Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 3: stories we're following today, Karen.
Speaker 2: The Big lift in Futures comes after President Donald Trump
Speaker 2: said he never had any intention to fire Federal Reserve
Speaker 2: Chair j Powell. The parent walkback comes days after the
Speaker 2: President posted on social media that Powell's termination quote cannot
Speaker 2: come fast enough, and his National Economic Council director told
Speaker 2: reporters that Trump was exploring whether he had the authority
Speaker 2: to remove the FED chair, But when asked directly yesterday
Speaker 2: if he wanted to remove Powell, President Trump had this
Speaker 2: to say.
Speaker 4: Never did the press runs away with things now? I
Speaker 4: have no intention of firing him. I would like to
Speaker 4: see him be a little more active in terms of
Speaker 4: his idea to lower interest Rate's just a perfect time
Speaker 4: to lower interest rates. If he doesn't, is at the
Speaker 4: end to no, it's not.
Speaker 2: The Fed has kept interest rates unchanged this year, after
Speaker 2: lowering them by a full percentage point in the last
Speaker 2: few months of twenty twenty four.
Speaker 3: Well, Nathan, The apparent easing of White House pressure on
Speaker 3: the Fed comes as President Trump indicates a willingness to
Speaker 3: dial down tariff tensions with China. He told reporters he
Speaker 3: plans to be very nice to China and any trade negotiations,
Speaker 3: and that tariffs could be reduced if the two countries
Speaker 3: reach a deal.
Speaker 4: One hundred and forty five percent is very high, and
Speaker 4: it won't be that high.
Speaker 5: Not going to be that high. It got up to there.
Speaker 4: We were talking about fed and all where you know,
Speaker 4: various elements built it up to one hundred and forty five. No,
Speaker 4: it won't be anywhere near that high. It'll come down substantially,
Speaker 4: but it won't be zero. Used to be zero. We
Speaker 4: were just destroyed. China was taking us for a ride,
Speaker 4: and it's not going to happen.
Speaker 3: And top Chinese officials, including the Central bank governor and
Speaker 3: finance minister, are in Washington for World Bank and IMF
Speaker 3: meetings this week.
Speaker 2: In Beijing, Karen China says the door is wide open
Speaker 2: to trade talks. A Foreign Ministry spokesman says China's pointed
Speaker 2: out early on that there are no winners in tariff
Speaker 2: and trade wars. Chinese President she Jinpink says they undermine
Speaker 2: the legitimate rights and interests of all countries and hurt
Speaker 2: the world economic order. China's official Shinwa news agency says
Speaker 2: she made those comments during a meeting with the President
Speaker 2: of Azerbaijan on Nathan.
Speaker 3: The International Monetary Fund is slashing its global growth forecast
Speaker 3: and is warning that trade war could spark even more
Speaker 3: economic pain. The IMF now expects global GDP to grow
Speaker 3: by just two point eight percent, versus its previous estimate
Speaker 3: of three point three percent. IMF's Managing Director Christelina Georgiaeva
Speaker 3: told Bloomberg, the risk of a global recession is growing.
Speaker 6: If we have this cloud of uncertainty coming lower and lower,
Speaker 6: making it difficult for the business community and for households
Speaker 6: to take decisions, we could have a self inflicted injury
Speaker 6: that I guarantee you we would regret.
Speaker 3: Managing Director Kristallina georgia Yeva and the IMF cut its
Speaker 3: growth outlook for China and the US by more than
Speaker 3: most countries and.
Speaker 2: Karen Elon Musk says he plans to keep advocating for
Speaker 2: President Trump to pull back on tariffs, but he says
Speaker 2: the issue is entirely up to the President. Musk says
Speaker 2: tariffs are impacting TESLA, but not as much as its competitors.
Speaker 7: We are I think the least a company, the least
Speaker 7: affected car company with respected tariffs. We do have localize
Speaker 7: supply chains in both America and Europe and China. So
Speaker 7: that's that puts us in a stronger position than any
Speaker 7: of our betters.
Speaker 3: And most comments came on the Tesla earnings conference call,
Speaker 3: but it was the billionaire's remarks about his future work
Speaker 3: with a government that has the stock on the rise
Speaker 3: this morning.
Speaker 7: Starting probably in next month, may my time allocation to
Speaker 7: dose will drop significantly. I'll have to contin you're doing
Speaker 7: it ball. I think we apply the remainder of the
Speaker 7: president's term. Just make sure that the waste and fraud
Speaker 7: that we stop does not come roaring back.
