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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: Good morning, I'm John Tucker.

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Speaker 3: And I'm Karen Moscow. Here are the stories we're following

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Speaker 3: today and.

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Speaker 2: Karen, futures are dropping on heels. A warning from in Vidia,

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Speaker 2: the chip giant says it's going to have to report

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Speaker 2: about five and a half billion dollars in write downs

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Speaker 2: during the current quarter. That's because the Trump administration has

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Speaker 2: barred in video from selling its H twenty chip in China.

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Speaker 2: And Bloomberg's Mike Shepherd says the government is concerned the

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Speaker 2: chip could be used in or diverted to a supercomputer

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Speaker 2: in China.

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Speaker 4: And that is one of the concerns that the US

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Speaker 4: government has, is that, in fact, by using a different

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Speaker 4: package or stack of these Age twenty chips. And remember

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Speaker 4: the H twenty chip has already been modified and scaled

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Speaker 4: down for the China market, and that's owing to restrictions

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Speaker 4: going back to twenty twenty two. And Nvidia has been

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Speaker 4: on the cross heres since the Biden administration for the

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Speaker 4: advanced chips produces and sells and have been selling into

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Speaker 4: the China market, and they have been looking to make

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Speaker 4: sure that China doesn't get its hands on the best.

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Speaker 2: Stuff, Bloomberg's Mike Shepherd in Washington. Shares of Nvidia right

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Speaker 2: now down more than five percent in early trading.

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Speaker 3: Well John also adding it to weakness to chip stocks.

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Speaker 3: This morning, a disappointing report from Dutch ship equipment maker

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Speaker 3: ASML Holding. The company reported orders for the first quarter

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Speaker 3: that were more than one point one billion dollars less

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Speaker 3: than expected. ASML is also warning that it doesn't know

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Speaker 3: how to quantify the impact from recent tariff announcements, which

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Speaker 3: are threatening to upend the semiconductor industry, and shares of

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Speaker 3: ASML are down more than five percent in Europe.

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Speaker 2: And Karen Tesla reportedly suspending plans to ship components from

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Speaker 2: China with cybercab and semi electric trucks in the US.

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Speaker 2: Reuter says Elon Musk was prepared to absorb the additional

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Speaker 2: costs when President Trump imposed the thirty four percent tariff

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Speaker 2: on Chinese goods, but could not do so when the

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Speaker 2: terraf went beyond that. Shares of Tesla them more than

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Speaker 2: three percent at early trading.

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Speaker 3: Now, John, let's get the latest on the escalating trade

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Speaker 3: war between the US and China. Bloomberg News has learned

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Speaker 3: China wants to see a number of steps from President

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Speaker 3: Trump's administration before agreeing to trade talks, that include showing

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Speaker 3: more respect by reigning in disparaging remarks by members of

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Speaker 3: his cabinet. Meanwhile, President Trump is calling on China to

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Speaker 3: reach out for trade negotiations. And here's White House Press

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Speaker 3: Secretary Caroline Lovitt.

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Speaker 5: The ball is in China's court. China needs to make

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Speaker 5: a deal with us. We don't have to make a

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Speaker 5: deal with them. There's no difference between China and any

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Speaker 5: other country, except they are much larger. And China wants

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Speaker 5: what we have. What every country wants what we have

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Speaker 5: the American consumer, or to put in another way, they

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Speaker 5: need our money.

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Speaker 3: White House Press Secretary Caroline Levitt, speaking yesterday, sources now

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Speaker 3: Bloomberg that Beijing also wants the US to appoint a

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Speaker 3: point person for talks who has the President's support and

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Speaker 3: can help prepare a deal that Trump and Chinese leader

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Speaker 3: Shieshin Pin can sign when they meet.

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Speaker 2: And we have fresh economic data out of China. The

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Speaker 2: economy there grew via faster than expected five to four

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Speaker 2: zero point four percent in the first three months of

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Speaker 2: the year. The surprising strength in the world's second largest

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Speaker 2: economy comes as concerns mount over the potential impact of

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Speaker 2: one hundred and forty five percent US tariffs on Chinese goods.

