the rebates. GO a lot of you already seen
Speaker 4: a lot of retailers companies line up at trade courts
Speaker 4: signing up to sue the administration basically to get those.
Speaker 4: Rebates if The Supreme court came down with THIS iepa,
Speaker 4: ruling which they did today saying that the, presidents which
Speaker 4: is for, him this was a paramount. Policy this was incredibly.
Speaker 4: Important it was really a key pillar for this. Administration
Speaker 4: they're now saying this is. Illegal what comes, next ed
Speaker 4: is we've known this administration has had A PLAN, b
Speaker 4: whether or not It's Ambassador Jamison, Greer Treasury Secretary, Besston Peter,
Speaker 4: navarro they have all talked about the other avenues they can.
Speaker 4: Use So PLAN b includes also some of the sections
Speaker 4: we've already seen this administration use And trump has used
Speaker 4: also In trump One section two thirty two's things that
Speaker 4: have happened on commodities copper, aluminum Also section three toh,
Speaker 4: One section one twenty, two and thirty thirty. Eight get
Speaker 4: used to hearing these. Names the issue with a lot
Speaker 4: of these other avenues is and some of them environ acquire,
Speaker 4: investigations and some of them have certain limits to how
Speaker 4: high the teriff rate could. BE aiba really was this,
Speaker 4: blunt flexible tool that the administration could. Use so now
Speaker 4: this is just going to create some potential hurdles when
Speaker 4: they are trying to enact the next tariff.
Speaker 3: Policy so let's be clear This Supreme court decision voids
Speaker 3: The April Liberation day. Tariffs, right they range from ten
Speaker 3: to fifty percent fentanyl related. Duties they Impacted, Canada mexico And.
Speaker 3: China those tariffs did not affect those the, decision, sorry
Speaker 3: does not affect those under separate. Authorities and as you,
Speaker 3: note like that's why in the moment steel aluminum autos
Speaker 3: they're not covered by. This one other piece of breaking,
Speaker 3: news literally in the last ten minutes or, so is
Speaker 3: we have some details of The president's visit To. China
Speaker 3: SO i wanted to give that context to the audience because,
Speaker 3: actually Like china was a big part of this story either.
Speaker 4: Way, absolutely, so The president will be going To china
Speaker 4: Starting march thirty first Through april. Second that was going
Speaker 4: to be a visit he's been talking About he's going To.
Speaker 4: China but how awkward almost in a, way that The
Speaker 4: Supreme court strikes down HIS aepa terriffs when he has
Speaker 4: been using that authority when it comes To china and
Speaker 4: the tit for tat trade war we've seen Between washington And. Beijing,
Speaker 4: now not all the terrorfs placed On china will. Evaporate
Speaker 4: AS i, mentioned there are two thirty twos And section
Speaker 4: three zho ones that are still being used when it
Speaker 4: comes To, beijing but some of those sky high levels
Speaker 4: when it comes to fentanyl and the reciprocal, rate, well
Speaker 4: The Supreme court says that is. Illegal ALTHOUGH i have
Speaker 4: been talking to some of my sources abroad and some
Speaker 4: of these foreign officials who have been in the room
Speaker 4: with this trade team are talking about the fact that
Speaker 4: nothing really changes because for, them they understand the administration
Speaker 4: has been preparing for alternative scenarios under three oh. One
Speaker 4: so not quite sure they're saying what happens with specific,
Speaker 4: companies but when it comes to the bilateral, relationships what
Speaker 4: they've gone is the same information we've, received which, is
Speaker 4: if The Supreme court decides to strike down our, tariffs
Speaker 4: we are going to make sure we enact similar policy
Speaker 4: using other. Forms and one Individual i'm talking about is
Speaker 4: the fact that they are very well prepared for this
Speaker 4: administration to come back to them in the negotiating room
Speaker 4: and say we're going to do the same sort of tariff.
Speaker 4: Scenario we're just going to use a different, avenue and
Speaker 4: for them it's going to Be section three oh.
Speaker 3: One we have not yet heard directly from The. President
Speaker 3: will bring that reporting when it. Comes but of course
Speaker 3: we Have state of The Union tuesday night that was
Speaker 3: supposed to be focused on the, economy And i'm sure
Speaker 3: now we'll look forward to. THAT bloombagx and Re horden
Speaker 3: on the breaking news, Decision thank you very. Much we
Speaker 3: should talk more about markets prior to that headline hitting
Speaker 3: about The Supreme court decision ON iepah and. Tariffs, then
Speaker 3: as that one hundred was headed for its fourth straight weekly,
Speaker 3: decline its longest run of weekly declines Since march of last,
Speaker 3: year that has turned. Around equities continue pushing. Higher technology
Speaker 3: in the moment right now is outperforming at the index
Speaker 3: level as reaction to This Supreme court decision on, tariffs
Speaker 3: while bonds and the dollar. Fell let's bring In Scott
Speaker 3: ladner for more C Io horizon twelve billion dollars of
Speaker 3: assets under, management who had planned to come onto the
Speaker 3: program to talk about the technology. Sector what was going
Speaker 3: on in? Software we need to react to This Supreme court.
Speaker 3: Decision what does it mean for? You what does it
Speaker 3: mean for your? Strategies what does it mean for the technology?
Speaker 5: Sector, yeah look at, it and thanks for having me
Speaker 5: On this is always interesting when we get news like,
Speaker 5: this you, know right right before we go.
Speaker 2: On but it's it is you, know this is this.
Speaker 5: Interesting but there's just, look there is just like one
Speaker 5: part of the thing that we need to. Understand and you,
Speaker 5: know like now we have The Supreme. Court this was,
Speaker 5: expected you, know like let's be clear with. That you,
Speaker 5: know the market had priced in or sort of like
Speaker 5: understood that this was the most likely outcome from The Supreme.
Speaker 5: Court but now we have to, understand, like what is
Speaker 5: it going to Be trump's reaction because there obviously will
Speaker 5: be a reaction not only in the you, know sort
Speaker 5: of the tweetstor That i'm sure is, forthcombing but but
Speaker 5: also from some of the policy actions that that you
Speaker 5: And marie were just.
Speaker 2: Discussing you.
Speaker 5: Know on top of, that we need to understand like
Speaker 5: what are individual, companies you, know how are individual companies
Speaker 5: is going to? React so you, know this is really
Speaker 5: just sort of the first ending of how this is
Speaker 5: going to end up playing. Out BUT i do want
Speaker 5: to make one point at and that, is you, know
Speaker 5: if the market was convinced that this was sort of
Speaker 5: the end, game you'd see you wouldn't see technology leading
Speaker 5: today you'd see something like small caps and more of
Speaker 5: the cyclical stuff really sort of, leading and you see
Speaker 5: more of a reaction out of the long end of
Speaker 5: the yield. Curve you, see you would you see ten
Speaker 5: years and thirty, year you, know probably up, ten fifteen
Speaker 5: to twenty basis points because of the you, know both
Speaker 5: taking a tax, away you know that sort of the
Speaker 5: positive growth impulse that would, imply and also the sort
Speaker 5: of the damage that this does to the to the
Speaker 5: to the budget. Deficit so you know, that you, know
Speaker 5: those things together would lead to a larger reaction in
Speaker 5: the bond market and the small caps that we're frankly
Speaker 5: seeing right. Now so that's the that's the market saying
Speaker 5: we don't exactly know how this is going to end
Speaker 5: up just.