Speaker 3: And jeers Ah Tesla are up six percent in early trading,
Speaker 3: this despite the evmaker reporting first quarter earnings below estimates.
Speaker 2: All another big tech companies making news Karen job cuts
Speaker 2: are coming to Intel. We have more on this exclusive
Speaker 2: story from Bloomberg's John Tucker.
Speaker 8: John, Good morning, Nathan. Intel plans to announce cuts to
Speaker 8: more than twenty percent of the workforce, that's about twenty
Speaker 8: two thousand workers. This as part of the Silicon Valley
Speaker 8: based company's first major restructuring under the new CEO, Lipboo
Speaker 8: Tan Tan, who took over at March, wants to streamline
Speaker 8: management and re establish Intel's engineer driven corporate culture. He
Speaker 8: previously announced the struggling chip giant would sell its majority
Speaker 8: stake and it's altera business, and so he intends to
Speaker 8: spin off some of the Intel non core business. It's
Speaker 8: all part of the turnaround efforts there. Intel has fallen
Speaker 8: behind its rivals at producing ai AI chips. It also
Speaker 8: faces the effects of the Trump administration's trade war with China.
Speaker 8: They do report earnings tomorrow. Intel shares have slid nearly
Speaker 8: twenty percent of the past month. They're down forty three
Speaker 8: percent over the past year. At pre market. The shares
Speaker 8: right now up over three percent in New York. I'm
Speaker 8: John Tucker Bloomberg Radio.
Speaker 3: All right, John, thanks, we'll ever see. Shares of SAP
Speaker 3: are up almost ten percent. Europe's most valuable company reported
Speaker 3: first quarter earnings that top analyst estimates. The German software
Speaker 3: company says profit was fueled by its pivot to cloud services.
Speaker 2: It's pivot back here to the US Karen as the
Speaker 2: standoff continues between the Trump administration and Harvard University over
Speaker 2: more than two billion dollars in federal funds. The nation's
Speaker 2: oldest university sued this week to unlock that money, saying
Speaker 2: the government made unconstitutional demands to overhaul Harvard's governance, hiring,
Speaker 2: and diversity programs. Former Harvard president Larry Summer says the
Speaker 2: university does need to change its approach to anti semitism,
Speaker 2: but he hopes cooler heads prevail.
Speaker 9: I think there's a risk on both sides. I want
Speaker 9: to make sure that Harvard does carry through with necessary reform,
Speaker 9: but Gush, we can't have the government ordering universities around
Speaker 9: in violation of all the processes that are prescribed by law.
Speaker 2: Former Harvard president and current Bloomberg contributor Larry Summers says
Speaker 2: the government should recognize Harvard's making changes and keep the
Speaker 2: money flowing through that process. Summers was a guest on
Speaker 2: Bloomberg's Wall Street Week.
Speaker 3: It's time now for a look at some of the
Speaker 3: other stories making news in New York and around the world,
Speaker 3: and for that we're joined by Bloomberg's Michael Barr.
Speaker 10: Michael, Good morning, Good morning, Karen. A solemn procession brought
Speaker 10: the body of Pope Francis to Saint Peter's Basilica this morning.
Speaker 10: The Pope's body will now lie in state. Heads of
Speaker 10: state are expected for the funeral Saturday in Saint Peter's Square,
Speaker 10: but the three days of public viewing are largely for
Speaker 10: the faithful to mourn the eighty eight year old pope.
Speaker 10: Sister Jeanette Godett is a spiritual leader who served under
Speaker 10: the Pope in Rome.
Speaker 3: He was somebody that I will never forget because he
Speaker 3: was so personal and funny, personal and funny and full
Speaker 3: of joy and hope.
Speaker 10: Francis died Monday after suffering a stroke. Health and Human
Speaker 10: Services Secretary Robert F. Kennedy Junior questioned the need for
Speaker 10: all children to get COVID shots amid reports that the
Speaker 10: US government is considering revoking its current vaccine recommendations. Kennedy
Speaker 10: says President Trump doesn't believe that anybody should get mandatory vaccines,
Speaker 10: and people should make that choice for themselves. His comments
Speaker 10: come after Kennedy announced earlier a government campaign to face
Speaker 10: out petroleum base dies from the nation's food supply, saying
Speaker 10: it makes children sick.
Speaker 5: They want to eat petroleum. They ought to add it themselves.
Speaker 5: At home, but they shouldn't be feeding it to the
Speaker 5: rest of us.
Speaker 10: The move will trigger changes and scores of products on
Speaker 10: grocery store shelves. Crews are battling a forest fire in
Speaker 10: southern New Jersey. It has shut a stretch of the
Speaker 10: Garden State Parkway, sparked evacuations and threatens to snarl commuters.
