WEBVTT - White House Text Breach Fallout, New Tariffs Teased On today's podcast:    

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

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 3>stories we're following today.

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<v Speaker 2>Karen, we begin with what appears to be a major

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<v Speaker 2>security breach within President Trump's inner circle. A prominent Washington journalist,

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<v Speaker 2>Atlantic Editor in chief Jeffrey Goldberg, says he was included

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<v Speaker 2>in a high level text thread about plans to bomb

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<v Speaker 2>Hoo they targets in Yemen hours before the operation was

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<v Speaker 2>carried out. Goldberg wrote a thirty five hundred word piece

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<v Speaker 2>about it in the Atlantic and discussed it with ABC News.

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<v Speaker 4>I get a message request to connect with Mike Waltz,

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<v Speaker 4>who's a national security advisor or someone who's purporting to

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<v Speaker 4>be Mike Waltz. Not an unusual thing in Washington. I'm

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<v Speaker 4>a journalist. I've met him in the past, so I

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<v Speaker 4>accept it.

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<v Speaker 2>Jeffrey Goldberg says the chat on signal included operational details

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<v Speaker 2>from Defense Secretary Pete Hegseth, including information about targets, weapons,

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<v Speaker 2>and attack sequencing. It also revealed some of the Trump

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<v Speaker 2>administration's internal power dynamics. At one point, Vice President JD.

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<v Speaker 2>Vance signaled he opposed the strikes, only to be shot

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<v Speaker 2>down by an account labeled sm Apparently White House Deputy

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<v Speaker 2>Chief of Staff Stephen Miller.

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<v Speaker 3>Well Nathan the White House National Security Council says the

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<v Speaker 3>text chain appears authentic and they're reviewing how an inadvertent

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<v Speaker 3>phone number was added to the signaled chat. Defense Secretary

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<v Speaker 3>Pete Hegseth says national security was not put at risk.

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<v Speaker 2>I've heard it was characterized nobody was texting war plans,

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<v Speaker 2>and that's all I have to say about that.

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<v Speaker 3>Defense Secretary Hegseeth spoke to reporters in Hawaii, and the

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<v Speaker 3>White House says President Trump has utmost confidence in his team,

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<v Speaker 3>including National Security Director Mike Walls. But the breach has

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<v Speaker 3>Democrats in Congress calling for hearings, including Colorado's Jason Crowe.

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<v Speaker 4>The House Intelligence Committee has our Worldwide Threats hearing on Wednesday,

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<v Speaker 4>and you bet there's gonna be a lot of questions

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<v Speaker 4>about this.

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<v Speaker 2>Well, it still remains to be seen what will actually

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<v Speaker 2>happen in Congress. If anything, we get more on that

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<v Speaker 2>from Bloomberg New Senior editor Derek Wallbank on.

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<v Speaker 5>The political side, is going to put Congressional Republicans in

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<v Speaker 5>one world of a mind, because they have so far

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<v Speaker 5>in the second Trump administration not had any appetite really

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<v Speaker 5>at all to try and check the White House, as

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<v Speaker 5>the White House has gone about doing exactly what it wants. Remember,

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<v Speaker 5>Republicans have unfettered control of Washington just about and all

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<v Speaker 5>of the Congressional committees that would lead potential investigations into

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<v Speaker 5>something of this nature are run by Republicans. At the

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<v Speaker 5>same time Democrats are braying for consequences, they see an

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<v Speaker 5>opportunity to move on to the front foot politically after

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<v Speaker 5>being really on the back foot for the entirety of

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<v Speaker 5>this administration to date.

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<v Speaker 2>Bloomberg's Derek Wallbank notes even harmless leaks and other agencies

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<v Speaker 2>have led to investigations in the FBI or from Inspectors

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<v Speaker 2>General Nathan.

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<v Speaker 3>Futures are lower after yesterday's big gains on Wall Street.

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<v Speaker 3>Stocks registered one of their best sessions of the year,

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<v Speaker 3>with the Nasdaq one hundred adding two point two percent.