Speaker 3: Yet some research and academic institutions have actually crunching numbers on.
Speaker 3: That So i'm going to pose your question That i'm
Speaker 3: going to jump into My bloomberg term and look up
Speaker 3: that data for it for it later on in this,
Speaker 3: conversation we're Showing amazon And etsy right both pushing. Higher
Speaker 3: think about what those companies do the duties that have been.
Speaker 2: PAID a lot of this is.
Speaker 3: Logical As amory outlined very, clearly a question for a
Speaker 3: lot of, companies including across the technology, sector is refunds
Speaker 3: that will go to the lower. Courts but you, know
Speaker 3: does this fundamentally alter the fortunes and projections for growth
Speaker 3: of some of those names E commerce being, One amazon And.
Speaker 5: Etsy, LOOK i think it makes their operations a little
Speaker 5: bit more simple because you, know one policy tool that
Speaker 5: was really just at the whim of one individual, person
Speaker 5: that policy tool has been taken, away or at least
Speaker 5: at least at least it's not taken away then then blunted.
Speaker 5: Somewhat so it does increase the visibility and sort of
Speaker 5: the understandability of their operating. Environment so that is, helpful
Speaker 5: and that is you, know part of the reason why
Speaker 5: you're seeing the reaction in some of those stocks. Today
Speaker 5: but we do need to see How trump is going
Speaker 5: to react to this and how the administration is going
Speaker 5: to react to. This you, know what is the counter
Speaker 5: to what The Supreme court just. Did so you, know
Speaker 5: these games makes, sense but in order for them to be,
Speaker 5: maintained you, know that's sort of future you know that you,
Speaker 5: know sort of the look through in the future about
Speaker 5: how we're going to operate these. Companies needs to be
Speaker 5: a little bit more in cment Ess, man needs to
Speaker 5: be a little bit more dry than it is right.
Speaker 3: Now so the data is just referencing in the blog
Speaker 3: comes from The Yale budget lab and without ER pa,
Speaker 3: tariffs consumers will face an overall average effective tariff of
Speaker 3: nine point one. Percent had those tariffs been left in,
Speaker 3: place it would be nearer to seventeen. Percent but your
Speaker 3: point on the, budget you, know in the long, run
Speaker 3: THE us economy will be persistently smaller a bit of
Speaker 3: zero point one percent based on this. Decision and they're
Speaker 3: talking about the kind of shortfall and impact on, growth economic,
Speaker 3: growth trying to balance like what The treasury would have
Speaker 3: brought in from these tariffs versus, basically like In layman's,
Speaker 3: terms people being put off buying right because of higher
Speaker 3: higher cost. Pressures just try and cast us forward what
Speaker 3: you think happens next and any real impact on this
Speaker 3: market and this economy longer.
Speaker 5: Term so, LOOK i, MEAN i think that you know
Speaker 5: there's one thing that is that is relatively, clear and
Speaker 5: that is this is a tax. Cut so you know
Speaker 5: that you know the tariffs are, taxes and and you,
Speaker 5: know at the end of the, day tariffs are going
Speaker 5: to be lower than they otherwise would have been had
Speaker 5: this decision not been ruled this. Way and so you,
Speaker 5: know at the, margin this is a tax Cit now
Speaker 5: what what we have to figure out is what does
Speaker 5: exactly what does that does exactly look? Like you, know
Speaker 5: what sectors are most impacted, directly and how big is
Speaker 5: this is this ultimate tax cut going to end up?
Speaker 5: Being you, know so those are things that they're going
Speaker 5: to have topletely be played out in you, know not
Speaker 5: only the, market but in the courts, obviously but but but,
Speaker 5: ultimately this is a positive thing FOR us. Growth this
Speaker 5: is a positive thing for NOMINAL gdp. Growth it is
Speaker 5: a negative thing for the budget. Deficits the, magnitude you,
Speaker 5: know so directionally we know these things that the magnitude
Speaker 5: is the thing that we're going to all have to
Speaker 5: sort of figure out over the coming, weeks and that
Speaker 5: magnitude will obviously impact you, know the ultimately impact on.
Speaker 2: Markets all, Right Scott ladner s At.
Speaker 3: Horizon thank, You and actually some news crossing The Bloomberg.
Speaker 3: Tunnel The European Parliament's Trade committee is going to meet On,
Speaker 3: monday to discuss A us trade. Deal the committee also
Speaker 3: will assess this trade ruling and its implications that's coming
Speaker 3: from THE, eu of, course a key trade partner in
Speaker 3: The United. States coming, up the battle for The Bugs
Speaker 3: bunny brand. Continues we're going to discuss the latest efforts
Speaker 3: to make a deal For Warner.
Speaker 2: Brothers this Is Bloomberg.
Speaker 3: Tech netflix CO Ceo Ted sarandos says the company's bid
Speaker 3: to Acquire Warner Brothers discovery will close even After warner
Speaker 3: reopen talks with Paramount. S, guidarce speaking With, Bloomberg serrando's
Speaker 3: accused its Rival bidder of spreading misinformation about the.
Speaker 2: Offers what we.
Speaker 6: Believe is in what The Warner Brothers discovery board agrees
Speaker 6: with us on as, well is that our deal is
Speaker 6: the superior.
Speaker 7: Deal you believe it's good for, Them, no it's good for,
Speaker 7: us and we are EXCITED i did about getting it.
Speaker 8: Done when you talk about kind of clarity and, certainty you,
Speaker 8: know one of the aspects of The paramount deal that
Speaker 8: they have stressed is, better AND i think some of
Speaker 8: The Warner brothers shareholders seem to agree or at least
Speaker 8: entertain it. Is you, know they're offering to buy the whole,
Speaker 8: company they will just take it out thirty dollars a.
Speaker 8: Share Warner brothers doesn't have to proceed with a spin.
Speaker 8: Beforehand what is your argument for why your more complex
Speaker 8: deal is better for all those shareholders than just getting
Speaker 8: the cash.
Speaker 7: Tomorrow this deal is not complicated at.
Speaker 6: All is twenty seven to seventy five at plus the
Speaker 6: value Of Discovery.
Speaker 7: Global by the, way it's the deal that they.
Speaker 6: Want it is the deal that they ask for those
Speaker 6: these are the assets network for.
Speaker 7: Sale so the more complex thing is buying the whole.
Speaker 6: Company you do, that then you're buying These european sports.
Speaker 9: Networks as you, know sports rights In europe are incredibly highly,
Speaker 9: regulated as is the television, landscape which may be stepping themselves.
