WEBVTT - Trump Changes Tone on Powell & Tariffs; Musk Will Refocus on Tesla

0:00:02.520 --> 0:00:07.040
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:10.000 --> 0:00:10.559
<v Speaker 2>Good morning.

0:00:10.600 --> 0:00:13.400
<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

0:00:13.440 --> 0:00:15.440
<v Speaker 3>stories we're following today, Karen.

0:00:15.480 --> 0:00:18.639
<v Speaker 2>The Big lift in Futures comes after President Donald Trump

0:00:18.720 --> 0:00:22.080
<v Speaker 2>said he never had any intention to fire Federal Reserve

0:00:22.200 --> 0:00:25.720
<v Speaker 2>Chair j Powell. The parent walkback comes days after the

0:00:25.760 --> 0:00:29.560
<v Speaker 2>President posted on social media that Powell's termination quote cannot

0:00:29.640 --> 0:00:33.320
<v Speaker 2>come fast enough, and his National Economic Council director told

0:00:33.360 --> 0:00:36.320
<v Speaker 2>reporters that Trump was exploring whether he had the authority

0:00:36.360 --> 0:00:39.080
<v Speaker 2>to remove the FED chair, But when asked directly yesterday

0:00:39.120 --> 0:00:41.800
<v Speaker 2>if he wanted to remove Powell, President Trump had this

0:00:41.880 --> 0:00:42.479
<v Speaker 2>to say.

0:00:42.920 --> 0:00:45.640
<v Speaker 4>Never did the press runs away with things now? I

0:00:45.680 --> 0:00:48.479
<v Speaker 4>have no intention of firing him. I would like to

0:00:48.520 --> 0:00:51.159
<v Speaker 4>see him be a little more active in terms of

0:00:51.200 --> 0:00:54.720
<v Speaker 4>his idea to lower interest Rate's just a perfect time

0:00:54.760 --> 0:00:57.800
<v Speaker 4>to lower interest rates. If he doesn't, is at the

0:00:57.920 --> 0:00:59.400
<v Speaker 4>end to no, it's not.

0:01:00.120 --> 0:01:03.040
<v Speaker 2>The Fed has kept interest rates unchanged this year, after

0:01:03.120 --> 0:01:05.520
<v Speaker 2>lowering them by a full percentage point in the last

0:01:05.520 --> 0:01:06.959
<v Speaker 2>few months of twenty twenty four.

0:01:07.560 --> 0:01:10.200
<v Speaker 3>Well, Nathan, The apparent easing of White House pressure on

0:01:10.240 --> 0:01:13.440
<v Speaker 3>the Fed comes as President Trump indicates a willingness to

0:01:13.600 --> 0:01:17.200
<v Speaker 3>dial down tariff tensions with China. He told reporters he

0:01:17.240 --> 0:01:20.920
<v Speaker 3>plans to be very nice to China and any trade negotiations,

0:01:21.160 --> 0:01:23.759
<v Speaker 3>and that tariffs could be reduced if the two countries

0:01:23.800 --> 0:01:24.440
<v Speaker 3>reach a deal.

0:01:24.640 --> 0:01:27.080
<v Speaker 4>One hundred and forty five percent is very high, and

0:01:27.319 --> 0:01:28.320
<v Speaker 4>it won't be that high.

0:01:28.640 --> 0:01:30.480
<v Speaker 5>Not going to be that high. It got up to there.

0:01:30.560 --> 0:01:32.760
<v Speaker 4>We were talking about fed and all where you know,

0:01:32.959 --> 0:01:36.720
<v Speaker 4>various elements built it up to one hundred and forty five. No,

0:01:36.800 --> 0:01:41.600
<v Speaker 4>it won't be anywhere near that high. It'll come down substantially,

0:01:41.640 --> 0:01:45.800
<v Speaker 4>but it won't be zero. Used to be zero. We

0:01:45.800 --> 0:01:50.160
<v Speaker 4>were just destroyed. China was taking us for a ride,

0:01:50.280 --> 0:01:51.919
<v Speaker 4>and it's not going to happen.

0:01:52.520 --> 0:01:55.480
<v Speaker 3>And top Chinese officials, including the Central bank governor and

0:01:55.560 --> 0:01:58.920
<v Speaker 3>finance minister, are in Washington for World Bank and IMF

0:01:59.120 --> 0:02:00.160
<v Speaker 3>meetings this week.

