WEBVTT - Trump's Next Steps with China Trade War; Canada Election Day

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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. Karen, we begin with the latest

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<v Speaker 3>on the trade war.

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<v Speaker 2>President Trump is closing in on the one hundred day

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<v Speaker 2>mark of his second term and he's still looking to

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<v Speaker 2>make deals. The President says his one hundred and forty

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<v Speaker 2>five percent tariffs on China will force Beijing to the

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<v Speaker 2>negotiating table.

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<v Speaker 4>We were losing hundreds of billions of dollars a year

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<v Speaker 4>with China, and now they're not doing any business with us,

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<v Speaker 4>you know, because not because of that, because of me,

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<v Speaker 4>Because at.

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<v Speaker 5>One hundred and forty five percent, you can't do business.

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<v Speaker 5>But something's gonna happen. That's gonna be possible now.

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<v Speaker 2>The presidents spoke with reporters on his way back to

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<v Speaker 2>the White House from New Jersey this morning. China's Foreign

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<v Speaker 2>ministry reiterated that it is not engaged in trade talks

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<v Speaker 2>with the US. China's promising more support for its exporters,

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<v Speaker 2>including plans to direct loans to troubled firms and to

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<v Speaker 2>boost domestic consumption.

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<v Speaker 3>Well, Nathan, the Trump administration is signaling that Asian countries

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<v Speaker 3>such as South Korea, Japan, and India are leading the

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<v Speaker 3>way in tariff negotiations. Treasury Secretary's gone Vesson says some

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<v Speaker 3>nations are prepared to make significant concessions to secure a deal.

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<v Speaker 6>We've had several of these Asian countries that come in

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<v Speaker 6>and said, oh, well, we'll stop doing this, this and this.

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<v Speaker 6>And I look at these lists and I think, how

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<v Speaker 6>did we get here? How do we get here? Because

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<v Speaker 6>this trading system has been so unfair. And as President

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<v Speaker 6>Trump says, I don't blame the countries, I blame the

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<v Speaker 6>previous administrations. Let them get away with it.

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<v Speaker 3>And Treasury Secretary's gone Besson tells ABC's This Week that

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<v Speaker 3>there are eighteen important trading partners, including China, which he

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<v Speaker 3>says is undergoing a special negotiation. And you can hear

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<v Speaker 3>this week every Sunday on Bloomberg Radio.

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<v Speaker 2>Well, we may soon start to feel the impact of

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<v Speaker 2>the trade war, Karen Cargo shipments from China to the

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<v Speaker 2>US if plummeted by as much as sixty percent since

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<v Speaker 2>the US raised tariffs earlier this month. By the middle

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<v Speaker 2>of May, thousands of companies will need to replenish inventories.

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<v Speaker 2>Both Walmart and Target told the president last week that

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<v Speaker 2>shoppers are likely to see empty shelves and higher prices

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<v Speaker 2>and appoon The Global Management Chief economist Torsten Slock recently

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<v Speaker 2>warned of looming COVID like shortages and significant layoffs Well Nathan.

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<v Speaker 3>In a post on Truth's Social over the weekend, President

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<v Speaker 3>Trump suggested that tariffs would help him reduce income taxes

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<v Speaker 3>for people making less than two hundred thousand dollars a year.

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<v Speaker 3>Trump has previously argued that tariff revenue could replace income taxes,

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<v Speaker 3>though economists have questioned those claims.

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<v Speaker 2>And Karen is the president approaches that one hundredth day

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<v Speaker 2>back in office, his popularity appears to be declining. We

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<v Speaker 2>get that story from Bloomberg's Gena Cervetti.

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<v Speaker 7>A flory of polls in recent days from NBC, CNN,

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<v Speaker 7>The New York Times, ABC News, and Fox News revealed

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<v Speaker 7>the same theme. Voters perceived Trump to be falling short

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<v Speaker 7>on his core campaign promise to strengthen the economy. The

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<v Speaker 7>president's rule up out of tariffs in early April cent

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<v Speaker 7>global markets into shock. A CNN poll shows that just

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<v Speaker 7>thirty nine percent of Americans approve of how Trump has

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<v Speaker 7>steered the economy. That's the lowest of his two terms

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<v Speaker 7>in the White House. An NBC News polls showed tariffs

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<v Speaker 7>were also deeply unpopular, with just thirty nine percent of

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<v Speaker 7>respondents agreeing with Trump's tariff rollout. Trump wrote the twin

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<v Speaker 7>issues of the economy and immigration to his November election victory,

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<v Speaker 7>sweeping each of the swing states and winning the popular vote.