Speaker 7: Into SO i would argue that our deal is quite.
Speaker 7: Simple twenty seven to seventy five for, sure plus the.
Speaker 6: Value Of Discovery, global and WHICH i think is an incredible,
Speaker 6: asset and they.
Speaker 7: Do they do. Too that's why that they said that
Speaker 7: the offer up this. Way that's why when we were,
Speaker 7: bidding we bid for the assets that were for.
Speaker 8: Sale If Discovery global is a great, Asset i'm just
Speaker 8: wondering have you guys talked about just buying the whole company.
Speaker 7: And doing the spin.
Speaker 6: Yourself as you, know we're the linear broadcast business is
Speaker 6: not something that we're interested, in but others.
Speaker 7: Are AND i think WHEN i look at the, business
Speaker 7: particularly Those european.
Speaker 9: Networks are are not in decline the way that some
Speaker 9: of the way they are in THE. Us so it
Speaker 9: is not of our, interest but it's Sure i'm sure
Speaker 9: of interest In.
Speaker 7: Many buyers.
Speaker 3: Said you are competing in a in a politically sensitive media.
Speaker 3: Deal there is reporting and and we are in a
Speaker 3: time where The ellisons are in their relationship to The
Speaker 3: trump administration has been. Discussed it's also, reported of course
Speaker 3: that that you met with The PRESIDENT i think On
Speaker 3: november twenty. Fourth how are you weighing that and assessing
Speaker 3: that in this, scenario that relationship Between paramount's leadership and.
Speaker 10: This.
Speaker 6: Administration, LOOK i have spoke to The president about the
Speaker 6: state of the entertainment.
Speaker 7: Industry we've had multiple conversations.
Speaker 6: About how do we Protect american, jobs how do we
Speaker 6: keep the entertainment industry?
Speaker 11: Healthis what are those head what are those things that
Speaker 11: we're working on to try to keep production?
Speaker 7: Up in The United. States we are built besting of.
Speaker 11: Billion dollars into a new state of the art production
Speaker 11: facility at the old For Momba military base In New. Jersey,
Speaker 11: obviously The president is very keenly interested in entertainment and
Speaker 11: he's very interested In american industry And american.
Speaker 7: Jobs but those are the conversations that we've. HAD i
Speaker 7: don't know.
Speaker 9: Why The ellisons intimate that they have some direct line
Speaker 9: to The department Of justice for a faster path of,
Speaker 9: clearance BUT i doubt that they.
Speaker 7: Do this is a says it is being run by
Speaker 7: The department Of. Justice The president has been.
Speaker 1: Very clear on.
Speaker 7: That we've been very clear on.
Speaker 6: That The department Of justice published in twenty twenty three
Speaker 6: the guidelines for mergers that they are following right.
Speaker 7: Now so that's what's happening. Here this is a business
Speaker 7: deal that not a political.
Speaker 3: Deal that Was netflix CO Ceo Ted surrandos that stick
Speaker 3: with the media drama and Bringing Rich. Greenfield he's a
Speaker 3: partner at media technology analyst At Lightshed. Partners there was
Speaker 3: a lot in, that you, KNOW i think to, START
Speaker 3: i welcome your thoughts on, it but to be, frank you,
Speaker 3: know we open that conversation by, saying given the current
Speaker 3: scenario where there's a waiver Until monday For Warner Brothers
Speaker 3: discovery to speech, paramount Has netflix got the means and
Speaker 3: the will to improve its bid if it needs?
Speaker 2: To and that wasn't really.
Speaker 1: Answered, WELL i think you got to step, back you.
Speaker 12: KNOW i think one of the things that were one
Speaker 12: of the points THAT i Think lucas sort of ignored
Speaker 12: in Asking, ted you know he was talking, about isn't
Speaker 12: the big for the whole company? Simpler and the answer, is,
Speaker 12: obviously bidding for one whole company is obviously. Simpler but
Speaker 12: what he's missing is The warner. Board and what really
Speaker 12: started this entire process was a desire to split the, company,
Speaker 12: right to separate the the studio streaming assets from the
Speaker 12: LINEAR tv business that was considered mission. Critical AND i,
Speaker 12: think you, know the challenge now Is, netflix by buying
Speaker 12: only the streaming and, studio is not Preventing Warner brothers
Speaker 12: from affecting the. Split this summer paramount is they want
Speaker 12: to stop the. Split they need the cash flow from
Speaker 12: those you know they're dying but you know those high
Speaker 12: free cash flow cable network assets to finance, this and
Speaker 12: so they're trying to stop the, split but the board
Speaker 12: wants to split Because god. Forbid trump changes his, mind
Speaker 12: like we've Seen Tegna Next.
Speaker 1: Star like, You i've certainly Seen trump change his.
Speaker 12: Mind if for any, Reason trump or even a foreign
Speaker 12: regulator blocks The Paramount Warner brothers, deal you would not
Speaker 12: have split the, company and you'd be in twenty twenty.
Speaker 12: Seven AND i think that is there's a lot more
Speaker 12: value sort of an intangible but a real value to
Speaker 12: that split THAT i think there's been a tremendous amount
Speaker 12: of just ignoring and What i've read in sort of
Speaker 12: the press about, this and SO i think that piece
Speaker 12: is really. Important but to answer your very specific, QUESTION
Speaker 12: i do think If netflix had a raise by five
Speaker 12: to ten percent their, BID i think they Would and
Speaker 12: SO i think the only Way paramount wins is with
Speaker 12: a knockout, bid something in the thirty five to forty,
Speaker 12: range probably thirty six thirty.
Speaker 1: SEVEN i Doubt netflix chases that.
Speaker 3: High on the network's liking A tv. PIECE i think
Speaker 3: we asked him later on why you, know in Miss
Speaker 3: surrenders's Answers, forseonmble we're not in that, business but he'd
Speaker 3: already said those are the assets for. Sale what we
Speaker 3: did talk about was the movie, business. Theatres right And
Speaker 3: bloomberg had reported that the DOJ's talking to that industry
Speaker 3: to assess what they think will. Happen and you, know
Speaker 3: the simple argument miss The surrenders makes is That Warner
Speaker 3: brothers has not just been making THE ip for one hundred.
Speaker 3: Years their distribution at theaters is. Excellent that would be
Speaker 3: an advantage To. Netflix do you do you see?
Speaker 12: That, Look netflix is not in the theatrical distribution. BUSINESS
Speaker 12: i think they certainly have recognized that theatrical can add
Speaker 12: a marketing power to some of their. Content you look
Speaker 12: at how they Put Stranger things in movie. Theaters you,
Speaker 12: know they PUT K Pop Demon hunters a couple of
Speaker 12: times in movie. Theaters so you, know they actually released
Speaker 12: a lot of movies with you, know shorter. Windows but
Speaker 12: there was a lot of, MOVIES i think probably twenty
Speaker 12: movies released in theaters last year By, netflix and so you,
Speaker 12: KNOW i don't think there's a wholesale. Aversion do they
Speaker 12: believe that the movie business needs to? CHANGE i think they.