0:02:00.360 --> 0:02:03.080
<v Speaker 2>In Beijing, Karen China says the door is wide open

0:02:03.200 --> 0:02:06.040
<v Speaker 2>to trade talks. A Foreign Ministry spokesman says China's pointed

0:02:06.080 --> 0:02:08.160
<v Speaker 2>out early on that there are no winners in tariff

0:02:08.200 --> 0:02:11.400
<v Speaker 2>and trade wars. Chinese President she Jinpink says they undermine

0:02:11.440 --> 0:02:13.919
<v Speaker 2>the legitimate rights and interests of all countries and hurt

0:02:13.919 --> 0:02:17.640
<v Speaker 2>the world economic order. China's official Shinwa news agency says

0:02:17.680 --> 0:02:20.000
<v Speaker 2>she made those comments during a meeting with the President

0:02:20.000 --> 0:02:22.240
<v Speaker 2>of Azerbaijan on Nathan.

0:02:22.240 --> 0:02:25.919
<v Speaker 3>The International Monetary Fund is slashing its global growth forecast

0:02:25.960 --> 0:02:28.959
<v Speaker 3>and is warning that trade war could spark even more

0:02:29.000 --> 0:02:33.040
<v Speaker 3>economic pain. The IMF now expects global GDP to grow

0:02:33.040 --> 0:02:36.080
<v Speaker 3>by just two point eight percent, versus its previous estimate

0:02:36.080 --> 0:02:40.239
<v Speaker 3>of three point three percent. IMF's Managing Director Christelina Georgiaeva

0:02:40.280 --> 0:02:43.320
<v Speaker 3>told Bloomberg, the risk of a global recession is growing.

0:02:43.720 --> 0:02:48.280
<v Speaker 6>If we have this cloud of uncertainty coming lower and lower,

0:02:49.680 --> 0:02:54.760
<v Speaker 6>making it difficult for the business community and for households

0:02:55.919 --> 0:03:00.560
<v Speaker 6>to take decisions, we could have a self inflicted injury

0:03:00.680 --> 0:03:03.040
<v Speaker 6>that I guarantee you we would regret.

0:03:03.639 --> 0:03:06.880
<v Speaker 3>Managing Director Kristallina georgia Yeva and the IMF cut its

0:03:06.880 --> 0:03:10.040
<v Speaker 3>growth outlook for China and the US by more than

0:03:10.120 --> 0:03:11.080
<v Speaker 3>most countries and.

0:03:11.160 --> 0:03:13.600
<v Speaker 2>Karen Elon Musk says he plans to keep advocating for

0:03:13.680 --> 0:03:15.919
<v Speaker 2>President Trump to pull back on tariffs, but he says

0:03:15.960 --> 0:03:18.720
<v Speaker 2>the issue is entirely up to the President. Musk says

0:03:18.760 --> 0:03:22.000
<v Speaker 2>tariffs are impacting TESLA, but not as much as its competitors.

0:03:22.600 --> 0:03:26.520
<v Speaker 7>We are I think the least a company, the least

0:03:26.520 --> 0:03:32.440
<v Speaker 7>affected car company with respected tariffs. We do have localize

0:03:32.440 --> 0:03:35.960
<v Speaker 7>supply chains in both America and Europe and China. So

0:03:37.320 --> 0:03:40.120
<v Speaker 7>that's that puts us in a stronger position than any

0:03:40.120 --> 0:03:40.920
<v Speaker 7>of our betters.

0:03:41.640 --> 0:03:45.080
<v Speaker 3>And most comments came on the Tesla earnings conference call,

0:03:45.200 --> 0:03:47.800
<v Speaker 3>but it was the billionaire's remarks about his future work

0:03:47.800 --> 0:03:50.040
<v Speaker 3>with a government that has the stock on the rise

0:03:50.120 --> 0:03:50.640
<v Speaker 3>this morning.

0:03:51.160 --> 0:03:56.640
<v Speaker 7>Starting probably in next month, may my time allocation to

0:03:56.760 --> 0:04:00.400
<v Speaker 7>dose will drop significantly. I'll have to contin you're doing

0:04:00.440 --> 0:04:02.520
<v Speaker 7>it ball. I think we apply the remainder of the

0:04:02.600 --> 0:04:05.240
<v Speaker 7>president's term. Just make sure that the waste and fraud

0:04:05.280 --> 0:04:07.640
<v Speaker 7>that we stop does not come roaring back.

0:04:07.920 --> 0:04:10.800
<v Speaker 3>And jeers Ah Tesla are up six percent in early trading,

0:04:10.840 --> 0:04:14.560
<v Speaker 3>this despite the evmaker reporting first quarter earnings below estimates.