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<v Speaker 3>Amid signs US trade sanctions will be narrower than feared,

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<v Speaker 3>President Trump also hinted that he may give some countries

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<v Speaker 3>a break on impending reciprocal tariffs. We may take less

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<v Speaker 3>than what they're charging because they've charged us so much, I.

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<v Speaker 6>Don't think they could take it.

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<v Speaker 4>In other words, they've charged us so much that I'm

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<v Speaker 4>embarrassed to charge them what they've charged us.

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<v Speaker 5>But it'll be substantial and you'll be hearing about that.

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<v Speaker 3>On April second, intermarkser here on Bloomberg, Trump did say

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<v Speaker 3>he will announce tariffs on automobile imports in the coming days.

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<v Speaker 2>Now, the latest stun efforts to end the war Ukraine,

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<v Speaker 2>karen Us and Russian officials held twelve hours of talks

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<v Speaker 2>in Saudi Arabia yesterday, and the two sides are expected

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<v Speaker 2>to release a statement detailing their progress. Ukraine's President Vladimir

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<v Speaker 2>Zelenski says strong measures will be needed to keep Russia

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<v Speaker 2>on the path of peace.

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<v Speaker 7>We need a movement towards real peace, towards guaranteed security,

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<v Speaker 7>and we all need this in Ukraine and Europe and America,

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<v Speaker 7>everyone in the world who wants peace and international relations.

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<v Speaker 7>Russia is the only entity that is dragging out this

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<v Speaker 7>war and mocking our people and the whole world. And

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<v Speaker 7>to pressure Russia towards peace, strong things, strong steps are needed.

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<v Speaker 2>It was Ukraine's President vladimir's Alenski, speaking through an interpreter.

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<v Speaker 2>Zelenski and President Trump still have not signed a pact

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<v Speaker 2>to give the US part ownership of Ukraine's natural resources.

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<v Speaker 3>Well, we turned to the economy now, Nathan, and the

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<v Speaker 3>head of the Atlanta FED, Rafael Bostick tells Bloomberg's Michael

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<v Speaker 3>McKee that he sees just one rate cuttage likely this

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<v Speaker 3>year rather than cho with tariff's impeding progress on disinflation.

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<v Speaker 8>So I was a too. I moved to one mainly

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<v Speaker 8>because I think we're going to see inflation be very

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<v Speaker 8>bumpy and not moved dramatically and in a clear way

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<v Speaker 8>to the two percent target, because that's being pushed back.

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<v Speaker 8>I think the appropriate path for policy is also going

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<v Speaker 8>to have to be pushed back and getting us to

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<v Speaker 8>that neutral level.

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<v Speaker 3>And Atlanta FED chief Rafael Bosstik now sees price growth

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<v Speaker 3>returning to the Fed's two percent goal one point in

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<v Speaker 3>early twenty twenty seven. Here the full conversation on the

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<v Speaker 3>Bloomberg Talks podcast feed, or watch it on the Bloomberg

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<v Speaker 3>Podcast page on YouTube.

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<v Speaker 2>In company news, Karen Bowing reportedly wants to withdraw its

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<v Speaker 2>deal with US prosecutors to plead guilty to misleading regulators

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<v Speaker 2>prior to two deadly seven thirty seven Max crashes. The

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<v Speaker 2>Wall Street Journal is reporting the Planemaker is pursuing the

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<v Speaker 2>maneuver in a bid for potential leniency from the Trump administration,

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<v Speaker 2>which is reviewing pending white collar criminal cases on.

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<v Speaker 3>The battle for electric vehicle supremacy. Nathan and China's b

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<v Speaker 3>whyd's sales last year leapfrogging elon Musk. Tesla BYD's sales

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<v Speaker 3>last year surpassed the one hundred billion dollar mark, beating

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<v Speaker 3>Tesla by more than two billion. Still, ARC Investment Management's

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<v Speaker 3>Kathy Wood remains bullish on Tesla. She spoke with The

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<v Speaker 3>Bloomberg at the HSBC Global Investment Summit in Hong Kong.