Speaker 12: DO i, mean, look movie theater. Attendants forget about this
Speaker 12: Whole netflix discussion for a second. Movie theater box office
Speaker 12: in the last twelve months is twenty five percent below
Speaker 12: where it was pre, pandemic and that's just box office
Speaker 12: actual butts in seats attendance is down fifty percent from pre.
Speaker 12: Pandemic so the bottom line is the theater business is
Speaker 12: in a very very, dark troubled. Place the reality is
Speaker 12: you need people that are investing in the entertainment. Business
Speaker 12: and you, know the reality Is netflix has certainly shown
Speaker 12: a history of investing very aggressively.
Speaker 1: In content all around the.
Speaker 12: World you, know, look we'll See paramount says they're gonna
Speaker 12: make thirty, movies But disney also said they were going
Speaker 12: to Keep fox as a fully independent, studio and cost
Speaker 12: cutting eventually drove that production right back.
Speaker 1: Down and so there's very few incremental movies From disney.
Speaker 12: Today and SO i don't, Know i'm sort of skeptical
Speaker 12: that anyone would ever try to actually make thirty, movies
Speaker 12: because you can't make ten or fifteen movies, profitably let alone.
Speaker 3: Thirty paramount has Until monday to do something right because
Speaker 3: right now really just and that's sort of a red
Speaker 3: hurricane to go with, That so go with, that not,
Speaker 3: Really so what happens.
Speaker 1: Next, well we don't really.
Speaker 12: KNOW i, mean, look the board has a Fiduci if
Speaker 12: you're the board Of Warner, brothers you have a fiducia
Speaker 12: responsibility up until the, vote, Right like, so If paramount
Speaker 12: came in the night before with a knockout bid thirty
Speaker 12: five dollars or thirty eight dollars all cash debt guaranteed
Speaker 12: by The, ellsons you don't have to worry about solvency
Speaker 12: and closing and all of.
Speaker 1: That you, know the board, WOULD i think would have to.
Speaker 12: Listen, so, like, sure they are definitely trying to force
Speaker 12: a best and final out Of, paramount who's been asking
Speaker 12: to talk to the board for quite you, know probably
Speaker 12: for a couple of months. Now but my point just
Speaker 12: being that even if it doesn't happen On, monday it
Speaker 12: theoretically could happen.
Speaker 1: Later time is obviously running.
Speaker 12: Out you, know you're down to you, know effectively four
Speaker 12: weeks from, today there's going to be a shareholder, vote
Speaker 12: AND i think without a meaningful increase from, Parers netflix
Speaker 12: is going to win that.
Speaker 3: Vote to your, Mind, rich we just have thirty, Seconds
Speaker 3: but which is most? Logical remind us where you.
Speaker 12: Stand unless IF i Was, PARAMOUNT i would not dramatically
Speaker 12: raise my. Bid they really believe that regulatory wise will,
Speaker 12: FAIL i would play that. OUT i think overpaying if
Speaker 12: you're paramount and overlevering does not make. Sense i'd rather
Speaker 12: lose and invest on my own sort of the Way
Speaker 12: netflix did for a decade than. Overpay and SO i
Speaker 12: Hope paramount doesn't do something quote unquote price.
Speaker 1: Stupid but we'll see over the next few.
Speaker 3: Weeks Rich, greenfield Like Shed. Partners great to have you
Speaker 3: back on the. Show thank you very. Much let's go to.
Speaker 3: SPACE nasa has Set march sick as the target date
Speaker 3: for Its artemist to lunar. Mission The Space agency is
Speaker 3: holding a press conference right, now which we're. Monitoring but
Speaker 3: let's get the latest details Of. Bloomberg space Reporter Sana. Pashanka,
Speaker 3: okay we have a, date you AND i will be
Speaker 3: it seems heading To. Florida remind us how we got
Speaker 3: to this.
Speaker 10: Point, Yeah, so they just you, know conducted the wet
Speaker 10: dress rehearsal over the past few, days and during that,
Speaker 10: test they practiced loading fuel into the, rocket conducting the
Speaker 10: lunch launch, countdown and removing the propellant At Kennedy Space
Speaker 10: center to make sure the rocket is ready to take
Speaker 10: these astronauts to the vicinity of The, moon which will
Speaker 10: be the first time in over half a. Century so,
Speaker 10: yeah now they are, launched they're successfully targeting The march
Speaker 10: sixth launch. Day the four astronauts will enter a quarantine
Speaker 10: period soon so that they can be prepared for the.
Speaker 1: Mission.
Speaker 3: YEAH i think that fourteen day quarantine period kicks off this,
Speaker 3: afternoon and there are no, guarantees, Right remember there are.
Speaker 3: Windows there are dates Through march and then another window In.
Speaker 3: April big news YESTERDAY snasa had Put starliner and what
Speaker 3: happened With starliner in the same class of mishap as
Speaker 3: The shuttle. Tragedies that was a big red headline on the.
Speaker 3: Terminal what do we need to?
Speaker 10: Know, Yeah so, basically if you might, remember The Boeing
Speaker 10: starliner mishap left TWO nas astronauts kind of stuck on
Speaker 10: The International Space station for months longer than expected after
Speaker 10: the vehicle suffered technical difficulties on the way there that
Speaker 10: made it too dangerous to bring these astronauts back. Home
Speaker 10: so they initially had a week long mission planned and
Speaker 10: ended up turning in two. Months since they could not
Speaker 10: come home on The Boeing starliner. Vehicle and so this
Speaker 10: report which came out, yesterday essentially classified the whole debacle
Speaker 10: as a type a. Mishap as you, mentioned it's the
Speaker 10: same level as the challenger in The columbia. Incidents And Isaac,
Speaker 10: man THE nasa, administrator essentially attributed the debacle and kind
Speaker 10: of the lack, of you, know clear organization around it
Speaker 10: as the fault OF nasa, bureaucracy faulty, engineering and more,
Speaker 10: so it was really just a substantial kind of reflection
Speaker 10: on what happened and how bad it really was in
Speaker 10: the scheme of NASA's.
Speaker 3: History, Bloomberg Santa, pashanka it's great to have you on the.
Speaker 3: Show thank you very. Much let's get back to, markets
Speaker 3: and this is what the picture is right. Now The
Speaker 3: Supreme court has struck down a large part Of President
Speaker 3: trump's tariff. Policy then as that one hundred is now
Speaker 3: up half of, percent pairing what was a big gain
Speaker 3: in the immediate aftermath of, that.
Speaker 2: We also saw the dollar fall. Bonds for you look.
Speaker 3: At THE us tenure yield now kind of up less
Speaker 3: than two basis points four points or eight two.
Speaker 2: Percent but that's where the reaction.