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<v Speaker 7>Ginas Cervetti Bloomberg Radio.

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<v Speaker 3>All right, Gina, thank you now to the latest on

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<v Speaker 3>the war in Ukraine. North Korea is acknowledging for the

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<v Speaker 3>first time that had sent troops to the front lines.

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<v Speaker 3>The official Korean Central News Agency reports North Korean forces

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<v Speaker 3>helped regain control of Russia's Kursk border region. President Trump

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<v Speaker 3>says he's hopeful that he's closer to a peace deal

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<v Speaker 3>after meeting at the Vatican this weekend with the Ukrainian

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<v Speaker 3>president Vladimir Zelenski.

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<v Speaker 8>He told me that he needs more weapons, but he's

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<v Speaker 8>been saying that for three years. Yeah, he these more weapons,

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<v Speaker 8>and we're going to see what happens. I want to

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<v Speaker 8>see what happens with the respect to Russia, because Russia,

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<v Speaker 8>I've been surprised and disappointed, very disappointed that they did.

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<v Speaker 9>The bombing of those places after discussion, and President Trump

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<v Speaker 9>has floated the idea of secondary sanctions on Russia for

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<v Speaker 9>firing into civilian areas in recent days.

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<v Speaker 2>Karen, let's look north of the border this morning, because

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<v Speaker 2>Canadians are headed to the polls to vote for their

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<v Speaker 2>next prime minister. We get that story from Bloomberg's David

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<v Speaker 2>Gura in Ottawa. Prime Minister Mark Carney, the leader of

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<v Speaker 2>Canada's Liberal Party, called this election in March, shortly after

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<v Speaker 2>he succeeded Justin Trudeau. Carney's main rival is Pierre Poliev,

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<v Speaker 2>the leader of the Conservatives. For Canadians, this is a

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<v Speaker 2>referendum on their economic future. The country faces high inflation,

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<v Speaker 2>a housing crisis, and concerns over job security. But what's

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<v Speaker 2>front and center are President Donald Trump's aggressive trade policies,

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<v Speaker 2>particularly new tariffs, and comments he's made suggesting Canada should

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<v Speaker 2>become part of the United States. The outcome of the

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<v Speaker 2>election will determine how the country addresses these challenges and

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<v Speaker 2>how it positions itself on the world stage. In Ottawa,

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<v Speaker 2>I'm David Gura, Bloomberg Radio.

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<v Speaker 3>All right, David, thank you well. Turning to the markets,

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<v Speaker 3>futures are lower as who begin to do trading week.

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<v Speaker 3>The S and P five hundred down about eight percent

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<v Speaker 3>since Trump's inauguration, and it's on track for its worst

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<v Speaker 3>run during a president's first one hundred days since Gerald

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<v Speaker 3>Ford in nineteen seventy four. Bob Michael as chief Investment

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<v Speaker 3>Officer of fixed Income at JP Morgan Asset Management, and

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<v Speaker 3>he says Wall Street is bracing for more uncertainty.

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<v Speaker 10>The bond market's telling us watch out as things stand.

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<v Speaker 10>If the tariffs go through as they're currently speked out,

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<v Speaker 10>the ninety days passes and there's only some moderate compromise,

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<v Speaker 10>the US is going into recession.

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<v Speaker 3>JP Morgan Asset Management's Bob Michael. Earnings will also be

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<v Speaker 3>in focus this week for the so called Magnificent Seven. Microsoft, Apple, Meta,

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<v Speaker 3>and Amazon are scheduled to report.

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<v Speaker 2>And we have some deal news on this Monday morning.