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Speaker 3: Well, John is investors await the latest tariff developments. They

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Speaker 3: will have a key speech by j Powell to digest,

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Speaker 3: and we get a preview with the Bloomberg's Michael McKee.

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Speaker 6: Corporate leaders, economists, investors, and FED officials all have the

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Speaker 6: same problem. Nobody knows what Donald Trump is actually going

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Speaker 6: to do on tariffs. FED Governor Chris Waller said Monday,

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Speaker 6: it's impossible now to forecast how the economy will develop,

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Speaker 6: which makes FED Chairman Jay Powell's job much harder. Today,

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Speaker 6: in his Chicago speech, the chair will attempt to reassure

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Speaker 6: jiterary markets that no matter what happens, the Central Bank

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Speaker 6: will be on the job, able to raise rates if

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Speaker 6: Trump's new taxes increase inflation, or cut rates if they

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Speaker 6: lead the economy just slow significantly. He said all that before.

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Speaker 6: Of course, it's not clear what he could add to

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Speaker 6: that message today. Michael McKee, Bloomberg Radio.

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Speaker 3: All right, Michael, thank you, Well, Bloomberg will bring you

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Speaker 3: Jay Powell's full remarks from the Economic Club of Chicago.

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Speaker 3: Coverage begins at one thirty Wall Street time on Bloomberg Radio,

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Speaker 3: Bloomberg Television, and the Bloomberg Podcast page on YouTube.

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Speaker 2: And looking over in Europe now, UK inflation slipped for

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Speaker 2: a second straight month. A consumer prices rose just two

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Speaker 2: point six percent of the twelve months to March. This

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Speaker 2: was driven by cheaper computer games, falling fuel prices, and

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Speaker 2: unchanged food costs.

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Speaker 3: Well back here in the US, John it appears the

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Speaker 3: move to increase taxes for the ultra wealthy as gaining

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Speaker 3: traction among lawmakers, including Republicans, and Bloomberg's Amy Morris has

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Speaker 3: more from Washington.

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Speaker 7: Republicans in the White House, the Senate and the House

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Speaker 7: are considering a new tax bracket for the wealthiest Americans,

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Speaker 7: with the House proposal setting a forty percent rate for

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Speaker 7: those earning one million dollars or more per year. These

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Speaker 7: talks are part of the effort to pay for a

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Speaker 7: sweeping tax bill by the end of this year, with

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Speaker 7: options including offsetting the cost of an expanded state and

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Speaker 7: local tax deduction with a millionaire's bracket. A White House

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Speaker 7: official tells Bloomberg President Trump is open to the idea

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Speaker 7: of a new top tax bracket, but for an income

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Speaker 7: greater than a million dollars. In Washington, Amy Moore as

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Speaker 7: Bloomberg Radio Right.

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Speaker 2: Thanks Amy. The government's anti trust trial seeking to break

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Speaker 2: up Meta Platforms that continues today. In testimony yesterday was

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Speaker 2: revealed seven years ago, Mark Zuckerberg considered spinning off Instagram

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Speaker 2: from Facebook, fearing the company might be broken up in

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Speaker 2: the next five to ten years. With the Federal Trade

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Speaker 2: Commission is now suing Meta to break it up. Alludging

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Speaker 2: its acquisitions of Instagram at WhatsApp created a social media monopoly,

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Speaker 2: while Meta argues it faces many competitors.

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Speaker 3: And John the White House is starting a new media

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Speaker 3: policy that restricts wire services access to the president. That

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Speaker 3: move blocks a traditional press pools that served billions of readers.

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Speaker 3: It comes after a judge ruled the White House and

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Speaker 3: violated the Associated Press's free speech by banning it because

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Speaker 3: it disagreed with the outlet's decision not to rename the

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Speaker 3: Gulf of Mexico. The White House says it will ultimately

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Speaker 3: give Press Secretary Caroline Lovett the final say over who

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Speaker 3: gets to question her boss. Time now for a look

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Speaker 3: at some of the other stories making news in New

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Speaker 3: York and around the world. And for that we're joined

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Speaker 3: by Bloomberg's Michael Barr Michael, Good Morning.