Speaker 3: Was we are waiting for direct an official response from
Speaker 3: The president and The White house and continue to monitor
Speaker 3: market and its impact on. Tech will be right. Back
Speaker 3: it is halftime and this Is Bloomberg. Tech welcome back
Speaker 3: To Bloomberg. Tech the big breaking story of the day
Speaker 3: is that The Supreme court has struck Down President trump's
Speaker 3: global tariff's, policy a six to three decision arguing that
Speaker 3: he exceeded his authority under The International Emergency Economic Powers.
Speaker 3: Act markets reacted as follows big surgeon equities outperformance in,
Speaker 3: technology particularly in chip and infrastructure. Stocks others will get
Speaker 3: To in just a, moment bonds fell and the dollar
Speaker 3: fell as. Well within that bucket of technology. Stocks there
Speaker 3: are some specific things to take into account right which
Speaker 3: is on the. Cryptoside we see some Movement bitcoin going.
Speaker 3: Up e commerce is a big story as. Well there's
Speaker 3: a lot of emphasis on the what happens.
Speaker 2: Next clearly we will get to that very.
Speaker 3: Soon but a number of companies across THE us economy
Speaker 3: had sued to recoup any of the duties that they.
Speaker 3: Paid let's try and summarize that With bloomberg's equity Reporter Carmen,
Speaker 3: RYINIKEY i, Mean. Carmen the advantage of having the terminal
Speaker 3: is to see everything play out in real. Time seeing
Speaker 3: in the tech, sector is there anything specific in terms
Speaker 3: of outperformance or under performance in single names directly in
Speaker 3: response to The Supreme court.
Speaker 2: Decision, Yeah so we really.
Speaker 13: See enthusiasm flow back into some of those you, know
Speaker 13: big hyperscalers we're you're seeing you, Know, Amazon alphabet Even
Speaker 13: nvidia sort of back at the top of THE nasdak performers.
Speaker 13: Today you, know these are the biggest stocks in that.
Speaker 13: Index they're helping to lift the entire. Thing so some
Speaker 13: of that is you, know enthusiasm around the potential for you,
Speaker 13: know revenue to flow back to these. Companies AND i
Speaker 13: think there also might be a sense that this decision
Speaker 13: might sort of lift or smooth out some supply chains From.
Speaker 13: Asia so that's particularly important for those chip, makers as you,
Speaker 13: said you, know the companies that are building manufacturing chips and.
Speaker 13: SEMICONDUCTORS i think the other thing that we're seeing here
Speaker 13: is that you, know we Saw apple also hire definitely
Speaker 13: one that has a very global presence and could benefit.
Speaker 13: Here and all of this is really contributing to THAT
Speaker 13: nas deck going higher on the, week and it could
Speaker 13: app a three week, right, yeah string of.
Speaker 2: Losses So i'm sorry to interrupt.
Speaker 3: You i'll jump in because WHEN i got to my
Speaker 3: desk this, morning that's the STORY i was waiting. For
Speaker 3: it looked like The nasdaq one hundred would drop on the,
Speaker 3: week fourth straight weekly. Decline, actually The Supreme court decisions
Speaker 3: really turned it. Around but let's, say you, know we
Speaker 3: were headed for a four straight week of. Losses what's
Speaker 3: been the driver at the index level in the tech
Speaker 3: sector more.
Speaker 13: Recently, yeah so we've obviously had this sort OF ai
Speaker 13: disruption narrative play. Out there's been a lot of jitters
Speaker 13: about you, know HEAVY capec, spending not bringing ENOUGH roi for,
Speaker 13: investors and then you know the sofs that we saw
Speaker 13: in some very specific names over the last week and
Speaker 13: a half in places where you, know there were worries
Speaker 13: that software would just disrupt.
Speaker 7: Entire you, know, sectors entire.
Speaker 13: Companies so that was really. INTERESTING i was also looking
Speaker 13: for The, nasdaq you, know to potentially hit a fourth you,
Speaker 13: know week of declines heading into next week where we
Speaker 13: have in videos. Earnings so the setup there is. INTERESTING
Speaker 13: i think seeing someone husiasm today maybe changes the narrow
Speaker 13: littive a little. Bit we'll see if this sticks and
Speaker 13: if it really marks the.
Speaker 7: Sentiment shift IN.
Speaker 13: Ai but in videos, report that's really the next big.
Speaker 13: Catalyst you, know What jensen will say about what they're
Speaker 13: seeing next is going to be really important to investors
Speaker 13: looking for some you, know confirmation or some excitement about
Speaker 13: THE ai trade going.
Speaker 3: Forward video earnings off to market Next. Wednesday but GENERALLY
Speaker 3: i think the market betting on lower tariff, risk reduced policy.
Speaker 3: Uncertainty Bloomer's Carmen, rhyanikey thank you very. Much let's get
Speaker 3: more on The Supreme court Decision tariffs and tech With
Speaker 3: michelle Ga, at THE ceo of The Crack institute For
Speaker 3: Tech diplomacy At. Perdue so that's the kind of next
Speaker 3: step the. Unknown The court did not take actional weigh
Speaker 3: in on the issue of refund.
Speaker 2: That will go to the lower. Courts but across.
Speaker 3: The sector there are companies that had taken legal action
Speaker 3: to recoup duties that they were having to pay because
Speaker 3: of the. Tires The president put in place a hard
Speaker 3: question to start, With but what does happen?
Speaker 14: Next, WELL i think we're going to see that play
Speaker 14: out in the next twenty four hours and frankly the
Speaker 14: next few. Months BUT i think there's two very important
Speaker 14: things to recognize about the ruling. Today the first is
Speaker 14: that the ruling is a screenshot in a very long
Speaker 14: movie About american economic. Transformation and the truth is that
Speaker 14: we can't unsee the fact that the trade policies that
Speaker 14: we've set up over the past twenty, years thirty, years
Speaker 14: fifty years in some, cases have disincentivized the very things
Speaker 14: that we need to do in order to lead and be, safe,
Speaker 14: prosperous and secure as a. Country that includes being able
Speaker 14: to manufacture at, home to regain control of our supply,
Speaker 14: chains to have any sort of production capacity here at.
Speaker 14: Home so the when and how of revamping our trade
Speaker 14: relationships is all taking, place and this is the latest.
Speaker 14: Scene but the reality is in the big picture is
Speaker 14: that reindustrialization is our. Future our trade relationships are at
Speaker 14: the heart of, that and there's no bringing the train
Speaker 14: back into the, Station.
Speaker 3: Michelle at the time the news, broke The president was
Speaker 3: in a closed doors meeting with, governors BUT cnm reporting
Speaker 3: that he stated that he has a plan B earlier
Speaker 3: in the, program we went through that there are other. Powers,
Speaker 3: right relating to other buckets for tariffs that his cabinet have,
Speaker 3: outlined how much do you expect a sort of severe
Speaker 3: reaction or a continuation of the status quo from the
Speaker 3: president in that, Sense, YEAH i.
Speaker 7: Think they're going to take a.
Speaker 2: Look it sounds like they're going to take.