0:04:14.760 --> 0:04:18.160
<v Speaker 2>All another big tech companies making news Karen job cuts

0:04:18.279 --> 0:04:21.440
<v Speaker 2>are coming to Intel. We have more on this exclusive

0:04:21.560 --> 0:04:23.720
<v Speaker 2>story from Bloomberg's John Tucker.

0:04:23.839 --> 0:04:27.200
<v Speaker 8>John, Good morning, Nathan. Intel plans to announce cuts to

0:04:27.240 --> 0:04:30.640
<v Speaker 8>more than twenty percent of the workforce, that's about twenty

0:04:30.720 --> 0:04:33.520
<v Speaker 8>two thousand workers. This as part of the Silicon Valley

0:04:33.560 --> 0:04:37.279
<v Speaker 8>based company's first major restructuring under the new CEO, Lipboo

0:04:37.400 --> 0:04:41.000
<v Speaker 8>Tan Tan, who took over at March, wants to streamline

0:04:41.040 --> 0:04:45.600
<v Speaker 8>management and re establish Intel's engineer driven corporate culture. He

0:04:45.760 --> 0:04:48.839
<v Speaker 8>previously announced the struggling chip giant would sell its majority

0:04:48.880 --> 0:04:51.760
<v Speaker 8>stake and it's altera business, and so he intends to

0:04:51.800 --> 0:04:55.280
<v Speaker 8>spin off some of the Intel non core business. It's

0:04:55.320 --> 0:04:58.320
<v Speaker 8>all part of the turnaround efforts there. Intel has fallen

0:04:58.360 --> 0:05:01.120
<v Speaker 8>behind its rivals at producing ai AI chips. It also

0:05:01.200 --> 0:05:04.720
<v Speaker 8>faces the effects of the Trump administration's trade war with China.

0:05:05.160 --> 0:05:08.799
<v Speaker 8>They do report earnings tomorrow. Intel shares have slid nearly

0:05:08.880 --> 0:05:11.839
<v Speaker 8>twenty percent of the past month. They're down forty three

0:05:11.880 --> 0:05:14.920
<v Speaker 8>percent over the past year. At pre market. The shares

0:05:15.000 --> 0:05:17.680
<v Speaker 8>right now up over three percent in New York. I'm

0:05:17.760 --> 0:05:19.080
<v Speaker 8>John Tucker Bloomberg Radio.

0:05:19.279 --> 0:05:21.760
<v Speaker 3>All right, John, thanks, we'll ever see. Shares of SAP

0:05:21.880 --> 0:05:25.200
<v Speaker 3>are up almost ten percent. Europe's most valuable company reported

0:05:25.200 --> 0:05:28.680
<v Speaker 3>first quarter earnings that top analyst estimates. The German software

0:05:28.720 --> 0:05:32.040
<v Speaker 3>company says profit was fueled by its pivot to cloud services.

0:05:32.120 --> 0:05:34.080
<v Speaker 2>It's pivot back here to the US Karen as the

0:05:34.120 --> 0:05:38.520
<v Speaker 2>standoff continues between the Trump administration and Harvard University over

0:05:38.560 --> 0:05:41.480
<v Speaker 2>more than two billion dollars in federal funds. The nation's

0:05:41.520 --> 0:05:44.720
<v Speaker 2>oldest university sued this week to unlock that money, saying

0:05:44.760 --> 0:05:49.720
<v Speaker 2>the government made unconstitutional demands to overhaul Harvard's governance, hiring,

0:05:49.800 --> 0:05:53.640
<v Speaker 2>and diversity programs. Former Harvard president Larry Summer says the

0:05:53.720 --> 0:05:56.719
<v Speaker 2>university does need to change its approach to anti semitism,

0:05:57.000 --> 0:05:58.720
<v Speaker 2>but he hopes cooler heads prevail.

0:05:59.200 --> 0:06:02.560
<v Speaker 9>I think there's a risk on both sides. I want

0:06:02.600 --> 0:06:08.159
<v Speaker 9>to make sure that Harvard does carry through with necessary reform,

0:06:08.640 --> 0:06:13.679
<v Speaker 9>but Gush, we can't have the government ordering universities around

0:06:14.040 --> 0:06:18.240
<v Speaker 9>in violation of all the processes that are prescribed by law.