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Speaker 8: Good Morning Karen. A federal judge says she will order

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Speaker 8: sworn testimony by Trump administration officials to determine if they

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Speaker 8: complied with their orders to facilitate the return of Kilmar

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Speaker 8: Abrego Garcia, the Maryland man was mistakenly deported to a

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Speaker 8: notorious L. Salvador prison last month. The US Supreme Court

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Speaker 8: ordered the Trump administration to return him, but the administration

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Speaker 8: has so far refused, claiming he's in the MS thirteen gang.

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Speaker 8: White House spokesperson Caroline Lovett, there.

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Speaker 5: Is never going to be a world in which this

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Speaker 5: is an individual who's going to live peaceful life in

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Speaker 5: Maryland because he is a foreign terrorist and MS thirteen

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Speaker 5: gang member.

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Speaker 8: Abrego Garcia's attorneys deny the gang allegations and say he

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Speaker 8: was never charged with a crime. Abrego Garcia's wife, Jennifer Pasquez, sura,

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Speaker 8: as we continue.

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Speaker 9: Through Holy Week, my heart aches for my husband, Whosha

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Speaker 9: had been here leading our Easter prayers. Instead, I find

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Speaker 9: myself pleading with the Trump administration and the Buchel administration

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Speaker 9: to stop playing political games with the life of Kilmar.

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Speaker 8: Harvey Weinstein is back in the New York court as

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Speaker 8: jury's selection begins for his retrial on sexual assault charges.

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Speaker 8: The legal representative for one of his accusers spoke outside

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Speaker 8: court Tuesday, attorney Lindsay Goldbrum.

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Speaker 3: Over the next several weeks, these women will testify about

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Speaker 3: these heinous acts that have been committed against them, and

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Speaker 3: intimate details of their lives will come out.

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Speaker 8: New York's highest court over turned Weinstein's conviction in his

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Speaker 8: twenty twenty trial. Finally, we've lost a game show legend,

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Speaker 8: and now.

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Speaker 6: From Television City in Hollywood, here's your host, Don Gambit,

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Speaker 6: Wink Martin Dale.

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Speaker 10: Thank you very much.

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Speaker 8: Weak Martindale, host of such hit game shows as Gambit,

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Speaker 8: which debut in nineteen seventy two and Tiktak Dooe, has died.

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Speaker 8: Martin Dale began his career in radio. This publicist says

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Speaker 8: Martindale died after battling lampoma for a year. Wink Martindale

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Speaker 8: was ninety one Global News, twenty four hours a day

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Speaker 8: and whatever you wanted with Bloomberg News. Now, I'm Michael Barr,

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Speaker 8: this is Bloomberg.

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Speaker 3: Karen All right, Michael Barr, thank you time now for

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Speaker 3: the Bloomberg Sports Update. Here's John Stashaur John, Good morning

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Speaker 3: morning here.

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Speaker 11: Max Freed was the Yankees big free agent signing so

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Speaker 11: far as good as advertised. He's three and I was

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Speaker 11: era is under two at the stadium, the Yanks field

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Speaker 11: to support him against Kansas City into wilda sixth inning

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Speaker 11: infield single, three straight walks and they had a run

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Speaker 11: in and three on for Jason Domingo.

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Speaker 10: So one to two, blind Dragons pas down the lu

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Speaker 10: field Live Chisham scores, ful, Py scores, they're a leaving

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Speaker 10: home wells who well scores. That's up faces clearing double

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Speaker 10: for Dominguez and the Yankees have taken a four two leads.