Speaker 14: A look at all of the different tools that the
Speaker 14: executive branch can use in order to rebalance our trade.
Speaker 14: Relationships congress is already coming out with statements by some
Speaker 14: members on doing the, same and so there's a number
Speaker 14: of things. Here but remember that tariffs aren't our only.
Speaker 14: Tool and look no further than THE ai summit that
Speaker 14: just took place In New delhi In india over the
Speaker 14: past few days to recognize that trusted technology and the
Speaker 14: innovation coming out of The United states is also a
Speaker 14: very important and maybe the most important tool that we
Speaker 14: have to revamp our economic relationships with our. Allies you
Speaker 14: had every Leading american tech company show up In New
Speaker 14: delhi to announce deal after deal with our partners In.
Speaker 14: India you had The White house show up to say
Speaker 14: we're here to give you the best gold STANDARD ai
Speaker 14: to give you. Financing on top of, it we're going
Speaker 14: to send in THE us tech. Core in other, words
Speaker 14: we're going to teach you to, fish and we're going
Speaker 14: to make you a, sovereign prosperous ai capital in the.
Speaker 14: World and that is a very strategic tool for getting
Speaker 14: our partners around the world to want to do business with.
Speaker 2: Us, michelle very grateful that you took us.
Speaker 3: There you, know they're almost competing policies or competing, ideals.
Speaker 3: RIGHT a big section of The White house wants to
Speaker 3: have The american technology stack dominant in markets. Overseas one
Speaker 3: of the things that Common, ryanikey our equities, reporter was
Speaker 3: seeing in the markets is the reaction reflects hope that
Speaker 3: maybe supply chains get eased up a little bit because
Speaker 3: tariff's taken out of the, equation give you access To.
Speaker 2: China try and balance that for.
Speaker 14: Us, YEAH i think look, again The parris and the
Speaker 14: specific percentages that we're agreeing on with our partners around
Speaker 14: the world are one single. Tool another tool is all
Speaker 14: of the other pieces of The american value proposition in
Speaker 14: trading with our. Partners and, Again india is a really great.
Speaker 14: Example japan's also a really good. Example we've got a
Speaker 14: new trade relationship with. Them they're investing five hundred billion
Speaker 14: dollars into The United states or first thirty billion they
Speaker 14: announced last week in power. Infrastructure. Here Soft, bank A japanese,
Speaker 14: company wants THE us to be a leader in artificial.
Speaker 14: Intelligence so the money is pouring in from our. Allies
Speaker 14: the trade relationships are strong, there and again it's because
Speaker 14: of the trusted. Technology we have the best technology in the.
Speaker 14: World we also have trusted tech. Companies you didn't see
Speaker 14: Any chinese deals announced In, india and Remember india was
Speaker 14: the first to be to Ban TikTok and Other chinese
Speaker 14: tech companies because they don't trust. Them and so we
Speaker 14: have terriffs as a, tool and we have trusted innovation
Speaker 14: as a, tool AND i think that's going to be
Speaker 14: the future Of american.
Speaker 3: Diplomacy Michelle, Guide PURDUE Crag institute For Tech.
Speaker 2: Diaplomacy great to have you back on the. Show thank
Speaker 2: you very much.
Speaker 3: Again going back to financial, markets particular focus on the technology. Sector,
Speaker 3: then as that one hundred is come off its session
Speaker 3: high gain of about one point one, percent but still
Speaker 3: up eight tensve, percent and as we've been saying for
Speaker 3: the last forty, minutes it is no longer on track
Speaker 3: for its fourth straight weeks of. Declines it's snapped three
Speaker 3: straight weeks of declines outperformance in the first chip Sector
Speaker 3: Philadelphia Semiconductor. Index but the story basically equities pushed, higher
Speaker 3: the dollar and bonds fell as The Supreme court struck
Speaker 3: Down President trump's global. Tariffs we have more throughout the.
Speaker 3: Hour this Is Bloomberg. Tech THE Us Supreme court has
Speaker 3: struck Down President trump's, tariffs a major decision with implications
Speaker 3: for global. Trade among the company's most, Impacted, apple according
Speaker 3: To Bloomberg, intelligence the tech has paid roughly three billion
Speaker 3: dollars in tariffs over the past. Year for more on
Speaker 3: the ruling On apple and the administration's trade, Agenda Bloomberg
Speaker 3: surveillance co Host Hemry horde and is. BACK i, Mean
Speaker 3: apple is now pushing to its own session. High it's
Speaker 3: one of the names that's continued to have momentum since
Speaker 3: the ruling. Hit there's some logic to.
Speaker 4: That, Yeah and they recently spoke about this on the
Speaker 4: recent Earning zoo, call and they said that actually the
Speaker 4: tariff impact was somewhere in the one point four billion
Speaker 4: dollar range when it comes to how much they have
Speaker 4: had to deal with paying some of these, costs and
Speaker 4: obviously there's a lot of consternation about what does those
Speaker 4: costs from the tariffs mean for everyday consumers that want
Speaker 4: to go out and get new. iPhones when it comes
Speaker 4: To Tim, cook remember there are some few keen moments
Speaker 4: that the course of the last year as he tries
Speaker 4: to be the diplomat between The White house as well As.
Speaker 4: Beijing so in the summer he went to The White
Speaker 4: house and talked about how he was going to Invest
Speaker 4: apple's going to invest in another one hundred billion dollars
Speaker 4: into The United. States that was In, august and then
Speaker 4: more recently in in the, fall he went To, china
Speaker 4: and In china he talked about committing to expanding manufacturing
Speaker 4: representation as well In, china And, china of course is
Speaker 4: its key market outside of The United. States they still
Speaker 4: make a bulk of their. Manufacturing but For Tim, cook
Speaker 4: he has to almost do both at the same, time
Speaker 4: make sure that he's Showing china that he's committed to that.
Speaker 4: Market but at the same, time especially when you have
Speaker 4: this tariff, announcement and you likely see this administration having
Speaker 4: to go back to the drawing, board especially With, china
Speaker 4: which took the hardest to land when it comes to
Speaker 4: the tit for tat, trade what we saw In china
Speaker 4: coming out and using rare earth as a negotiating tool
Speaker 4: at those. Talks Tim cook is probably going to likely
Speaker 4: continue to diversify the manufacturing supply chain as we have
Speaker 4: Seen apple move into places Like vietnam of, course and
Speaker 4: places Like.
Speaker 3: India and amh is probably worth reminding our audience that
Speaker 3: actually the other piece of news that came out this
Speaker 3: morning is we know that The president will go To.
Speaker 3: China what are the dates and frame it in that
Speaker 3: trade negotiation.
Speaker 2: Context, yeah it was.
Speaker 4: Pretty stunning the fact that we got The Iiepa Supreme
Speaker 4: court decision at the same time that we have confirmation
Speaker 4: about the president's trip To. Beijing he's been talking about
Speaker 4: this trip and he'd go In april to have a
Speaker 4: meeting With, shijingping and it's going to Be march thirty
Speaker 4: first Through april. Second and at the same time the
Speaker 4: administration thought they had a tariff rate With. Beijing they
Speaker 4: clearly are going back to the drawing. Board now there
Speaker 4: Are section two thirty two and three or one tariffs On.