Speaker 10: The fire has grown to eighty five one hundred acres,
Speaker 10: with three thousand residents evacuated, inching closer to the Oyster
Speaker 10: Creek Nuclear power plant. This resident says he felt helpless
Speaker 10: as flames and smoke spread out.
Speaker 5: I said, they progressed. It was kind of scary. You know,
Speaker 5: you didn't know exactly what was going to happen for
Speaker 5: you leave, Should you stay? What should you take with you?
Speaker 10: The fire is only ten percent contained. Finally, opening statements
Speaker 10: are scheduled for this morning in New York in former
Speaker 10: movie mogul Harvey Weinstein's rape retrial. It will be with
Speaker 10: a majority female jury with seven women, five men, and
Speaker 10: six alternate jurors. Weinstein, who is seventy three, is pleded
Speaker 10: not guilty and denies any rape or sexual assault. Global
Speaker 10: News twenty four hours a day and whenever you want
Speaker 10: it with Bloomberg News now him Michael Barr, and this
Speaker 10: is Bloomberg Carrot.
Speaker 3: All right, Michael Barr, thank you. Time now for the
Speaker 3: Bloomberg scores update, and here's John Stanshauer.
Speaker 5: John, good morning, Good morning, Karen.
Speaker 11: I hopes for the Mets this season. Made it the
Speaker 11: last year's NLCS. Then added one Soto who has not
Speaker 11: broken out yet, but the Mets pitching has been outstanding.
Speaker 11: At two point three seven, they've got MLB's lowest team
Speaker 11: era and the Mets keep winning that city field. Now
Speaker 11: eleven and one, they beat the Phillies five to one.
Speaker 11: This time it was Griffin Cannon working five strong ginnings
Speaker 11: four relievers then heard four scoreless, allowing only one head.
Speaker 11: A little payback for the Cleveland Guardians who lost last
Speaker 11: year's ALCS to the Yankees. They scratched across three runs.
Speaker 11: Sixth innings beat the Yanks for the second night in
Speaker 11: a row, three to two. Red Sox beat Seattle eight
Speaker 11: to three, National seven nothing over the Orioles. Home teams
Speaker 11: one of the NBA Playoffs, Indiana and Oklahoma City, both
Speaker 11: of them have two nothing series leads. The Lakers got
Speaker 11: thirty one points a near triple double from Luka Donciic
Speaker 11: won a low scoring ninety four to eighty five game
Speaker 11: of Minnesota. That series tied at one. The Devils are
Speaker 11: banged up for their series with Carolina. They scored first
Speaker 11: about Formingu's end of the Hurricanes, who won Game one
Speaker 11: four to one, took Game two three to one, also
Speaker 11: winning the Stanley Cup playoffs Florida, Minnesota and Toronto in overtime.
Speaker 11: The NFL Draft agains tomorrow night in Green Bay, and
Speaker 11: the Tennessee Titans have confirmed they are not trading the
Speaker 11: first overall pick unless everyone is wrong. They're taking quarterback
Speaker 11: cam Ward Cleveland. Pick second may well take Colorado's two
Speaker 11: way star Travis Hunter. He plays wide receiver and cornerback.
Speaker 11: If the Browns don't take him, the Giants might with
Speaker 11: the third pick. Here's Giants coach Brian Daboll on Hunters.
Speaker 12: Well, it takes a long time to evaluate him because
Speaker 12: there's a lot of tape. It's a really remarkable what
Speaker 12: he has done and the ability to perform at that level,
Speaker 12: not really getting arrested.
Speaker 11: The Patriots have the fourth overall pick. The Jets have
Speaker 11: the seventh. John Stashawain Bloomberg Sports nan.
Speaker 1: Coast to coast on Bloomberg Radio nationwide on Serious Exam
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business Appum, this is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager. President Donald Trump appears to
Speaker 2: be softening his tone when it comes to the FED
Speaker 2: and China. With both the US and China leveling triple
Speaker 2: digit tariffs against each other, the President now says he
Speaker 2: plans to be very nice in any negotiations.
Speaker 4: We're doing fine with China, We're doing fine with every
Speaker 4: I think almost every country. Everybody wants to have involvement
Speaker 4: with the United States.
Speaker 2: And that was President Trump speaking in the Oval Office
Speaker 2: this morning. We were joined by Bloomberg News Senior editor
Speaker 2: Derek Wallbank. So there we heard the President, Derek saying
Speaker 2: he plans to play nice, not just with China but
Speaker 2: other countries. But where do things stand substantially when it
Speaker 2: comes to the trade dispute between the US and China.