0:06:18.640 --> 0:06:22.240
<v Speaker 2>Former Harvard president and current Bloomberg contributor Larry Summers says

0:06:22.279 --> 0:06:25.120
<v Speaker 2>the government should recognize Harvard's making changes and keep the

0:06:25.160 --> 0:06:28.520
<v Speaker 2>money flowing through that process. Summers was a guest on

0:06:28.560 --> 0:06:29.960
<v Speaker 2>Bloomberg's Wall Street Week.

0:06:33.440 --> 0:06:34.880
<v Speaker 3>It's time now for a look at some of the

0:06:34.920 --> 0:06:37.560
<v Speaker 3>other stories making news in New York and around the world,

0:06:37.600 --> 0:06:39.840
<v Speaker 3>and for that we're joined by Bloomberg's Michael Barr.

0:06:39.920 --> 0:06:43.560
<v Speaker 10>Michael, Good morning, Good morning, Karen. A solemn procession brought

0:06:43.600 --> 0:06:46.800
<v Speaker 10>the body of Pope Francis to Saint Peter's Basilica this morning.

0:06:51.920 --> 0:06:55.359
<v Speaker 10>The Pope's body will now lie in state. Heads of

0:06:55.440 --> 0:06:58.760
<v Speaker 10>state are expected for the funeral Saturday in Saint Peter's Square,

0:06:59.320 --> 0:07:02.120
<v Speaker 10>but the three days of public viewing are largely for

0:07:02.160 --> 0:07:05.120
<v Speaker 10>the faithful to mourn the eighty eight year old pope.

0:07:05.200 --> 0:07:09.040
<v Speaker 10>Sister Jeanette Godett is a spiritual leader who served under

0:07:09.040 --> 0:07:09.800
<v Speaker 10>the Pope in Rome.

0:07:10.320 --> 0:07:12.520
<v Speaker 3>He was somebody that I will never forget because he

0:07:12.600 --> 0:07:16.360
<v Speaker 3>was so personal and funny, personal and funny and full

0:07:16.400 --> 0:07:17.760
<v Speaker 3>of joy and hope.

0:07:17.800 --> 0:07:21.680
<v Speaker 10>Francis died Monday after suffering a stroke. Health and Human

0:07:21.720 --> 0:07:25.120
<v Speaker 10>Services Secretary Robert F. Kennedy Junior questioned the need for

0:07:25.200 --> 0:07:28.520
<v Speaker 10>all children to get COVID shots amid reports that the

0:07:28.680 --> 0:07:33.960
<v Speaker 10>US government is considering revoking its current vaccine recommendations. Kennedy

0:07:34.040 --> 0:07:38.280
<v Speaker 10>says President Trump doesn't believe that anybody should get mandatory vaccines,

0:07:38.520 --> 0:07:42.080
<v Speaker 10>and people should make that choice for themselves. His comments

0:07:42.120 --> 0:07:46.320
<v Speaker 10>come after Kennedy announced earlier a government campaign to face

0:07:46.400 --> 0:07:50.200
<v Speaker 10>out petroleum base dies from the nation's food supply, saying

0:07:50.200 --> 0:07:51.320
<v Speaker 10>it makes children sick.

0:07:51.640 --> 0:07:54.200
<v Speaker 5>They want to eat petroleum. They ought to add it themselves.

0:07:54.240 --> 0:07:57.400
<v Speaker 5>At home, but they shouldn't be feeding it to the

0:07:57.440 --> 0:07:58.120
<v Speaker 5>rest of us.

0:07:58.760 --> 0:08:02.160
<v Speaker 10>The move will trigger changes and scores of products on

0:08:02.240 --> 0:08:05.720
<v Speaker 10>grocery store shelves. Crews are battling a forest fire in

0:08:05.800 --> 0:08:08.600
<v Speaker 10>southern New Jersey. It has shut a stretch of the

0:08:08.600 --> 0:08:13.680
<v Speaker 10>Garden State Parkway, sparked evacuations and threatens to snarl commuters.

0:08:14.040 --> 0:08:16.840
<v Speaker 10>The fire has grown to eighty five one hundred acres,

0:08:17.080 --> 0:08:21.200
<v Speaker 10>with three thousand residents evacuated, inching closer to the Oyster

0:08:21.280 --> 0:08:25.080
<v Speaker 10>Creek Nuclear power plant. This resident says he felt helpless

0:08:25.120 --> 0:08:26.880
<v Speaker 10>as flames and smoke spread out.