Speaker 4: China those will stay. Well The Supreme court rule today
Speaker 4: was REGARDING, aipa and they just ruled that The president
Speaker 4: cannot USE aipa the way he. Did the flexibility how
Speaker 4: BLUNT iepa is for this emergency tariff. Authority so now
Speaker 4: they're going to go back to the drawing board and PLAN.
Speaker 4: B we can expect more. Tariffs And i'm speaking to
Speaker 4: foreign officials all morning that they expect things to stay
Speaker 4: the same because they know the administration is going to
Speaker 4: come out using legal. Authority but this means that that
Speaker 4: trift we are. Tripped we are not past peak terriff.
Speaker 4: Uncertainty there's going to be a lot of trade headlines
Speaker 4: before and during their trip when The president sits now
Speaker 4: With shujinping And.
Speaker 3: Beijing and we haven't heard directly or officially this morning
Speaker 3: from The. President The European commissions come out to your
Speaker 3: point and basically said we are looking for clarity of
Speaker 3: what the president might do next after this. Ruling, Bloomberg Samory,
Speaker 3: horden don't go. Far thank you very much for the
Speaker 3: reporting in the show thus. Far West virginia is Suing,
Speaker 3: apple alleging the company knowingly allowed users to store and
Speaker 3: distribute child sexual abuse material on its iCloud. Platform, apple
Speaker 3: as most of you, know consistently advertised its commitment to
Speaker 3: privacy and has end to end encryption in its iCloud.
Speaker 3: Platform the company says in a, statement protecting the safety
Speaker 3: and privacy of, users especially, children is central to what it.
Speaker 3: Does Though apple didn't specifically comment on this, Case let's
Speaker 3: discuss the allegations with the man behind. Them West Virginia's
Speaker 3: Attorney General john McCuskey And Attorney, general good, Morning thank
Speaker 3: you for your. Time start with the, basics, timing why,
Speaker 3: now and what is it that ultimately you are trying
Speaker 3: to affect here and Want apple to.
Speaker 15: Do, Yeah so to start with, first thank you for
Speaker 15: having me. On West virginia has a child welfare, crisis
Speaker 15: and we have thousands of children who are in and
Speaker 15: out of foster.
Speaker 7: Care and the data.
Speaker 15: Tells us that kids that come from homes where parents
Speaker 15: have substance use disorder or in and out of foster
Speaker 15: care are the most likely to be the ones who
Speaker 15: are harmed in these child trafficking. Rings and So West
Speaker 15: virginia has an exigen problem and this is a huge
Speaker 15: part of. It and we hear from our law enforcement
Speaker 15: partners all the time that when we're trying to find
Speaker 15: these child, predators the people who take these, pictures distribute these,
Speaker 15: pictures use these pictures to groom other, children that they
Speaker 15: have a very very difficult time finding these images when the,
Speaker 15: user the pornographer of the child press editor is saving
Speaker 15: them in an eye. Cloud and so for, us you,
Speaker 15: KNOW i appreciate the fact That apple is committed to user,
Speaker 15: privacy but that privacy ends when you decide to commit
Speaker 15: an egregious felony against a. Child and so it is
Speaker 15: our contention that While apple's privacy can be a very
Speaker 15: good thing for those of us who live in the
Speaker 15: real and legal, world it is the balance needs to
Speaker 15: tip in favor of finding these child predators and removing
Speaker 15: these images from The.
Speaker 3: Internet in twenty twenty, one you, Know apple had put
Speaker 3: out a proprietary set of it's, outlined you, know in
Speaker 3: the filings c sum detection, tools but, ultimately you know
Speaker 3: a year later that they weren't put into. Effect you
Speaker 3: talk about. That what's your assessment of that decision at the.
Speaker 15: Time, Yeah, SO i think the really salient point here
Speaker 15: is that in twenty twenty, Three meta And google provided
Speaker 15: to law enforcement somewhere in the neighborhood of thirty five
Speaker 15: million C sam, images meaning they removed thirty five million
Speaker 15: criminal pornographic images of children from their, cloud and at
Speaker 15: the same time, Period apple removed two hundred and thirty
Speaker 15: Six so on one, side you have the entire market
Speaker 15: removing almost forty million images And apples being less than
Speaker 15: five hundred and so we know the images, exist we
Speaker 15: know they're on The apple, cloud and it is our
Speaker 15: contention here that the safety of these vulnerable children who
Speaker 15: are being abused needs to come Before apple's commitment and
Speaker 15: marketing strategy to PRIVACY.
Speaker 3: Jb apple, alone or are you looking at other large
Speaker 3: technology companies in the context of this, issue and just
Speaker 3: because we short in, time any other attorneys general that
Speaker 3: would or didn't want to participate with you in This,
Speaker 3: Yeah so.
Speaker 15: This is an issue that is being batted around in
Speaker 15: legal circles all over the. Country West virginia likes to go,
Speaker 15: First we like to be a, leader and SO i
Speaker 15: believe that us taking this first step will very likely
Speaker 15: induce other attorney generals to follow and sort of to
Speaker 15: your larger, point if we find other technology platforms that
Speaker 15: are intentionally harboring these kinds of, images a similar lawsuit
Speaker 15: will certainly, follow But apple is the market player that
Speaker 15: is the most committed to ensuring that these images stay
Speaker 15: within their.
Speaker 3: Cloud this, morning THE Us Supreme court struck Down President
Speaker 3: Donald trump's global, tariffs saying he exceeded his authority by
Speaker 3: invoking emergency powers. LAW i have to ask, You Attorney,
Speaker 3: general for your thoughts and your response on.
Speaker 14: That.
Speaker 15: Yeah so The United states has a wonderful system of,
Speaker 15: laws and when The Supreme court, speaks that's the. Law
Speaker 15: we have a president right now who likes to push the.
Speaker 15: Envelope he likes to make, big bold, changes and when
Speaker 15: you do, that you will occasionally run a, foul you,
Speaker 15: know trying as hard as you can to effectuate your.
Speaker 15: Policy and so what the president will do is you'll
Speaker 15: go back analyze which tariffs are still on the, books
Speaker 15: which were affected by this as you just spoke about,
Speaker 15: before which is actually kind of a lot of, them
Speaker 15: and he will work on trying to implement what he
Speaker 15: thinks and WHAT i think is an important policy of
Speaker 15: reshoring so much of This american manufacturing and Holding china
Speaker 15: accountable for their improper trade practices and the ways in
Speaker 15: which they've heard of The american.
Speaker 3: Economy West Virginia Attorney GENERAL. Jb, mccusky thank you for your.
