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

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, let's begin this morning with the latest from the

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Speaker 3: Milken Institute Global Conference in Beverly Hills. Financial leaders gathering

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Speaker 3: at the annual event may be warming to the idea

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Speaker 3: of tariffs, but there's a catch. As we hear from

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Speaker 3: Bloomberg's John Tucker. Good morning, John, Good.

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Speaker 4: Morning, Nathan. The industry titans say they can live with

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Speaker 4: tariffs and a reworking of trade. Just get it settled soon.

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Speaker 4: Kk ARE co founder Kenry Kravis tells Bloomberg corporate leaders

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Speaker 4: right now aren't sure what to expect.

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Speaker 5: You need certainty. Is the table going to be round,

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Speaker 5: is a table going to be squared? Whatever is, But

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Speaker 5: leave it at that and then we can operate accordingly.

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Speaker 5: The unfortunate thing it's been changing, and it constantly change.

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Speaker 4: Mark rowan CEO and co founder of Apollo Global Managements,

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Speaker 4: is the longer there's goes on, the more damage is done.

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Speaker 6: Uncertainty will eventually resolve itself longer term. The way we've

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Speaker 6: done this, we have done damage to the US.

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Speaker 4: Brand Robin Grew, CEO of Man Group, is certain of

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Speaker 4: at least one thing from the tariffs.

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Speaker 7: I think that volatility is going to be here at

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Speaker 7: some time.

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Speaker 4: The milk and elites say it would be also helpful

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Speaker 4: if the Trump administration, which has said it's deeply engaged

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Speaker 4: in talks with a slew of major trading partners, would

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Speaker 4: announce at least a few deals and give business leaders

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Speaker 4: a sense of what the future holds. Again, they want

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Speaker 4: some degree of certainty. I'm John Tucker, Bloomberg Radio.

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Speaker 3: Okay, John, thank you, and stay with Bloomberg with for

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Speaker 3: the biggest names and most important conversations. Are going to

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Speaker 3: be bringing them to you live from Milkin all day long,

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Speaker 3: broadcasting live with a special edition of Bloomberg Business Week

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Speaker 3: Daily starting at two pm Wall Street Time on Bloomberg Radio,

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

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Speaker 2: Nathan, Canada's Prime Minister, will meet with President Trump at

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Speaker 2: the White House today. It'll be the first face to

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Speaker 2: face meetings since Mark Kearney won election in part because

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Speaker 2: of his anti Trump message. Bloomberg's Amy Morris has a

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Speaker 2: preview of today's meeting in Washington.

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Speaker 8: Carney and Trump are expected to discuss trade issues and

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Speaker 8: a broader relationship between Canada and the US, but when

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Speaker 8: he was asked about the meeting, Trump told reporters in

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Speaker 8: the Oval Office, he's.

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Speaker 2: Coming to see me. I'm not sure what he wants

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Speaker 2: to see me about, but I guess he wants to.

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Speaker 9: Make a deal.

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Speaker 10: Everybody does, because we have something that they all want.

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Speaker 8: The meeting comes after a trade war between the two countries,

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Speaker 8: the US placing tariffs on Canadian products, Canada retaliating with

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Speaker 8: its own tariffs on US goods. Carney has promised to

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Speaker 8: protect Canadian sovereignty and strengthen trading relationships in Europe and Asia,

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Speaker 8: saying that the old economic and security relationship with the

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Speaker 8: US is quote over in Washington, I'm Amy Moore, as

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Speaker 8: Bloomberg Radio.

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Speaker 3: Amy, thank you. The Trump administration is now offering an

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Speaker 3: incentive in its effort to ramp up mass deportations. The

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Speaker 3: Department of Homeland Securities offering one thousand dollars plus travel

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Speaker 3: costs to undocumented migrants who leave the US voluntarily using

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Speaker 3: the CBP home app. This follows an ad campaign that

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Speaker 3: began earlier this year featuring Homeland Security Secretary Christy Nome.

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Speaker 8: Let me be clear, if you come to our country

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Speaker 8: and you break our laws, we will hunt you down.