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<v Speaker 9>Within that Drogo taxis will account for ninety percent of

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<v Speaker 9>the value of the company in five years, and we're

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<v Speaker 9>on record on record saying we believe in in five

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<v Speaker 9>years the stock will hit twenty six hundred dollars.

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<v Speaker 3>If Tesla hits Kathy Wood stock price, that would be

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<v Speaker 3>about ten times more than its current price. And it's

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<v Speaker 3>time now for a look at some of the other

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<v Speaker 3>stories making news in New York and around the world,

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<v Speaker 3>and for that we're joined by Bloomberg's Michael Barr Michael,

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<v Speaker 3>good Morning.

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<v Speaker 10>Good morning, Karen. The Trump administration is challenging the court

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<v Speaker 10>order by a federal judge that aimed to halt the

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<v Speaker 10>deportation of Venezuelan migrants to El Salvador. Yesterday, a DC

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<v Speaker 10>Circuit Court of Appeals heard their case. Judge James Boseberg's

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<v Speaker 10>order was not followed by Trump administration officials, and hundreds

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<v Speaker 10>of migrants are at a prison in El Salvador. The

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<v Speaker 10>Trump administration claimed it was justified to porting the migrants

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<v Speaker 10>because of gang affiliations. During the hearing, one of the

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<v Speaker 10>judges on the three judge panel, Patricia Millet Grill DOJ

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<v Speaker 10>Deputy Assistant Attorney General, drew insane.

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<v Speaker 6>People weren't given notice, they weren't told where they were going.

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<v Speaker 6>They were given Those people on those plans on that

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<v Speaker 6>Saturday had no opportunity to file habeas or any type

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<v Speaker 6>of action to challenge the removal under the AEA. And

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<v Speaker 6>like you've agreed that two of those airplanes people were

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<v Speaker 6>removed under the AEA.

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<v Speaker 10>Judge Millard went on to say Nazi's got better treatment

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<v Speaker 10>under the Alien Enemies Act. The United Nations says it

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<v Speaker 10>will lessen its presence in the Gaza strip. The move

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<v Speaker 10>following an Israeli tank strike that hit one of its

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<v Speaker 10>compounds last week, killing one stafford from Bulgaria and wounding

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<v Speaker 10>five other employees. United Nations spokesperson Stefan du Jark.

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<v Speaker 11>The Secretary General has taken the difficult decision to reduce

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<v Speaker 11>the United Nations footprint in Gaza, even as humanitarian needs

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<v Speaker 11>sore and our concerned over the protection of civilians intensifies.

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<v Speaker 10>Meanwhile, Al Jazeera says an Israeli airstrike killed on its

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<v Speaker 10>journalist in Gaza. Monday today marks Equal Payday. It symbolizes

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<v Speaker 10>how far into the year a woman must work to

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<v Speaker 10>earn as much as a man earned in the previous year.

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<v Speaker 10>On average, the wage gap is even greater for women

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<v Speaker 10>of color and disabled women. The gender justice nonprofit Equal

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<v Speaker 10>Rights Advocates says that it's widened last year, and it

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<v Speaker 10>warns that it could get even worse as Trump administration

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<v Speaker 10>officials try to strip away protections from workplace discrimination. National

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<v Speaker 10>campaign director Deborah of Agents, we.

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<v Speaker 3>Are pushing back on the administration's gutting of civil rights

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<v Speaker 3>enforcement agencies, the very agencies that protect us from implant Discrimination.

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<v Speaker 10>National Campaign Director Deborah Veagan says women earn about seventy

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<v Speaker 10>five cents on the dollar when compared to all men.

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<v Speaker 10>Global news twenty four hours a day and whenever you

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<v Speaker 10>want it with Bloomberg News Now Michael Barr, and this

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<v Speaker 10>is Bloomberg.

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<v Speaker 5>Karen.

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<v Speaker 3>All right, Michael Barr, thank you time now for the

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<v Speaker 3>Bloomberg Sports Update, brought to you by Tri State Outie.

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<v Speaker 3>Here's John stash Hour, John, good.