Speaker 3: Time let's get back to. Tariffs break THE scotus decision
Speaker 3: down With bloomberg's economics Correspondent mike. McKee the specific point
Speaker 3: in this because we keep saying struck down global, tariffs
Speaker 3: but it's a ruling that the president exceeded his authority
Speaker 3: under The International Emergency Economics Powers act IAPPA.
Speaker 2: Iepa take it from.
Speaker 3: There might like to help us understand the specificities within
Speaker 3: the ruling and then maybe we can get what happens next.
Speaker 16: Well and basically what the court said is the president
Speaker 16: doesn't have the power to impose a, tax calling international
Speaker 16: trade and emergency and the court, said, basically a tariff
Speaker 16: is a, tax and that's not a power granted by
Speaker 16: THE Aipa. Act so The president has to find other
Speaker 16: ways now to put on the tariffs that he. Wants
Speaker 16: THE aipa tariffs were basically the reciprocal, tariffs the ones
Speaker 16: he put on, everybody along with the fentanyl tariffs that
Speaker 16: he put On mexico And china and some. Others so
Speaker 16: those go, away but there are a number of other
Speaker 16: different methods the president could use that the court said are,
Speaker 16: fine and they noted that the administration could have done
Speaker 16: that in the first. Place section one twenty two is
Speaker 16: maybe their first. Fallback it's a ability of the president
Speaker 16: to put on a fifteen percent tariff for one hundred
Speaker 16: and fifty days if there's a balance of payment. Problem
Speaker 16: and the administration, contends we've got a balance of payment
Speaker 16: problem because we have a trade, Deficit so look for that,
Speaker 16: first and then are the ones that they've already, used
Speaker 16: Like section three point thirty eight to two thirty two
Speaker 16: The National, security when they've put On, china those will
Speaker 16: stay in. Place so there's at this point a question
Speaker 16: only really of what tariffs are they going to, use
Speaker 16: and then how do they add up the, tariffs get
Speaker 16: them as high as they want them to be to
Speaker 16: replace what they're losing FROM.
Speaker 3: Aipa the trade deficit continue to grow throughout last year
Speaker 3: twenty twenty. Five i'm trying to get a sense of
Speaker 3: the sort of economist reaction to. This so economysts are
Speaker 3: basically saying that this could lower the effective tariff rate
Speaker 3: and now support. Growth give me the economics of this morning's.
Speaker 2: Decision, well if.
Speaker 16: You take it in, isolation it does lower the. Terifray
Speaker 16: The Ale Budget lab says it puts it down to
Speaker 16: about nine point one. Percent it wasn't sixteen, percent so
Speaker 16: imports would be, cheaper but that's assuming The president doesn't
Speaker 16: put on any more. Tariffs we don't know what the
Speaker 16: ultimate tariff rate.
Speaker 2: Is going to.
Speaker 16: Be but the trade deficit basically was unchanged from last.
Speaker 16: Year and the reason being is we import a lot of.
Speaker 16: Stuff we like to buy stuff from, overseas and a
Speaker 16: lot of the things that we like to buy we
Speaker 16: don't really make. Here and so even if we are
Speaker 16: not getting things from tariffed, countries we're getting them through other.
Speaker 16: Countries And china sends a lot of stuff To. Vietnam
Speaker 16: vietnam has a tariff but not as high As, china
Speaker 16: so they send stuff To vietnam and then they ship
Speaker 16: it to The United. States that sort of stuff's been going,
Speaker 16: on and we have found new markets to buy things,
Speaker 16: from so it's not really having the Effect the administration
Speaker 16: wants on the trade deficit to bring that. Down they,
Speaker 16: say over, time it'll cause people to build factories here
Speaker 16: and make the things.
Speaker 2: That we buy from. Overseas but it's hard to see us.
Speaker 16: Making making factories to make clothing or to make, toys
Speaker 16: things that aren't very big. Value add we make THE
Speaker 16: ai chips and things like.
Speaker 3: That Mist mike, McKee thank you very. Much so let's
Speaker 3: get out to the north lawn of The White house
Speaker 3: to the latest With. Bloomberg White house Reporter Kate. Sullivan
Speaker 3: and you, KNOW i keep checking that The bloomberg terminal
Speaker 3: for headlines reaction from The. PRESIDENT i don't see any
Speaker 3: directly thus. Far there was reporting FROM. Cnn what do
Speaker 3: we need to?
Speaker 2: Know that's.
Speaker 17: RIGHT i have been refreshing as. Well we have not
Speaker 17: yet heard publicly from The, president from The White House press,
Speaker 17: secretary or anybody in This White house about. This The
Speaker 17: president received the news the ruling came down when he
Speaker 17: was in a closed door meeting this morning with. Governors
Speaker 17: there was a, Breakfast he invited a lot of governors
Speaker 17: to The White. House he, reportedly according TO, cnn called
Speaker 17: the ruling a disgrace and said that he would implement
Speaker 17: a backup. Plan so that's the big question now is
Speaker 17: we're watching to see how The president, responds what the
Speaker 17: actual plan. IS i will say THAT i don't think
Speaker 17: that this is coming as a big surprise to The,
Speaker 17: president to This White. House they have been racing for
Speaker 17: this and talking about potential other avenues that they could
Speaker 17: take for quite some time. Now we also heard The
Speaker 17: president last. Night he gave an economic speech In, georgia
Speaker 17: and he talked a lot about the. Tariffs he defended the,
Speaker 17: tariffs he said, that he, talked he complained about the
Speaker 17: fact that this case was even before The Supreme. Court
Speaker 17: so we've been hearing from The president for quite some
Speaker 17: time now on this, case and now we're just waiting
Speaker 17: to see what the next steps are and how This
Speaker 17: White house.
Speaker 3: Is going to respond just very, Quickly, KATE i know
Speaker 3: that The Treasury secretary has a number of public appearances
Speaker 3: on his, docket but then we Get state of The Union.
Speaker 2: Tuesday that's, next, right that's, right that's.
Speaker 17: RIGHT i do think that this will be. SOMETHING i
Speaker 17: think we will hear from The president before The state
Speaker 17: of The, union but certainly this will be something that
Speaker 17: is hanging over The state of The, union something that
Speaker 17: The president will. Address he is not supposed to travel
Speaker 17: To florida this. Weekend he's supposed to stay here IN.
Speaker 17: Dc and so again we're just you, know like you,
Speaker 17: said just we keep refreshing to see what the reaction
Speaker 17: is going to.
Speaker 3: Be Bloomberg's Kate sullivan and The White, house thank you very.
Speaker 3: Much that does it for this edition Of Bloomberg. Tech an,
Speaker 3: addition where The Supreme court did make a ruling finally
Speaker 3: striking Down President trump's global. Tariffs this is the market.
Speaker 3: Reaction tech outperforming and as that one hundred back near
Speaker 3: session highs up more than a, percent outperformance in chip
Speaker 3: stocks and the rest of the. Story bonds and the dollar.
Speaker 3: Fell we continue to await response from The president of
Speaker 3: The United, states but the tech sector is making.
Speaker 2: Moves this Is Bloomberg tech