Speaker 13: Good morning, Good morning, Nathan. Let me end underline the
Speaker 13: word that you said, substantially, right, because it's different than sentimentality.
Speaker 13: We've seen a little bit of a sentiment uptick in
Speaker 13: markets following not just the China trade remarks, but also
Speaker 13: the remarks that Trump made about not wanting to fire
Speaker 13: Jay Powell. On the trade side, it's nothing has changed
Speaker 13: on the substance right now. What you've gotten is a
Speaker 13: sort of underlining from the President of something that I
Speaker 13: think he and his team had had been sort of marking,
Speaker 13: which was that the China tariffs right now are intended
Speaker 13: to be at their high water mark, and that provides
Speaker 13: a certain amount of security against potential downside. Additionally, he's
Speaker 13: also sort of talking up the idea that they would
Speaker 13: like to get a deal. But let's stress here, while
Speaker 13: there are plenty of options to begin them, there are
Speaker 13: no current high level between the US and China. And indeed,
Speaker 13: when we're talking about easier deals to make, you would
Speaker 13: think easier deals anyway with top allies, be that Japan,
Speaker 13: be that the United Kingdom, be that Israel, whoever you
Speaker 13: might want to put into there, we still have not
Speaker 13: seen the first of those deals actually come to fruition.
Speaker 13: So the idea that China, which would be hypothetically a
Speaker 13: lot more fraud, the idea that we might be coming
Speaker 13: down anytime soon because a deal might be signed. There's
Speaker 13: not necessarily talks in the works yet, so all of
Speaker 13: that feels a little bit preliminary.
Speaker 2: And there's still a question, isn't there, Derek, about what
Speaker 2: the president wants out of a trade deal with China.
Speaker 2: We've heard a lot of different commentary about what the end.
Speaker 13: Goal is here or with anyone. Really, It's one of
Speaker 13: the things that I think a lot of nations are
Speaker 13: trying to ask themselves right now is what does the
Speaker 13: US want? What is the full scope of demand, and
Speaker 13: what are the key points that they really need to
Speaker 13: insist on. You know, we got some we got some
Speaker 13: clarity with the UK that there may be asks, chiefly
Speaker 13: around agricultural imports about you know, certain specific tariff lines,
Speaker 13: you know, autos, things of that nature. And you know,
Speaker 13: we've heard from Trump say in certain other cases, you know,
Speaker 13: he's mentioned automobiles again or another example, uh with Japan,
Speaker 13: and he's mentioned agriculture and other settings. But what exactly
Speaker 13: that other that that whole thing looks like that will
Speaker 13: get a deal done? Very much remains to be seen.
Speaker 13: You know, you look at Israel pulled off a lot
Speaker 13: of the tariff barriers that they had on the United States,
Speaker 13: before Trump's Liberation Day announcement and got hit with a
Speaker 13: seventeen percent levy. Anyway, it's hard to kind of see
Speaker 13: exactly where the frame of these deals are. Though at
Speaker 13: some point this rhetoric is where, you know, we're in
Speaker 13: a ninety day window. At some point the rhetoric has
Speaker 13: to turn to reality to keep up this sentiment uptick.
Speaker 2: And the rhetoric around the FED is that the President
Speaker 2: says he never had any intention of firing Jay Powell.
Speaker 2: There's the question about whether he could do that, but
Speaker 2: he's still talking about wanting to lower interest rate. So
Speaker 2: where is the pressure on the FED in our last
Speaker 2: thirty seconds?
Speaker 13: Well, I think, Nathan, the pressure on the FED comes
Speaker 13: into the fact that Donald Trump believes he has a
Speaker 13: First Amendment right to say exactly what he wants on
Speaker 13: the FED, and he is going to continue doing it.
Speaker 13: He is going to use that megaphone to say exactly
Speaker 13: what he wants out of the FED right now. What
Speaker 13: he wants his lower rates, He wants them now, he
Speaker 13: wanted them before, but he really wants them to go
Speaker 13: now as quick as possible. And look, even if j.
Speaker 13: Powell's job seems safer right now, he's still going to
Speaker 13: hear from the President about exactly what the President thinks
Speaker 13: he needs to do.
Speaker 3: This is Bloombergy Daybreak, your morning podcast on the stories
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Speaker 2: And I'm Nathan Hager. Join us again tomorrow morning for
Speaker 2: all the news you need to start your day right
Speaker 2: here on Bloomberg Day Ray