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<v Speaker 12>Morning, Good morning Caring. It's a race to the finish

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<v Speaker 12>of the NHL regular season for the last playoff spot

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<v Speaker 12>in the East. As it now it belongs to Montreal,

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<v Speaker 12>with the Rangers and Islanders right behind. Canadians at seventy

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<v Speaker 12>five points have a game tonight in Saint Louis. The

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<v Speaker 12>Rangers at seventy four. They begin a three game California

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<v Speaker 12>trip tonight in La. The Islanders are at seventy four.

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<v Speaker 12>They hosted Columbus at leeds of two nothing to three

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<v Speaker 12>to two, lost four to three in a shootout. The

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<v Speaker 12>Devil's also at home, also lost four to three in

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<v Speaker 12>a shootout to Vancouver. The Nets at Berkleys lost to

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<v Speaker 12>Dallas one twenty to one oh one. The MAVs are

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<v Speaker 12>at the Garden tonight to face the Knicks, who are

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<v Speaker 12>hoping to get Jalen Brunson back soon for the sprained ankle,

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<v Speaker 12>and the Celtics win at Sacramento, Jason Tatum sprained his

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<v Speaker 12>ankle the NCAA Women's turning the star player for top

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<v Speaker 12>seed at usc Juju Watkins tore her acl She averages

0:09:58.400 --> 0:10:01.080
<v Speaker 12>twenty five points a game. The Yukon Star page. Becker's

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<v Speaker 12>t had a career I thirty four points in the

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<v Speaker 12>huskies easy win. The Mets after a game with the

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<v Speaker 12>Yankees in Fort Saint Lucy, now off to Houston for

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<v Speaker 12>Opening Day Thursday. One Sodo's got a fifteen year Mets contract,

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<v Speaker 12>Excited to start his first season.

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<v Speaker 1>See, we have a really tied the group.

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<v Speaker 7>We have a lot of guys.

0:10:17.800 --> 0:10:19.520
<v Speaker 4>We have a lot of hotfielders, we have a lot

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<v Speaker 4>of anfielders.

0:10:20.200 --> 0:10:21.640
<v Speaker 3>So I think we are.

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<v Speaker 10>Really loaded as a team.

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<v Speaker 1>Can't waiting to see these guys that is going out there.

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<v Speaker 7>Definitely, we have to go through some fat cities and

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<v Speaker 7>the spring training and so dealing with some injuries and

0:10:32.200 --> 0:10:33.880
<v Speaker 7>stuff like that, but I think we're going to be fine.

0:10:34.080 --> 0:10:36.560
<v Speaker 12>The Yankees finished the Spring Today in Miami, then come

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<v Speaker 12>home for Thursday's opener with Milwaukee John Stashaward. Bloomberg Sports

0:10:40.640 --> 0:10:41.480
<v Speaker 12>carry neither.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

0:10:48.000 --> 0:10:50.840
<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning. I'm Nathan Hager, and the White House appears

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<v Speaker 2>to be in damage control after Atlantic Magazine Editor in

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<v Speaker 2>chief jeff Free Goldberg posted a lengthy story saying he

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<v Speaker 2>was included in a high level text chain about plans

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<v Speaker 2>to attack the Houthis in Yemen. While the Whitehouse says

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<v Speaker 2>the messages in Goldberg's story of pure authentic, Defense Secretary

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<v Speaker 2>Pete Hegseth says, quote, nobody was texting war plans.

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<v Speaker 13>This is the guy the pedals in garbage. What he does.

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<v Speaker 2>I would love to comment on the hoothy campaign, and

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<v Speaker 2>that was Defense Secretary Pete Hegseth commenting in Hawaii after

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<v Speaker 2>this story broke in Washington, and we're joined now by

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<v Speaker 2>Bloomberg New Senior editor Bill Ferries. Bill from what Jeffrey

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<v Speaker 2>Goldberg is reporting in this lengthy story on the Atlantic

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<v Speaker 2>website it is difficult to say if we have seen

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<v Speaker 2>a breach like this before.