0:08:27.160 --> 0:08:29.520
<v Speaker 5>I said, they progressed. It was kind of scary. You know,

0:08:29.640 --> 0:08:31.560
<v Speaker 5>you didn't know exactly what was going to happen for

0:08:31.720 --> 0:08:34.040
<v Speaker 5>you leave, Should you stay? What should you take with you?

0:08:34.520 --> 0:08:38.120
<v Speaker 10>The fire is only ten percent contained. Finally, opening statements

0:08:38.160 --> 0:08:41.440
<v Speaker 10>are scheduled for this morning in New York in former

0:08:41.520 --> 0:08:45.600
<v Speaker 10>movie mogul Harvey Weinstein's rape retrial. It will be with

0:08:45.679 --> 0:08:49.800
<v Speaker 10>a majority female jury with seven women, five men, and

0:08:50.000 --> 0:08:53.720
<v Speaker 10>six alternate jurors. Weinstein, who is seventy three, is pleded

0:08:53.800 --> 0:08:57.959
<v Speaker 10>not guilty and denies any rape or sexual assault. Global

0:08:57.960 --> 0:09:00.320
<v Speaker 10>News twenty four hours a day and whenever you want

0:09:00.320 --> 0:09:02.720
<v Speaker 10>it with Bloomberg News now him Michael Barr, and this

0:09:03.040 --> 0:09:04.160
<v Speaker 10>is Bloomberg Carrot.

0:09:04.200 --> 0:09:10.719
<v Speaker 3>All right, Michael Barr, thank you. Time now for the

0:09:10.720 --> 0:09:13.839
<v Speaker 3>Bloomberg scores update, and here's John Stanshauer.

0:09:13.920 --> 0:09:15.280
<v Speaker 5>John, good morning, Good morning, Karen.

0:09:15.360 --> 0:09:17.280
<v Speaker 11>I hopes for the Mets this season. Made it the

0:09:17.320 --> 0:09:20.719
<v Speaker 11>last year's NLCS. Then added one Soto who has not

0:09:20.920 --> 0:09:24.439
<v Speaker 11>broken out yet, but the Mets pitching has been outstanding.

0:09:24.480 --> 0:09:27.520
<v Speaker 11>At two point three seven, they've got MLB's lowest team

0:09:27.520 --> 0:09:30.000
<v Speaker 11>era and the Mets keep winning that city field. Now

0:09:30.040 --> 0:09:32.480
<v Speaker 11>eleven and one, they beat the Phillies five to one.

0:09:32.520 --> 0:09:35.320
<v Speaker 11>This time it was Griffin Cannon working five strong ginnings

0:09:35.360 --> 0:09:38.880
<v Speaker 11>four relievers then heard four scoreless, allowing only one head.

0:09:38.880 --> 0:09:41.720
<v Speaker 11>A little payback for the Cleveland Guardians who lost last

0:09:41.760 --> 0:09:44.720
<v Speaker 11>year's ALCS to the Yankees. They scratched across three runs.

0:09:44.720 --> 0:09:46.839
<v Speaker 11>Sixth innings beat the Yanks for the second night in

0:09:46.880 --> 0:09:48.839
<v Speaker 11>a row, three to two. Red Sox beat Seattle eight

0:09:48.880 --> 0:09:52.320
<v Speaker 11>to three, National seven nothing over the Orioles. Home teams

0:09:52.360 --> 0:09:54.800
<v Speaker 11>one of the NBA Playoffs, Indiana and Oklahoma City, both

0:09:54.800 --> 0:09:57.160
<v Speaker 11>of them have two nothing series leads. The Lakers got

0:09:57.160 --> 0:09:59.720
<v Speaker 11>thirty one points a near triple double from Luka Donciic

0:10:00.120 --> 0:10:02.920
<v Speaker 11>won a low scoring ninety four to eighty five game

0:10:02.960 --> 0:10:05.120
<v Speaker 11>of Minnesota. That series tied at one. The Devils are

0:10:05.120 --> 0:10:08.280
<v Speaker 11>banged up for their series with Carolina. They scored first

0:10:08.280 --> 0:10:11.199
<v Speaker 11>about Formingu's end of the Hurricanes, who won Game one

0:10:11.280 --> 0:10:13.760
<v Speaker 11>four to one, took Game two three to one, also

0:10:13.760 --> 0:10:17.960
<v Speaker 11>winning the Stanley Cup playoffs Florida, Minnesota and Toronto in overtime.