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<v Speaker 2>Karen Germany's Merk is buying Stamford, Connecticut based spring Works

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<v Speaker 2>Therapeutics for three point nine billion dollars. Spring Works makes

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<v Speaker 2>medicines for cancer and rare diseases.

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<v Speaker 3>It's time now for a look at some of the

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<v Speaker 3>other 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 11>Good Morning, Karen. Murder charges have been filed against a

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<v Speaker 11>suspect in a weekend car ramming attack that killed eleven

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<v Speaker 11>people at a Filipino heritage festival in Vancouver. Hundreds attended

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<v Speaker 11>vigils Sunday across the city for the victims, and the

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<v Speaker 11>Canadian Prime Minister visited the site. Prosecutors have charged a

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<v Speaker 11>thirty year old man. Investigators have ruled out terrorism and

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<v Speaker 11>say he has a history of mental health issues. Mayor

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<v Speaker 11>Ken sim.

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<v Speaker 12>He is known to please for a multitude of mental

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<v Speaker 12>health interactions. Now it would appear that mental health appears

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<v Speaker 12>to be the underlying issue here.

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<v Speaker 11>Those killed were between the ages of five and sixty five.

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<v Speaker 11>Canada's Prime Minister Mark Kearney says all of Canada is

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<v Speaker 11>in mourning over the attack.

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<v Speaker 12>Families lost a sister or brother, a mother, a father, a.

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<v Speaker 6>Son or a daughter.

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<v Speaker 12>Those families are living every family's nightmare.

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<v Speaker 11>Dozens were also injured when the man drove and suv

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<v Speaker 11>struck people attending the Lampoo Lapool Day festival on Saturday.

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<v Speaker 11>We're learning a four year old and a seven year

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<v Speaker 11>old with the US citizenship were deported alongside their undocumented

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<v Speaker 11>mother to Honduras last week. It comes during the Trump

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<v Speaker 11>administration's immigration crackdown. The family's lawyer said the mother was

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<v Speaker 11>given no choice but to take your children. However, Trump

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<v Speaker 11>borders are Tom Holman denies.

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<v Speaker 13>That the children aren't deported. The mother chilse to take

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<v Speaker 13>the children with her. When you're at their country legally,

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<v Speaker 13>and you know you're here illegally, and you choose have

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<v Speaker 13>you assistant child, that's on you. That's not on this administration.

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<v Speaker 13>If you choose to put your family that position, that's

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<v Speaker 13>on them.

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<v Speaker 11>Tom Homan spoke on CBS Has Faced the Nation heard

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<v Speaker 11>Sundays on Bloomberg. Authorities say more than one hundred immigrants

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<v Speaker 11>suspected of being in the US illegally were taken into

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<v Speaker 11>custody during an ICE raid at an illegal after hours

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<v Speaker 11>nightclub in Colorado Springs, Colorado. Video posted online by the

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<v Speaker 11>Drug Enforcement Administration showed agents announcing their presence outside the

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<v Speaker 11>building early Sunday. The DEA says the club has been

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<v Speaker 11>under investigation for several months for alleged activities, including drug trafficking,

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<v Speaker 11>prostitution and crimes of violence, Global news twenty four hours

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<v Speaker 11>a day and whenever you want it with the Bloomberg News. Now,

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<v Speaker 11>I'm Michae Labarn. This is Bloomberg 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. Here's John stash Hour, John, good morning,

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<v Speaker 3>Good morning.

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<v Speaker 14>Care another wild Nick's Pistons playoff game of Detroit Game four.

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<v Speaker 14>So the nexs GOO from up sixteen late in the

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<v Speaker 14>second quarter to down eleven early in the fourth. Jalen

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<v Speaker 14>Brunson then return from a recurrence of his ankle injury

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<v Speaker 14>to bring the Knicks back they trailed by two. In

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<v Speaker 14>the final minute, Brunt sick one.

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<v Speaker 5>On one again, shrewder left of the lake, tipots into

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<v Speaker 5>the lake, send to Tannanobia in the New York corner.

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<v Speaker 2>Shot bag triples sends it up top for towns. Shot

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<v Speaker 2>bag one triple step back de threes to.

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<v Speaker 5>Believe He's good.