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<v Speaker 13>Good morning, Hey, good morning, Nathan.

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<v Speaker 10>Yeah.

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<v Speaker 13>Really just jaw dropping story there from Jeffrey Goldberg, just

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<v Speaker 13>you know, giving insights into how this signal group was

0:11:53.040 --> 0:11:56.880
<v Speaker 13>created and what they were discussing, not realizing that there

0:11:56.960 --> 0:12:01.120
<v Speaker 13>was a journalist invited into the group with them, and

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<v Speaker 13>Goldberg talks about how he wasn't sure if this was

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<v Speaker 13>you know, a hoax and attempt at fishing temp against

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<v Speaker 13>him or something else until he's sitting in the parking

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<v Speaker 13>lot after hearing that strikes are about to be unleashed

0:12:16.360 --> 0:12:19.280
<v Speaker 13>on Yemen and he's waiting and waiting, and then goes

0:12:19.320 --> 0:12:22.880
<v Speaker 13>on to Twitter to see the first reports confirming that

0:12:23.040 --> 0:12:26.880
<v Speaker 13>basically everything he'd been seeing unspool on his signal app

0:12:27.720 --> 0:12:32.680
<v Speaker 13>was true. So really shocking breach of security norms and

0:12:32.720 --> 0:12:36.240
<v Speaker 13>also a huge embarrassment for an administration that has really

0:12:36.320 --> 0:12:39.640
<v Speaker 13>kind of campaigned and tried to well. I was taken

0:12:39.720 --> 0:12:42.280
<v Speaker 13>pride in what it says is it's you know, strong,

0:12:42.800 --> 0:12:46.400
<v Speaker 13>strong position against security breaches.

0:12:46.679 --> 0:12:49.360
<v Speaker 2>I mean yeah, I mean it goes into the idea

0:12:49.440 --> 0:12:51.800
<v Speaker 2>that the Pentagon has said it was going to go

0:12:51.880 --> 0:12:55.199
<v Speaker 2>after leakers the last time there was I mean, there

0:12:55.200 --> 0:12:58.600
<v Speaker 2>wasn't an incident like this. But when details about Elon

0:12:58.720 --> 0:13:01.760
<v Speaker 2>Musk going to the Pentagon a meeting came out, Defense

0:13:01.800 --> 0:13:04.800
<v Speaker 2>Secretary heg Seth came out and said that they were

0:13:04.920 --> 0:13:06.880
<v Speaker 2>going to really go after the leakers. I mean, what

0:13:06.920 --> 0:13:08.559
<v Speaker 2>could that mean for this message?

0:13:09.440 --> 0:13:11.680
<v Speaker 13>Well, it's gonna you know, I think we're still going

0:13:11.760 --> 0:13:14.800
<v Speaker 13>to see the repercussions playing out, you know again, Yeah,

0:13:14.800 --> 0:13:18.439
<v Speaker 13>this administration. You know, this is a president who faced

0:13:18.840 --> 0:13:23.040
<v Speaker 13>charges of mishandling classified material at mar A Lago, who

0:13:23.160 --> 0:13:27.320
<v Speaker 13>ran against Hillary Clinton years ago partly on criticism of

0:13:27.360 --> 0:13:31.880
<v Speaker 13>her decision to use a private server. So it's been

0:13:31.920 --> 0:13:34.480
<v Speaker 13>a part of their DNA to say that they're strong

0:13:34.600 --> 0:13:39.840
<v Speaker 13>on classification and protecting national security. And to see this

0:13:39.920 --> 0:13:43.360
<v Speaker 13>happen with not just senior aids but really the most

0:13:43.400 --> 0:13:46.880
<v Speaker 13>senior aides and Marco Rubio is on their Defense Secretary

0:13:46.920 --> 0:13:50.520
<v Speaker 13>Pete heg Seth, Toulci Gabbard, the d and I it's

0:13:50.600 --> 0:13:53.040
<v Speaker 13>just really stunning, and I think it raises a lot

0:13:53.080 --> 0:13:57.040
<v Speaker 13>of big questions about has this happened before with other

0:13:57.120 --> 0:14:00.839
<v Speaker 13>people who were inadvertently invited into chat group? Why are

0:14:00.840 --> 0:14:06.920
<v Speaker 13>they discussing such sensitive information in a chat app like Signal.