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Speaker 11: Yeah, that was the final over the Royals. Yes Network

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Speaker 11: to call in Minnesota, Metsica that home runs from both

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Speaker 11: the Alonzo and Juan Soto. Alonzo's fifth of the season

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Speaker 11: came first inning. Soto now homers and back to back games,

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Speaker 11: but the Twins scored in five straight innings and they

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Speaker 11: won six to three. The Red Sox won seven to

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Speaker 11: four at Tampa Bay. Alex Bregman two home runs, five hits,

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Speaker 11: four RBIs Nationals behind Jake Irvin won three nothing at Pittsburgh.

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Speaker 11: The NBA postseason is underway pair of wins by home

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Speaker 11: teams or Orlando by twenty five over Atlanta, so the

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Speaker 11: Magic advance to play the Celtics. The Hawks now head

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Speaker 11: home to play Friday against the winner of tonight's Miami

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Speaker 11: Chicago game. The Warriors got to combine seventy five points

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Speaker 11: from Jimmy Butler and Steph Curry one twenty one to

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Speaker 11: one sixteen over Memphis. It'll be Golden State now against Houston. Dallas.

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Speaker 11: Tonight plays Sacramento the Winter Place Friday in Memphis. Devil's

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Speaker 11: won five to four in overtime at Boston. Devil's finished

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Speaker 11: third place of the division. They'll have a first round

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Speaker 11: playoff series with Carolina. The Islanders last home game of

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Speaker 11: three to one loss to the Capitals. The Giants at

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Speaker 11: the third pick of next week's draft. They are heading

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Speaker 11: to Boulder to watch a private workout by Colorado quarterback

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Speaker 11: Shadorah Sanders, Johns Stashankler, Bloomberg.

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Speaker 7: Sports Karen Jones.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 2: And among our lead stories this morning, it involves the

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Speaker 2: tech sector, the Trump administration of posing new restrictions on

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Speaker 2: Nvidia chip exports to China. Let's get more on this

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Speaker 2: story this morning with Pretty Gupta, host of Bloomberg Radio TV,

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Speaker 2: but joining us from our London studios. Pretty good morning

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Speaker 2: to you, Thanks for being with us. In video shares

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Speaker 2: that should say, among the most actively traded this morning,

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Speaker 2: down about five point three percent now in Vidia and

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Speaker 2: even TSMC. We're pledging closer relationships with the Trump administration.

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Speaker 12: When happened, well, they're still kind of there. I mean, look,

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Speaker 12: this is coming twenty four hours after a big investment

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Speaker 12: that Nvidia had announced in the United States and specifically

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Speaker 12: in some of the southern states like Texas and Arizona,

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Speaker 12: to the tune of five hundred billion dollars. But John,

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Speaker 12: to your point, the sentiment has completely taken a different

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Speaker 12: tone now to reporting a five and a half billion

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Speaker 12: dollar hit because the US is clamping down when it

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Speaker 12: comes to the exports of some of Nvidia's chips, specifically

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Speaker 12: the Age twenty chip, which in Vidia, by the way,

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Speaker 12: has created as kind of a watered down version of

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Speaker 12: the traditional AI chip that is specifically catered to kind

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Speaker 12: of circumvent and address some of the concerns from the

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Speaker 12: US government, first under Biden, now under Trump, and still

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Speaker 12: being able to serve their Chinese clientele. But it looks

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Speaker 12: like even that is coming across some pretty severe restrictions

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Speaker 12: under the Trump administration.

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Speaker 2: Okay, so this clamping down even predates the Trump administration,

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Speaker 2: Can we say it doesn't really have anything to do

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Speaker 2: with the trade war that's taking place.

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Speaker 12: It's definitely a piece of it, it feels like it.

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Speaker 12: But remember Jensen Wong has spent quite some time at

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Speaker 12: mar Lago before even even Donald Trump was elected, and

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Speaker 12: since then, right ahead of Nvidia this announcement to kind

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Speaker 12: of make sure like a lot of the tech CEOs

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Speaker 12: are there on the winning side of this. So so that

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Speaker 12: domestic investment is very much coming in that same vein.