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<v Speaker 8>New York ninety four Detroit ninety three Timeout Pistons with

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<v Speaker 8>forty six point six to.

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<v Speaker 5>Play ESPN Radio Colo on.

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<v Speaker 14>The Pistons missed two shots on their final possession. The Knicks,

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<v Speaker 14>who won Game three by two points, won Game four

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<v Speaker 14>by one. Brunson scored thirty two. He had thirteen after

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<v Speaker 14>his return from the injury. Karl Anthony Towns twenty seven points.

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<v Speaker 14>That three pointer was his fifth cade. Cunning Dam again

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<v Speaker 14>led Detroit, and he had twenty five in a triple double.

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<v Speaker 14>It's three to one. Nicks Game five tomorrow with the

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<v Speaker 14>Guard and the Celtics are up three to one. They

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<v Speaker 14>got thirty seven from Jason Tatum and won one oh

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<v Speaker 14>seven ninety eight at Orlando, Indiana with an easy win

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<v Speaker 14>at Milwaukee for a three to one lead in Minnesota

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<v Speaker 14>is up three to one on the Lakers. The Devils

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<v Speaker 14>are down three. They lost in North to Carolina five

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<v Speaker 14>to two. Andre Spetnitchek had the hat trick for the Canes.

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<v Speaker 14>Capitals also won five to two and LP three to

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<v Speaker 14>one on Montreal. The Met's bullpen, which has been so good,

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<v Speaker 14>failed them. In Washington, Mets had a seven to one

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<v Speaker 14>lead in the seventh in a Nationals scored five and

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<v Speaker 14>the seventh two more than ninth to win eight to seven.

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<v Speaker 14>The game ended on a Pete Alonzo throwing. Their second

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<v Speaker 14>time in three days, the Nats have walked it off.

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<v Speaker 14>Series ends this afternoon at the stadium, Yankees swept too

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<v Speaker 14>from Toronto eleven to two and five to one after

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<v Speaker 14>Max Freed went to five and Oh Yanks a lot

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<v Speaker 14>on the three hits.

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<v Speaker 11>The Nightcap hit.

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<v Speaker 14>Three homers Trent Grisham leading off, and later Aaron Judge

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<v Speaker 14>and then j c Escara first homer of his career.

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<v Speaker 14>Red Sox won thirteen to three in Cleveland. John Staneshandware

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<v Speaker 14>Bloomberg Sports Karena Nathan.

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

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<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. As President Donald Trump closes

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<v Speaker 2>in on his first one hundred days back office this week,

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<v Speaker 2>he says he's got China right where he wants it

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<v Speaker 2>on trade, and the tariffs are already having the impact

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<v Speaker 2>he's looking for.

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<v Speaker 5>We're losing billions of dollars a day and now we're

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<v Speaker 5>doing great and we haven't even kicked in yet. And

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<v Speaker 5>eventually we'll be reducing taxes.

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<v Speaker 8>Very substantially for the people of our country because the money.

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<v Speaker 5>Is so great coming in from Paris.

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<v Speaker 2>And that was the President speaking with reporters in New

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<v Speaker 2>Jersey last night for the latest onwere things stand now

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<v Speaker 2>in the global trade war. We're joined by Bloomberg News

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<v Speaker 2>Senior editor Bill Ferries. Bill, good morning. The talk we're

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<v Speaker 2>hearing from the White House is that one hundred and

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<v Speaker 2>forty five percent tariffs are going to force China to

0:11:40.679 --> 0:11:41.840
<v Speaker 2>the negotiating table.

0:11:42.360 --> 0:11:44.360
<v Speaker 12>Is that what we're seeing at this point? Good morning,

0:11:45.120 --> 0:11:47.480
<v Speaker 12>Good morning, Nathan, Thanks for having me. I think that

0:11:47.640 --> 0:11:50.559
<v Speaker 12>is still very much an argument or a theory that's

0:11:50.640 --> 0:11:53.920
<v Speaker 12>up in the air both sides in this trade war,

0:11:54.040 --> 0:11:57.480
<v Speaker 12>kind of refusing to blink. So far, there have been