0:14:07.040 --> 0:14:10.240
<v Speaker 13>I don't think it's any secret that Washington officials like

0:14:10.320 --> 0:14:12.920
<v Speaker 13>to use messaging apps, but you typically do it for

0:14:12.960 --> 0:14:18.120
<v Speaker 13>scheduling meetings and other kind of not top secret issues.

0:14:18.480 --> 0:14:21.520
<v Speaker 13>To go into battle plans is something really we haven't

0:14:21.520 --> 0:14:22.040
<v Speaker 13>seen before.

0:14:22.320 --> 0:14:26.080
<v Speaker 2>In the early moments here, Bill, we've seen sort of

0:14:26.080 --> 0:14:30.880
<v Speaker 2>circling the wagons around National Security Advisor Mike Waltz, who

0:14:30.960 --> 0:14:34.320
<v Speaker 2>Goldberg says invited him into this chat. But can we

0:14:34.360 --> 0:14:36.680
<v Speaker 2>see heads roll over this, or at least can we

0:14:36.720 --> 0:14:38.080
<v Speaker 2>see hearings over this?

0:14:39.000 --> 0:14:41.360
<v Speaker 13>I think for sure we're going to see hearings. I mean,

0:14:41.520 --> 0:14:45.040
<v Speaker 13>just by a remarkable stroke of timing. You know, you

0:14:45.120 --> 0:14:49.960
<v Speaker 13>have the heads of the intelligence agencies, including D and

0:14:50.040 --> 0:14:53.200
<v Speaker 13>I Gabbert expected up on the Hill twice this week

0:14:53.280 --> 0:14:56.920
<v Speaker 13>to talk about worldwide threats. But you're right, I think

0:14:56.960 --> 0:14:59.120
<v Speaker 13>there's gonna be a lot of questions about Mike Waltz.

0:14:59.160 --> 0:15:01.960
<v Speaker 13>I think the indications we're getting from the White House

0:15:02.000 --> 0:15:03.920
<v Speaker 13>is that they're going to see how this plays out.

0:15:04.400 --> 0:15:08.360
<v Speaker 13>He's already lasted longer than Donald Trump's first national security

0:15:08.360 --> 0:15:12.280
<v Speaker 13>advisor in his first term, Michael Flynn lasted but This

0:15:12.320 --> 0:15:14.920
<v Speaker 13>is a huge breach by the person who's seen as

0:15:15.160 --> 0:15:19.920
<v Speaker 13>supposed to be really the arbiter of the national security

0:15:20.200 --> 0:15:21.800
<v Speaker 13>agencies for the White House.

0:15:22.080 --> 0:15:24.440
<v Speaker 2>Just thirty seconds left. Bill, What could this mean for

0:15:24.480 --> 0:15:26.600
<v Speaker 2>information sharing among allies?

0:15:27.320 --> 0:15:28.680
<v Speaker 13>Yeah, I think it's going to raise a lot of

0:15:28.760 --> 0:15:32.480
<v Speaker 13>questions among other countries about what they can share and

0:15:32.880 --> 0:15:35.400
<v Speaker 13>with the US whether they can trust it. But the

0:15:35.400 --> 0:15:38.920
<v Speaker 13>reality is other countries, even a European allies, they rely

0:15:39.040 --> 0:15:43.320
<v Speaker 13>a lot more on US intelligence than the US relies

0:15:43.360 --> 0:15:46.040
<v Speaker 13>on them. So it will probably still be in their

0:15:46.040 --> 0:15:47.920
<v Speaker 13>benefit to share info, but I think it's going to

0:15:48.000 --> 0:15:50.240
<v Speaker 13>raise some questions about how much they share.

0:15:50.560 --> 0:15:53.960
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<v Speaker 7>Ray