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Speaker 8: Criminals are not welcome in the United States.

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Speaker 3: DHS says the payouts will cut deportation costs by about

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Speaker 3: seventy percent. The agency says the current process of arrests, detentions,

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Speaker 3: and removals costs about seventeen thousand dollars per person. Under

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Speaker 3: former President Joe Biden, the CBP Home app was used

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Speaker 3: to schedule asylum interviews Nathan.

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Speaker 2: The Trump administration is ramping up its fight with Harvard University.

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Speaker 2: The Ivy League institution has been declared ineligible for new

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Speaker 2: federal research grants. According to a letter from Education Secretary

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Speaker 2: Linda McMahon. The move will remain in effect for Harvard

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Speaker 2: until quote they demonstrate responsible management. Pershing Square founder and

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Speaker 2: Harvard alum Bill Ackman has been critical of his alma

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Speaker 2: mater and its chair, Penny Pritsker.

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Speaker 10: At some point, you have to account a bil for

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Speaker 10: what's gone on at Harvard, and I've not seen any

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Speaker 10: accountability at the governance level. The notion that she's still

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Speaker 10: sharing the Harvard board and leading the charge here, I

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Speaker 10: think is a big negative billionaire.

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Speaker 2: Bill Ackman spoke to Bloomberg from the milk In conference

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Speaker 2: in Beverly Hills. A Harvard spokesman says McMahon's letter amounts

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Speaker 2: to retaliation for the university's lawsuit against the administration over

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Speaker 2: more than two billion dollars in frozen research funds and Karin.

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Speaker 3: The Trump administration is looking to thin the ranks at

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Speaker 3: the highest levels of the military. Defense Secretary Pete Hegseth

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Speaker 3: is ordering a twenty percent reduction to four star general

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Speaker 3: and admiral positions, another twenty percent cut to officers in

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Speaker 3: the National Guard, and at least ten percent cuts to

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Speaker 3: all generals and admirals. Heg Seth called it the less generals,

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Speaker 3: more gis policy in a social media post.

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Speaker 9: Now, this is not a slash and burn exercise meant

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Speaker 9: to punish high ranking officers. Nothing could be further from

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Speaker 9: the truth. This has been a deliberative process, working with

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Speaker 9: the Joint chiefs of Staff with one goal maximizing strategic

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Speaker 9: readiness and operational effectiveness by making prudent reductions in the

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Speaker 9: general and flag officer ranks.

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Speaker 3: Defense Secretary Pete haig Seth's reductions could be challenged in Congress.

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Speaker 3: Lawmakers have to approve any changes to military command Nathan.

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Speaker 2: In Europe, Frederick Mertz has suffered a setback and has

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Speaker 2: been to become the next German chancellor. The Conservative leader

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Speaker 2: fell short of a majority in an initial vote in

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Speaker 2: the lower house of Parliament. The failure to secure a

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Speaker 2: majority and what was expected to be a rubber stamp vote,

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Speaker 2: delays his swearing in as head of government. Bloomberg's Oliver

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Speaker 2: Crook is in Berlin and says it's an embarrassing setback

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Speaker 2: for the Conservative leader.

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Speaker 6: This was supposed to be kind of a rubber staff

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Speaker 6: day where Frederick Bard's, a CDU leader, was going to

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Speaker 6: be ushered in as the next Chancellor of Germany. It

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Speaker 6: is now encountered a stumbling block at the very first

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Speaker 6: step of this process. Frankly, right now, I think everyone

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Speaker 6: is scrambling to figure out exactly why that was the case.

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Speaker 2: Bloomer's Oliver Crook says it's the first time since World

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Speaker 2: War Two that an incoming chancellor failed to get parliamentary

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Speaker 2: backing the first round of voting and breaking across the

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Speaker 2: Bloomberg moments ago. German leaders will not vote again today

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Speaker 2: on Mertzus Chancellor.

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Speaker 3: Turning back to markets now. Karen futures are lower a

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Speaker 3: day after the S and P five hundred saw its

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Speaker 3: nine day winning streak snapped. Best performing stock in the

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Speaker 3: index so far this year, is helping to lead the

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Speaker 3: losses this morning's shares of Palenteer down nearly eight percent.