0:10:18.000 --> 0:10:20.720
<v Speaker 11>The NFL Draft agains tomorrow night in Green Bay, and

0:10:20.760 --> 0:10:24.079
<v Speaker 11>the Tennessee Titans have confirmed they are not trading the

0:10:24.120 --> 0:10:27.440
<v Speaker 11>first overall pick unless everyone is wrong. They're taking quarterback

0:10:27.520 --> 0:10:30.800
<v Speaker 11>cam Ward Cleveland. Pick second may well take Colorado's two

0:10:30.800 --> 0:10:34.679
<v Speaker 11>way star Travis Hunter. He plays wide receiver and cornerback.

0:10:34.720 --> 0:10:37.760
<v Speaker 11>If the Browns don't take him, the Giants might with

0:10:37.880 --> 0:10:41.359
<v Speaker 11>the third pick. Here's Giants coach Brian Daboll on Hunters.

0:10:41.440 --> 0:10:43.480
<v Speaker 12>Well, it takes a long time to evaluate him because

0:10:43.559 --> 0:10:46.680
<v Speaker 12>there's a lot of tape. It's a really remarkable what

0:10:46.840 --> 0:10:52.040
<v Speaker 12>he has done and the ability to perform at that level,

0:10:53.080 --> 0:10:54.840
<v Speaker 12>not really getting arrested.

0:10:54.840 --> 0:10:57.520
<v Speaker 11>The Patriots have the fourth overall pick. The Jets have

0:10:57.600 --> 0:11:00.840
<v Speaker 11>the seventh. John Stashawain Bloomberg Sports nan.

0:11:03.000 --> 0:11:07.240
<v Speaker 1>Coast to coast on Bloomberg Radio nationwide on Serious Exam

0:11:07.280 --> 0:11:10.120
<v Speaker 1>and around the world on Bloomberg dot Com and the

0:11:10.160 --> 0:11:13.240
<v Speaker 1>Bloomberg Business Appum, this is Bloomberg Daybreak.

0:11:13.400 --> 0:11:16.360
<v Speaker 2>Good morning, I'm Nathan Hager. President Donald Trump appears to

0:11:16.400 --> 0:11:18.520
<v Speaker 2>be softening his tone when it comes to the FED

0:11:18.920 --> 0:11:22.400
<v Speaker 2>and China. With both the US and China leveling triple

0:11:22.440 --> 0:11:25.000
<v Speaker 2>digit tariffs against each other, the President now says he

0:11:25.040 --> 0:11:28.520
<v Speaker 2>plans to be very nice in any negotiations.

0:11:28.760 --> 0:11:31.640
<v Speaker 4>We're doing fine with China, We're doing fine with every

0:11:32.040 --> 0:11:35.880
<v Speaker 4>I think almost every country. Everybody wants to have involvement

0:11:35.960 --> 0:11:37.000
<v Speaker 4>with the United States.

0:11:37.240 --> 0:11:39.679
<v Speaker 2>And that was President Trump speaking in the Oval Office

0:11:39.760 --> 0:11:42.400
<v Speaker 2>this morning. We were joined by Bloomberg News Senior editor

0:11:42.600 --> 0:11:45.839
<v Speaker 2>Derek Wallbank. So there we heard the President, Derek saying

0:11:45.840 --> 0:11:48.840
<v Speaker 2>he plans to play nice, not just with China but

0:11:49.120 --> 0:11:53.760
<v Speaker 2>other countries. But where do things stand substantially when it

0:11:53.800 --> 0:11:57.480
<v Speaker 2>comes to the trade dispute between the US and China.

0:11:57.480 --> 0:12:00.800
<v Speaker 13>Good morning, Good morning, Nathan. Let me end underline the

0:12:00.840 --> 0:12:05.240
<v Speaker 13>word that you said, substantially, right, because it's different than sentimentality.

0:12:06.360 --> 0:12:08.640
<v Speaker 13>We've seen a little bit of a sentiment uptick in

0:12:08.720 --> 0:12:14.160
<v Speaker 13>markets following not just the China trade remarks, but also

0:12:14.200 --> 0:12:16.559
<v Speaker 13>the remarks that Trump made about not wanting to fire

0:12:17.040 --> 0:12:23.240
<v Speaker 13>Jay Powell. On the trade side, it's nothing has changed

0:12:23.320 --> 0:12:27.400
<v Speaker 13>on the substance right now. What you've gotten is a

0:12:27.559 --> 0:12:31.600
<v Speaker 13>sort of underlining from the President of something that I

0:12:31.640 --> 0:12:34.559
<v Speaker 13>think he and his team had had been sort of marking,