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Speaker 12: Remember they're also choosing not to spend that five hundred

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Speaker 12: million dollars investment in Asia, so that very much is

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Speaker 12: a reaction function to the trade war. But this is

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Speaker 12: actually one that has been happening again under the Biden administration.

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Speaker 3: This eg.

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Speaker 12: Twenty chip that Nvidia has developed is the third iteration

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Speaker 12: of a chip to circumvent government restrictions. Like I said,

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Speaker 12: not just under the Trump administration, but this entire effort

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Speaker 12: started under the Biden administration and the chip that the

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Speaker 12: Chips Act and the restrictions there.

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Speaker 2: This news we got, this came in a regulatory filing.

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Speaker 2: It's not like it was an announcement from the Trump administration.

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Speaker 12: This isn't a yes, you're one hundred percent right. This

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Speaker 12: was a regulatory filing from Nvidia. This did not come

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Speaker 12: unto the Trump administration. But in Vidia going ahead and

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Speaker 12: talking about a five hundred five excuse me, five and

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Speaker 12: a half billion dollar hit to their bottom line, we

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Speaker 12: should just mention there are reports of other from other

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Speaker 12: media that are suggesting about seventeen to eighteen billion worth

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Speaker 12: of Age twenty chips that were already developed from and video.

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Speaker 12: So the key kind of phrase that you need to

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Speaker 12: keep an eye on in this filing is inventory, purchase

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Speaker 12: commitments and related reserves because a lot of these chips

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Speaker 12: have already been produced. So it's a question of if

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Speaker 12: they don't go to China, where did they go? Given

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Speaker 12: that they are kind of this water down version.

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Speaker 2: Okay, the H twenty water down version. Again, this is

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Speaker 2: this is a chip that specifically trains AI models.

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Speaker 12: It does it specifically has to do with inference. And

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Speaker 12: so the big concern from the Biden administration and the

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Speaker 12: Trump administration has been that so much of AI is

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Speaker 12: being used not just in things like consumer electronics like iPhones,

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Speaker 12: like washing machines, but ultimately to things like military intelligence

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Speaker 12: and more sophisticated technology. Now, if the US is able

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Speaker 12: to export that critical piece or kind of help to

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Speaker 12: that military technology to the likes of China given the

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Speaker 12: geopolitical tensions, that's where their concern lies. So Nvidia's solution

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Speaker 12: to that was to create this chip that still helps

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Speaker 12: these kind of consumer electronics and helps cater to a

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Speaker 12: clientele in that safe space, but isn't as advanced to

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Speaker 12: the point that you can use them in military technology.

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Speaker 12: And that's the difference here between the AH twenty chip

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Speaker 12: relative to some of the other products Nvidia offers.

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Speaker 2: Remember, like before the trade war, one of the big

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Speaker 2: concerns for investors had been AI investments, whether these were

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Speaker 2: going to pay off in the long term, and the

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Speaker 2: capital expenditures with respect to that. That's sort of faded

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Speaker 2: to the background. Isn't that back with us as a

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Speaker 2: concern for technology?

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Speaker 12: It is a little bit of a conservative technology because remember,

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Speaker 12: not so long ago, we were also talking about this

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Speaker 12: big Deep Seek kind of crash that had happened when

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Speaker 12: it comes to the cost of innovation around AI as well.

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Speaker 12: And this is where Nvidia's kind of stuck between a

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Speaker 12: rock and a hard place because so much of that

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Speaker 12: technology and that sourcing and that physical manufacturing is happening

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Speaker 12: abroad because it's cheaper to happen abroad. On top of that,

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Speaker 12: China has already proven they're able to come up with

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Speaker 12: technology that is almost eye to eye to what's being

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Speaker 12: developed in Silicon Valley and do it at a fraction

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Speaker 12: of the cost. Now, if that continues that they are

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Speaker 12: able to kind of really pull down those costs, that's

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Speaker 12: a big deal because Nvidia developing those chips in the

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Speaker 12: United States increase increases the cost of those chips.

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