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Speaker 3: The company did raise its revenue forecast for the full

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Speaker 3: year on strong demand for its artificial intelligence software products.

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Speaker 3: Palenteer's growth was strong in the US, but tepit enthusiasm

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Speaker 3: in the rest of the world, which constitutes less than

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Speaker 3: a third of Palenteer's business, was enough to concern some analysts.

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Speaker 2: Shares a Forarder down two point six percent. Nathan the

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Speaker 2: automaker is spending its full year financial guidance. Ford says

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Speaker 2: President Trump's auto tariffs are reduced twenty twenty five adjusted

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Speaker 2: earnings before interest in taxes by about one and a

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Speaker 2: half billion dollars on a net basis this year. CEO

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Speaker 2: Jim Farley spoke on the earnings call.

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Speaker 11: It's still too early to fully understand or competitors' responses

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Speaker 11: to these tariffs. It's also early to gauge the related

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Speaker 11: market dynamics, including the potential industry wide supply chain disruptions

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Speaker 11: and the impact of Ford's domestic manufacturing advantages, and as

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Speaker 11: a result, we decided to suspend our guidance and.

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Speaker 2: For CEO Jim Farley's as the company's total tariff impact

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Speaker 2: is about two and a half billion dollars, one billion

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Speaker 2: of which is expected to be offset through actions such

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Speaker 2: as using bonded transportation to shield parts from levies.

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Speaker 3: Hey, Karen, We've got some deal news this morning. This

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Speaker 3: one's official door Dash has agreed to buy UK based

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Speaker 3: food delivery platform Delivery for a price tag of three

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Speaker 3: point nine billion dollars. DoorDash controls two thirds of the

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Speaker 3: restaurant delivery market in the US. It says this acquisition

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Speaker 3: will expand that reach to more than forty countries.

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Speaker 2: And it's time now for look at some of the

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Speaker 2: other stories making news in New York and around the world.

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Speaker 2: And for that we're joined by Bloombers Michael Barr. Michael,

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Speaker 2: good morning, Good morning, Karen.

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Speaker 12: The nation's aviation problems are the center of concern following

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Speaker 12: the troubles at Newark Airport following a radar system fail

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Speaker 12: to your last week. Newark's air traffic controllers are refusing

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Speaker 12: to come into work, calling it a traumatic event, a

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Speaker 12: contract clause to call out. The screens went black for

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Speaker 12: about ninety seconds three forty three.

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Speaker 13: I'm going to move you here because I just got

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Speaker 13: told it to approach loss all the radars. Three of

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Speaker 13: the four radar screens went block, and they have twenty

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Speaker 13: three forty three whoeveryone else is on frequency. I guess

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Speaker 13: this is a serious issue because I have one more

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Speaker 13: arrival and now I have nobody.

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Speaker 14: Else coming in back, Senator Chuck Schumer, we have ATC

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Speaker 14: folks giving warnings. We have a nineteen ninety technology being

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Speaker 14: used in twenty twenty five, and we have safety issues,

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Speaker 14: plain and simple.

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Speaker 12: The Union has been trying to bring attention for years

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Speaker 12: of dealing with staff shortages and out of date technology.

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Speaker 12: The track and racketeering trial of rap mogul Sean Diddy

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Speaker 12: Coombs began in New York City with a jury selection.

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Speaker 12: Jurors are filling out written questionnaires stating there may be

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Speaker 12: graphic and sexually explicit evidence in connection with the case.

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Speaker 12: Out today. US News and World reports Best States rankings

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Speaker 12: for twenty twenty five. The list looks at dozens of

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Speaker 12: metrics across categories like education led by New Jersey and

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Speaker 12: healthcare led by Hawaii, while overall Utah takes the lead

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Speaker 12: for the third year in a row. Senior Data editor

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Speaker 12: Jacqueline Jeffrey Wollnski, the.

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Speaker 15: First is Utah, the second is New Hampshire, the third

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Speaker 15: is Idaho, and then rounding out that top five, we've

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Speaker 15: got Minnesota and Nebraska, so a lot of Midwest representation.