0:12:34.640 --> 0:12:38.960
<v Speaker 13>which was that the China tariffs right now are intended

0:12:39.000 --> 0:12:41.560
<v Speaker 13>to be at their high water mark, and that provides

0:12:41.920 --> 0:12:48.280
<v Speaker 13>a certain amount of security against potential downside. Additionally, he's

0:12:48.320 --> 0:12:51.000
<v Speaker 13>also sort of talking up the idea that they would

0:12:51.040 --> 0:12:54.199
<v Speaker 13>like to get a deal. But let's stress here, while

0:12:54.240 --> 0:12:57.280
<v Speaker 13>there are plenty of options to begin them, there are

0:12:57.440 --> 0:13:02.640
<v Speaker 13>no current high level between the US and China. And indeed,

0:13:02.720 --> 0:13:05.960
<v Speaker 13>when we're talking about easier deals to make, you would

0:13:06.000 --> 0:13:09.760
<v Speaker 13>think easier deals anyway with top allies, be that Japan,

0:13:09.920 --> 0:13:13.440
<v Speaker 13>be that the United Kingdom, be that Israel, whoever you

0:13:13.520 --> 0:13:16.640
<v Speaker 13>might want to put into there, we still have not

0:13:16.880 --> 0:13:21.200
<v Speaker 13>seen the first of those deals actually come to fruition.

0:13:21.440 --> 0:13:24.480
<v Speaker 13>So the idea that China, which would be hypothetically a

0:13:24.559 --> 0:13:28.480
<v Speaker 13>lot more fraud, the idea that we might be coming

0:13:28.520 --> 0:13:32.480
<v Speaker 13>down anytime soon because a deal might be signed. There's

0:13:32.640 --> 0:13:36.280
<v Speaker 13>not necessarily talks in the works yet, so all of

0:13:36.320 --> 0:13:37.959
<v Speaker 13>that feels a little bit preliminary.

0:13:38.120 --> 0:13:40.800
<v Speaker 2>And there's still a question, isn't there, Derek, about what

0:13:41.040 --> 0:13:44.520
<v Speaker 2>the president wants out of a trade deal with China.

0:13:44.600 --> 0:13:48.200
<v Speaker 2>We've heard a lot of different commentary about what the end.

0:13:48.080 --> 0:13:52.240
<v Speaker 13>Goal is here or with anyone. Really, It's one of

0:13:52.280 --> 0:13:53.920
<v Speaker 13>the things that I think a lot of nations are

0:13:53.960 --> 0:13:57.040
<v Speaker 13>trying to ask themselves right now is what does the

0:13:57.160 --> 0:14:01.080
<v Speaker 13>US want? What is the full scope of demand, and

0:14:01.120 --> 0:14:03.360
<v Speaker 13>what are the key points that they really need to

0:14:03.480 --> 0:14:06.360
<v Speaker 13>insist on. You know, we got some we got some

0:14:06.520 --> 0:14:10.439
<v Speaker 13>clarity with the UK that there may be asks, chiefly

0:14:10.520 --> 0:14:16.120
<v Speaker 13>around agricultural imports about you know, certain specific tariff lines,

0:14:16.160 --> 0:14:18.800
<v Speaker 13>you know, autos, things of that nature. And you know,

0:14:18.880 --> 0:14:22.120
<v Speaker 13>we've heard from Trump say in certain other cases, you know,

0:14:22.160 --> 0:14:26.240
<v Speaker 13>he's mentioned automobiles again or another example, uh with Japan,

0:14:26.360 --> 0:14:30.119
<v Speaker 13>and he's mentioned agriculture and other settings. But what exactly

0:14:30.160 --> 0:14:33.520
<v Speaker 13>that other that that whole thing looks like that will

0:14:33.560 --> 0:14:36.480
<v Speaker 13>get a deal done? Very much remains to be seen.

0:14:36.560 --> 0:14:38.760
<v Speaker 13>You know, you look at Israel pulled off a lot

0:14:38.800 --> 0:14:41.600
<v Speaker 13>of the tariff barriers that they had on the United States,

0:14:41.920 --> 0:14:45.000
<v Speaker 13>before Trump's Liberation Day announcement and got hit with a

0:14:45.000 --> 0:14:49.920
<v Speaker 13>seventeen percent levy. Anyway, it's hard to kind of see

0:14:49.960 --> 0:14:52.880
<v Speaker 13>exactly where the frame of these deals are. Though at

0:14:52.920 --> 0:14:55.200
<v Speaker 13>some point this rhetoric is where, you know, we're in

0:14:55.240 --> 0:14:57.720
<v Speaker 13>a ninety day window. At some point the rhetoric has

0:14:57.760 --> 0:15:01.080
<v Speaker 13>to turn to reality to keep up this sentiment uptick.