0:11:57.520 --> 0:12:00.360
<v Speaker 12>some exceptions to those high tariffs on the US side,

0:12:00.679 --> 0:12:04.480
<v Speaker 12>but by and large they're in place and seeing as

0:12:04.520 --> 0:12:07.240
<v Speaker 12>starting to have a big impact on trade. When you

0:12:07.280 --> 0:12:11.840
<v Speaker 12>look at the number of cargo container ships coming from China,

0:12:11.920 --> 0:12:14.840
<v Speaker 12>we know those numbers are down. We know that the

0:12:14.880 --> 0:12:18.720
<v Speaker 12>heads of companies like Walmart and Target and Home Depot

0:12:18.760 --> 0:12:23.640
<v Speaker 12>were at the White House last week arguing arguing for

0:12:24.320 --> 0:12:27.240
<v Speaker 12>this period of high terriffs to be short. I think

0:12:27.280 --> 0:12:30.760
<v Speaker 12>we're still waiting to see in the big economic indicators

0:12:31.080 --> 0:12:34.360
<v Speaker 12>how serious of a hit this will be for either

0:12:34.360 --> 0:12:37.439
<v Speaker 12>economy China or the US. But I think analysts say

0:12:37.440 --> 0:12:40.480
<v Speaker 12>it's that impact is going to be made clear very soon.

0:12:40.679 --> 0:12:42.920
<v Speaker 2>But apart from the hard data, I mean, you mentioned

0:12:43.240 --> 0:12:46.840
<v Speaker 2>some of the cargo shipments being reduced already, and we're

0:12:46.840 --> 0:12:50.120
<v Speaker 2>already starting to see some of the major companies that

0:12:50.160 --> 0:12:54.079
<v Speaker 2>are consumer facing in China appearing to be passing along

0:12:54.240 --> 0:12:57.920
<v Speaker 2>a lot of these higher import taxes directly to consumers.

0:12:57.960 --> 0:13:00.560
<v Speaker 12>Now that's right. I mean we're talking about some of

0:13:00.559 --> 0:13:04.760
<v Speaker 12>those fast fashion companies like Chian and Temu. They are

0:13:04.800 --> 0:13:08.640
<v Speaker 12>already marking up their prices for deliveries to the US

0:13:08.760 --> 0:13:12.480
<v Speaker 12>by in some cases more than two hundred percent. So

0:13:12.679 --> 0:13:15.040
<v Speaker 12>that's something that you know, people will have to think

0:13:15.040 --> 0:13:18.120
<v Speaker 12>about when they're doing some of their online orders and

0:13:18.280 --> 0:13:20.160
<v Speaker 12>have to think about whether that's you know, they can

0:13:20.240 --> 0:13:23.520
<v Speaker 12>replace that with either products here in the US or

0:13:23.640 --> 0:13:27.959
<v Speaker 12>products somewhere else online. But retailers are starting to feel

0:13:28.000 --> 0:13:30.920
<v Speaker 12>the pinch of the tariffs and starting to pass those

0:13:30.960 --> 0:13:34.679
<v Speaker 12>costs along. I think, is this builds up, particularly if

0:13:34.720 --> 0:13:37.480
<v Speaker 12>there are fewer cargo ships coming into the US, you're

0:13:37.520 --> 0:13:39.840
<v Speaker 12>going to have to You're going to see retailers running

0:13:39.840 --> 0:13:42.559
<v Speaker 12>out of some of the inventory that got built up

0:13:42.840 --> 0:13:46.120
<v Speaker 12>ahead of those tariffs ahead of Liberation Day on April second,

0:13:46.360 --> 0:13:48.120
<v Speaker 12>and that's going to start having an impact in the

0:13:48.160 --> 0:13:48.960
<v Speaker 12>economy as well.

0:13:49.080 --> 0:13:52.080
<v Speaker 2>And there's this idea as well, particularly floated by the

0:13:52.080 --> 0:13:56.400
<v Speaker 2>Treasury Secretary, that if the US starts to get more

0:13:56.480 --> 0:14:00.280
<v Speaker 2>trade deals with some of these Asian trading partners like

0:14:00.320 --> 0:14:03.560
<v Speaker 2>South Korea and Japan, that could put more pressure on

0:14:03.679 --> 0:14:06.000
<v Speaker 2>China to come to the table as well. Are we

0:14:06.000 --> 0:14:07.880
<v Speaker 2>starting to see evidence that that's happening.