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Speaker 12: Massachusetts ranked ninth, Connecticut fifteenth, New Jersey nineteenth, New York

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Speaker 12: ranked twenty second. Global News twenty four hours a day

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Speaker 12: and whenever you want it with Bloomberg News Now Michael Barr,

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Speaker 12: and this is Bloomberg Karen.

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Speaker 2: All right, Michael Barr, thank you time now for the

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Speaker 2: Bloomberg Sports Update. Here's John Stashower. John, good morning, Good.

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Speaker 16: Morning, Karon. The Knicks keep pulling out playoff games on

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Speaker 16: the road, three times in Detroit. In Game one in

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Speaker 16: Boston against the defending NBA champs, who the Knicks couldn't

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Speaker 16: beat in the regular season, they trailed by twenty in

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Speaker 16: the third quarter, but some more Jalen Brunson heroics in

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Speaker 16: the fourth. He made three three pointers in a two

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Speaker 16: and a half and it stretched, though Brunson missed an

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Speaker 16: easier shot that would have won the game in regulation.

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Speaker 16: It then went to overtime. Holiday is all over punching,

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Speaker 16: poor fit to watch hard two and a half.

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Speaker 13: In overtime, it goes to.

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Speaker 12: An Andobi tatamisl in the corner Pinchers times it's a

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Speaker 12: six point New York cleaning over.

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Speaker 16: Time dn Ta to call. Nick stunned the Celtics one

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Speaker 16: O eight one oh five runs and scored twenty nine points.

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Speaker 16: So did o g Onanobi. The Celtics took sixty three pointers,

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Speaker 16: made only fifteen of them. Game twos tomorrow, that's also

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Speaker 16: come back and an upset at Oklahoma City. Denver won

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Speaker 16: Game one one twenty one one nineteen on an Aaron

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Speaker 16: Gordon three with two seconds left for Narkolo. Jok had

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Speaker 16: forty two points twenty two rebounds. Stanley Cup ploffs in Toronto,

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Speaker 16: maple Lea's one game one with Florida five to four.

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Speaker 16: The Islanders won the draft lottery despite having just a

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Speaker 16: three and a half percent chance at stadium. The Padres

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Speaker 16: won their six in a row, beat the Yankees four

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Speaker 16: to three, story in all four in the eighth Inny

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Speaker 16: of Arizona, two run homer for Pete Alonzo, three runs

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Speaker 16: shot for Francisco Lindor Mets won five to four. The

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Speaker 16: Baltimore Ravens released Justin Tucker, the most accurate kicker in

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Speaker 16: NFL history, but he missed ten kicks last season and

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Speaker 16: accused by sixteen women of inappropriate behavior. Johns Stashewer, Bloomberg

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Speaker 16: Sports Karen Nathan.

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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 16: Good morning.

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Speaker 3: I'm Nathan Hager, turning to a conversation with City CEO

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Speaker 3: Jane Fraser, speaking with Bloomberg Shanali Bassic from the Milk

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Speaker 3: Institute Global Conference in Beverly Hills. They talked about the economy,

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Speaker 3: the FED, the outlook for small to mid sized businesses.

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Speaker 3: Let's listen in.

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Speaker 17: We're in a world where the difference between the hard

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Speaker 17: data and the soft data is the greatest I've ever seen,

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Speaker 17: and it's very hard for all of us to understand

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Speaker 17: to get our arms around this and what does it mean?

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Speaker 17: And I think we just got to recognize that this

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Speaker 17: will take some time to play out. On the one hand,

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Speaker 17: we've got investors who had quite the round trip in

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Speaker 17: the last few weeks. But when we look at our

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Speaker 17: corporate clients or our consumer clients, sentiment is weaker, but

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Speaker 17: spending is strong. With the consumer still it's holding up.

