WEBVTT - China Slaps Further Tariffs on US; Deadly NYC Helicopter Crash

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

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<v Speaker 2>Good morning, I'm Lisa Matteo and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today. Karen, we begin with

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<v Speaker 2>an escalation in the trade war. Just a few hours ago,

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<v Speaker 2>China announced it was once again increasing tariffs on US goods.

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<v Speaker 2>Let's go to Hong Kong get the very latest with

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<v Speaker 2>Bloomberg's Jill Desis.

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<v Speaker 3>Jill, Good morning, Lisa and Karen. Yes, So, the latest

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<v Speaker 3>we have from China is that they will raise tariffs

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<v Speaker 3>and all US goods from eighty four percent to one

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<v Speaker 3>hundred and twenty five percent. That's starting April twelfth, and

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<v Speaker 3>then they say that they ultimately plan to ignore any

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<v Speaker 3>further increases announced by Washington. The Chinese officials actually called

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<v Speaker 3>the latest the Trump's administration, the latest moves a joke.

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<v Speaker 3>They said that have given that American goods are no

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<v Speaker 3>longer marketable in China under the curve teriff rates. If

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<v Speaker 3>the US further raises tariffs on Chinese exports, they are

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<v Speaker 3>just going to disregard those measures. Seem that, at least

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<v Speaker 3>in response to that move from Donald Trump overnight to

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<v Speaker 3>clarify actually that the terriff rights on Chinese goods flowing

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<v Speaker 3>into the United States were actually one hundred and forty

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<v Speaker 3>five percent if you were to take into account earlier measures.

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<v Speaker 3>They raise these rates this time around and then say

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<v Speaker 3>they are done at this point. You know, we saw

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<v Speaker 3>and five hundred futures fall further after this announcement. We

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<v Speaker 3>saw futures on the Hansang China Enterprises INEX in Hong

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<v Speaker 3>Kong pair gains that actually closed a little bit up

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<v Speaker 3>earlier today, just on bets that China would introduce more

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<v Speaker 3>stimulus to sort of help its economy. There's some speculation

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<v Speaker 3>that that may be coming down the pike at some point.

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<v Speaker 3>But ultimately, what we're really seeing here is this escalation

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<v Speaker 3>and tensions between Beijing and Washington. Neither side has really

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<v Speaker 3>blinked at this point. We'll have to see what ultimately

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<v Speaker 3>happens in Washington in response to this, but at least

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<v Speaker 3>from China's perspective, they're pretty much done here in Hong Kong.

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<v Speaker 3>This is Jill deesis Bloomberg Radio.

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<v Speaker 2>All right, Jill, thank you about the latest news on China.

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<v Speaker 2>Increasing tariffs comes after President Trump expressed optimism a deal

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<v Speaker 2>with Beijing. Will be reached.

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<v Speaker 4>We're resetting the table, and I'm sure that we'll be

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<v Speaker 4>able to get along very well. I have great respect

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<v Speaker 4>for President She's been in a true sense, he's been

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<v Speaker 4>a friend of mine for a long period of time,

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<v Speaker 4>and I think that we'll end up working on something

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<v Speaker 4>that's very good for both countries.

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<v Speaker 2>The White House confirms China now faces a one hundred

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<v Speaker 2>and forty five percent levy on all goods it sends

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<v Speaker 2>to the US well.

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<v Speaker 5>Karen Bloomberg News has learned top European officials are planning

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<v Speaker 5>to visit China later this year to discuss trade with

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<v Speaker 5>President Jijin Ping. A source to say European Commissioned President

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<v Speaker 5>Ursula Vonderline and European Council President Antonio Costa have agreed

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<v Speaker 5>to the summit in Beijing. The possible meeting. It comes

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<v Speaker 5>as Spanish Prime Minister Pedro Sanchez visited Beijing today, saying

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<v Speaker 5>he sees China as a partner of the EU.

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<v Speaker 2>Lisa Bridgewater Associates founder Ray Dalio says the tariff turmoil

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<v Speaker 2>has damaged the US reputation for really liability. Dollehoe spoke

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<v Speaker 2>with the Bloomberg's Francine lackwall.

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<v Speaker 6>I'm not the politician.

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<v Speaker 7>I'm not the negotiator.

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<v Speaker 6>I'm not the person to say whether that style of

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<v Speaker 6>handling it was better or worse. I would say that

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<v Speaker 6>it dramatically affected psychology and attitude about the United States' reliability.

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<v Speaker 2>And Dolio said that while he is pleased about Trump's

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<v Speaker 2>decision to pivot, he cautioned that the volatility will have

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<v Speaker 2>lasting effects. Here the full conversation on the latest edition

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<v Speaker 2>of the Bloomberg in the City podcast.

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<v Speaker 5>And futures are lower this morning as a turbulent week

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<v Speaker 5>to the markets comes to a close. Yesterday, stocks gate

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<v Speaker 5>back a chunk of Wednesday's massive rally. The S and

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<v Speaker 5>P five hundred fell three and a half percent.

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<v Speaker 2>Well, there's another worry for Wall Street this morning, Lisa,

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<v Speaker 2>as the safe haven status of US treasuries and the

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<v Speaker 2>dollar have come into question. We get the latest of

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<v Speaker 2>Bloomberg's John Tucker, John, Good morning, Good.

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<v Speaker 8>Morning, Karen. Normally, in periods of stress, money flows into

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<v Speaker 8>the perceived safety of US treasuries. They rallied during the

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<v Speaker 8>global financial crisis nine to eleven and even when America's

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<v Speaker 8>own credit rating was cut. But now as President Trump

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<v Speaker 8>unleashes an all out of salt on global trade. Their

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<v Speaker 8>status is the world safe haven is increasingly coming into question,

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<v Speaker 8>Henry Allen at Deutsche Bank, Whereas this could be the

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<v Speaker 8>start of a regime change.