0:14:08.800 --> 0:14:12.360
<v Speaker 12>Well, we've seen, actually we've seen some pushback from Japan

0:14:12.520 --> 0:14:16.520
<v Speaker 12>so far on trying to put restrictions on their trade

0:14:16.559 --> 0:14:19.800
<v Speaker 12>with China. I suspect that's a position a lot of

0:14:20.000 --> 0:14:24.400
<v Speaker 12>Southeast Asian nations in particular will have. Usually, the US

0:14:24.440 --> 0:14:27.040
<v Speaker 12>and China are the two biggest trading partners for most

0:14:27.120 --> 0:14:30.400
<v Speaker 12>countries in Asia, so it's going to be they don't

0:14:30.400 --> 0:14:32.760
<v Speaker 12>want to do without either one. But there's gonna be

0:14:32.840 --> 0:14:36.000
<v Speaker 12>a lot of scrutiny of that first or first two

0:14:36.160 --> 0:14:39.640
<v Speaker 12>trade deals that come through. We know Japan is supposedly

0:14:40.160 --> 0:14:42.760
<v Speaker 12>near the top of the list India as well, there's

0:14:42.760 --> 0:14:45.480
<v Speaker 12>gonna be a lot of scrutiny about whether whatever they

0:14:45.520 --> 0:14:48.400
<v Speaker 12>agree to is really a framework that a lot of

0:14:48.400 --> 0:14:52.400
<v Speaker 12>countries can follow, or if it's going to be very

0:14:52.520 --> 0:14:55.840
<v Speaker 12>much ad hoc and particular to each country. I think

0:14:55.880 --> 0:14:57.640
<v Speaker 12>one big issue so far as there's just been a

0:14:57.720 --> 0:15:00.720
<v Speaker 12>lot of confusion in terms of what country need to

0:15:00.800 --> 0:15:04.320
<v Speaker 12>do to try to keep that ninety day reprieve as

0:15:04.320 --> 0:15:07.640
<v Speaker 12>a more permanent feature of the new world of tariffs now.

0:15:07.680 --> 0:15:09.640
<v Speaker 2>I guess there's an open question as well as to

0:15:09.680 --> 0:15:12.680
<v Speaker 2>whether investors are going to take a framework for an

0:15:12.720 --> 0:15:17.040
<v Speaker 2>agreement as enough as opposed to a broader trade deal

0:15:17.040 --> 0:15:19.960
<v Speaker 2>when the Treasury Secretary has said something like a deal

0:15:20.000 --> 0:15:22.560
<v Speaker 2>with China could take two to three years in our

0:15:22.640 --> 0:15:26.800
<v Speaker 2>last thirty seconds bill. The market reaction to this trade

0:15:26.800 --> 0:15:29.240
<v Speaker 2>war has been very tough on the president in the

0:15:29.240 --> 0:15:30.160
<v Speaker 2>first one hundred days.

0:15:30.640 --> 0:15:33.840
<v Speaker 12>Yeah, we one hundred days in the SNP is looking

0:15:33.960 --> 0:15:37.440
<v Speaker 12>like it's down about eight percent since Donald Trump's inauguration.

0:15:37.840 --> 0:15:40.320
<v Speaker 12>That would be it's on track for its worst run

0:15:40.600 --> 0:15:42.840
<v Speaker 12>in the first one hundred days of a new administration

0:15:42.960 --> 0:15:47.000
<v Speaker 12>since Gerald Ford in nineteen seventy four following Nixon's resignation.

0:15:47.240 --> 0:15:50.080
<v Speaker 12>So that is not what people expected, I think when

0:15:50.080 --> 0:15:51.960
<v Speaker 12>Trump took off, as they thought there'd be more of

0:15:52.040 --> 0:15:54.880
<v Speaker 12>a stock market boom. We're still waiting to see that happen.

0:15:55.200 --> 0:15:58.640
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