0:15:01.440 --> 0:15:04.200
<v Speaker 2>And the rhetoric around the FED is that the President

0:15:04.240 --> 0:15:07.200
<v Speaker 2>says he never had any intention of firing Jay Powell.

0:15:07.200 --> 0:15:09.600
<v Speaker 2>There's the question about whether he could do that, but

0:15:09.640 --> 0:15:12.520
<v Speaker 2>he's still talking about wanting to lower interest rate. So

0:15:12.560 --> 0:15:14.440
<v Speaker 2>where is the pressure on the FED in our last

0:15:14.440 --> 0:15:15.160
<v Speaker 2>thirty seconds?

0:15:15.600 --> 0:15:17.720
<v Speaker 13>Well, I think, Nathan, the pressure on the FED comes

0:15:17.760 --> 0:15:19.640
<v Speaker 13>into the fact that Donald Trump believes he has a

0:15:19.640 --> 0:15:21.880
<v Speaker 13>First Amendment right to say exactly what he wants on

0:15:21.920 --> 0:15:24.520
<v Speaker 13>the FED, and he is going to continue doing it.

0:15:24.600 --> 0:15:27.080
<v Speaker 13>He is going to use that megaphone to say exactly

0:15:27.120 --> 0:15:28.920
<v Speaker 13>what he wants out of the FED right now. What

0:15:29.000 --> 0:15:31.040
<v Speaker 13>he wants his lower rates, He wants them now, he

0:15:31.120 --> 0:15:33.680
<v Speaker 13>wanted them before, but he really wants them to go

0:15:33.800 --> 0:15:36.280
<v Speaker 13>now as quick as possible. And look, even if j.

0:15:36.440 --> 0:15:39.480
<v Speaker 13>Powell's job seems safer right now, he's still going to

0:15:39.560 --> 0:15:42.240
<v Speaker 13>hear from the President about exactly what the President thinks

0:15:42.320 --> 0:15:43.040
<v Speaker 13>he needs to do.

0:15:43.520 --> 0:15:46.960
<v Speaker 3>This is Bloombergy Daybreak, your morning podcast on the stories

0:15:47.000 --> 0:15:50.080
<v Speaker 3>making news from Wall Street to Washington and beyond.

0:15:50.280 --> 0:15:52.720
<v Speaker 2>Look for us on your podcast feed by six am

0:15:52.720 --> 0:15:56.120
<v Speaker 2>Eastern each morning, on Apple, Spotify, or anywhere else you listen.

0:15:56.360 --> 0:15:59.200
<v Speaker 3>You can also listen live each morning starting at five

0:15:59.240 --> 0:16:01.960
<v Speaker 3>am Wall Street Time on Bloomberg eleven three to zero

0:16:01.960 --> 0:16:04.840
<v Speaker 3>in New York, Bloomberg in ninety nine to one in Washington,

0:16:04.920 --> 0:16:08.880
<v Speaker 3>Bloomberg ninety two nine in Boston, and nationwide on serious

0:16:09.080 --> 0:16:10.640
<v Speaker 3>XM Channel one twenty one.

0:16:11.040 --> 0:16:13.760
<v Speaker 2>Plus listen coast to coast on the Bloomberg Business app

0:16:13.800 --> 0:16:16.600
<v Speaker 2>now with Apple CarPlay and Android Atto interfaces.

0:16:16.840 --> 0:16:19.840
<v Speaker 3>And don't forget to subscribe to Bloomberg News Now. It's

0:16:19.880 --> 0:16:22.600
<v Speaker 3>the latest news whenever you want it in five minutes

0:16:22.680 --> 0:16:25.800
<v Speaker 3>or less. Search Bloomberg News Now on your favorite podcast

0:16:25.840 --> 0:16:30.000
<v Speaker 3>platform to stay informed all day long. I'm Karen Moscow.

0:16:29.800 --> 0:16:32.320
<v Speaker 2>And I'm Nathan Hager. Join us again tomorrow morning for

0:16:32.400 --> 0:16:34.320
<v Speaker 2>all the news you need to start your day right

0:16:34.320 --> 0:16:35.800
<v Speaker 2>here on Bloomberg Day Ray