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Speaker 17: Some of that is the pull forward of spending the

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Speaker 17: same from corporates ahead of tariffs. But we're keeping a

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Speaker 17: very close eye on what will happen with unemployment, what's

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Speaker 17: going to happen with inflation. Obviously, what's going to happen

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Speaker 17: with the actual tariffs will be the ten percent, will

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Speaker 17: they be twenty five percent, will they be more? That

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Speaker 17: uncertainty will get clarified. We will know more, We'll know

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Speaker 17: more about the tax field, we'll know more about deregulation.

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Speaker 17: If it's going to take some time for the heart

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Speaker 17: and soft data to converge, and that we know which

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Speaker 17: scenario we should be acting upon.

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Speaker 7: Well, to that end, you said earlier that a lot

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Speaker 7: of your clients are in this weight and see more so,

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Speaker 7: what is your advice bring us into the board rooms?

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Speaker 7: What are they waiting to see and what is your message.

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Speaker 17: So with clients as a couple of things that are

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Speaker 17: going on. One more tac degree, which is preparing for headwinds.

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Speaker 17: And remember we're serving multinational clients and multinational institutions and

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Speaker 17: governments around the world, so they are strengthening balance sheets.

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Speaker 17: If they feel the need to take advantage of that,

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Speaker 17: they're pulling forward inventry. They're causing some of their investments

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Speaker 17: spend cathechs. There's still activity, but there's definitely the weight

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Speaker 17: and see and preparate show. Then you have all the

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Speaker 17: work that is going on where we're having heavy client

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Speaker 17: engagement on how should I be rethinking about my supply chains,

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Speaker 17: what should I be thinking about my hedging and financing?

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Speaker 17: And then on the top level, what does it mean

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Speaker 17: from the strategic advice. So the level of engagement everywhere

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Speaker 17: around the world is absolutely tremendous. It's about scenarios right now,

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Speaker 17: it will turn into action further down the year.

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Speaker 7: What kind of risk is there to mainstream if these

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Speaker 7: trade negotiations aren't sorted out?

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Speaker 17: Dast I think it's not just the trade. We want

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Speaker 17: to see the trade. We want to see the tax

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Speaker 17: bill and what that will be. And then also deregulation

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Speaker 17: because as secondary Vestent has pointed out deregulation has really

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Speaker 17: impeded main street as well. We've seen it as above three.

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Speaker 17: The concern as a large bank was around what does

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Speaker 17: it mean for the consumer? What did it mean for farmers?

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Speaker 17: What do it mean for small businesses? Because they have

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Speaker 17: rode a trickle down impact of too much regulation. So

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Speaker 17: some of that undoing of things that have been overdone

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Speaker 17: is very important for mainstream because they don't have the

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Speaker 17: same flexibility and diversity a business model that the larger corporates.

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Speaker 7: Do, but don't they have neuro term problems like inflation

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Speaker 7: that would be on the eels of a lot of

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Speaker 7: these tariff talks, and access to capital being different than

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Speaker 7: those larger firms have.

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Speaker 17: As I talked about, I do think the small businesses

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Speaker 17: and those involved in sectors affected by the PRIC increases,

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Speaker 17: by the terriffs, by supply chain disruptions, just because the

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Speaker 17: magnitude of changes that could be coming will have an

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Speaker 17: impact on them, and that's I think where some of

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Speaker 17: the disruption and the pain from this will be felt. First,

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Speaker 17: do you agree.

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Speaker 7: With President Trump that the FED should cut into strates

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Speaker 7: or do you believe that it would be imported to

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Speaker 7: do it at this time when inflation expectations are higher.

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Speaker 17: It's very hard for the FED right now because of

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Speaker 17: this disconnect between hard data and soft data, and the

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Speaker 17: hard data holding up well, the sentiment data is clearly impacted,

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Speaker 17: and until there is more clarity, it will be hard

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Speaker 17: to know. If it's a ten percent tariff easier to absorb.

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Speaker 17: If it's twenty five percent or higher, then that will

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Speaker 17: have more material ramifications. So getting clarity on the trade

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Speaker 17: deals and agreements that will come through, we'll know more

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Speaker 17: about taxes. In the summer. We're starting to see some

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Speaker 17: of the benefits of deregulation occurring. All of this will

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Speaker 17: play in, but right now the Fed's in a tough spot.

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