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<v Speaker 6>It's really striking that today we have seen US treasury

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<v Speaker 6>sell off quite severely in response to what's going on.

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<v Speaker 7>So I think that does speaks that broad a confidence crisis.

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<v Speaker 8>As US debts sold off, yields, especially on the longer

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<v Speaker 8>term debt, have surged in recent days. The dollar has

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<v Speaker 8>also plunged, and a disconcerting pattern has emerged investors dumping

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<v Speaker 8>treasuries at the same time they sold stocks and other

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<v Speaker 8>risky assets. As former Treasury Secretary Larry Summer says, they're

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<v Speaker 8>trading like the debt of an emerging market country, you know, Yorkome.

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<v Speaker 8>John Tucker, Bloomberg.

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<v Speaker 5>Radio, All right, thanks John. It also remains to be

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<v Speaker 5>seen what impact the tariff turmoil we'll have on corporate earnings.

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<v Speaker 5>This morning, big banks begin to rep Let's get a

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<v Speaker 5>preview with Bloomberg's Shanali Bosick with JP Morgan.

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<v Speaker 9>Kicking off big bank earnings in the middle of an

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<v Speaker 9>escalating tariff war, investors will be watching out for how

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<v Speaker 9>much money the big banks are making at their trading

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<v Speaker 9>desks in the middle of historic volatility. Investors will also

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<v Speaker 9>be keeping an eye on how much these banks are

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<v Speaker 9>able to lend as consumers are becoming more wary about

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<v Speaker 9>potential inflation on the heels of tariffs. I'm Shanali Basic

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<v Speaker 9>in New York for Bloomberg Radio.

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<v Speaker 2>All right, Chanale, thank you well. In other news this morning,

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<v Speaker 2>a New York City sight seeing helicopter broke apart in

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<v Speaker 2>midair and crashed into the Hudson River, killing the pilot

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<v Speaker 2>and a family of five Spanish tourists. New York Police

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<v Speaker 2>Commissioner Jessica Tish explained it was only in the air

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<v Speaker 2>for fifteen minutes when it reached the George Washington Bridge

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<v Speaker 2>before turning south, then crashing shortly thereafter.

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<v Speaker 3>The aircraft lost control and hit the water just a

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<v Speaker 3>few feet off the coast of peer A.

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<v Speaker 6>Park in Hoboke, and.

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<v Speaker 2>The victims included Siemens executive August den Esco Barr. New

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<v Speaker 2>York City Mayor Eric Adams we.

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<v Speaker 10>Loss of five family members and a pilot to an

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<v Speaker 10>incident was still investigating their many unknowns here, but without federal, state,

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<v Speaker 10>and city partners. We'll find out exactly what happened.

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<v Speaker 2>The helicopter, identified by the FAA as a Bell two

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<v Speaker 2>six helicopter, was on its sixth flight of the day.

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<v Speaker 2>It was found upside down in the fifty degree water

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<v Speaker 2>when rescuers arrived at the scene, which was closer to

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<v Speaker 2>the New Jersey side of the Hudson River. The NTSB

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<v Speaker 2>and the FAA are investigating well.

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<v Speaker 5>Looking at the nation's capital, the House narrowly passed a

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<v Speaker 5>framework for a budget proposal that President Trump supported, but

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<v Speaker 5>it's not a done deal. Bloomberg's Amy Morris is in

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<v Speaker 5>Washington with what comes next.

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<v Speaker 11>House Speaker Mike Johnson celebrated the passage of the blueprint legislation.

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<v Speaker 8>Big components of the One Big, Beautiful Bill is to

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<v Speaker 8>ensure that we don't have the largest tax increase in

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<v Speaker 8>US history all at once.

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<v Speaker 11>Johnson says this paves the way for Republicans to cut

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<v Speaker 11>one and a half trillion dollars from the budget. House

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<v Speaker 11>Minority Leader Hakim Jeffrey says that can't happen unless you

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<v Speaker 11>cut medicaid.

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<v Speaker 5>Republicans can run from their proposal, which is the largest

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<v Speaker 5>Medicaid cut in American history, but we will never allow

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<v Speaker 5>them to hide.

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<v Speaker 11>Johnson has set a target of the end of May

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<v Speaker 11>to enact the bill. Senate Republicans talked about getting it

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<v Speaker 11>done by august in Washington. Amy Morris Bloomberg Radio, It's time.

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<v Speaker 2>Now for a look at some of their stories making

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<v Speaker 2>news in New York and around the world, and for

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<v Speaker 2>that we're joined by Bloomberg's Michael Barr Michael, Good Morning,

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<v Speaker 2>Good Morning, Karen.

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<v Speaker 7>The Supreme Court says the Trump administration must work to

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<v Speaker 7>bring back a Maryland man who was mistakenly deported to

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<v Speaker 7>El Salvador. Kilar Abrego Garcia is a Salvadoran citizen who

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<v Speaker 7>had an immigration court order preventing his deportation to his

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<v Speaker 7>native country over fears he would face persecution from local games.

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<v Speaker 7>The administration has conceded that it made a mistake in

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<v Speaker 7>sending him to El Salvador, where he is being held

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<v Speaker 7>in a notorious prison, but also argued that it no

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<v Speaker 7>longer could do anything about it. Former federal prosecutor and

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<v Speaker 7>Loyola Law School professor Lori Levinson.

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<v Speaker 12>This has been the first big pushback on the administration

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<v Speaker 12>by the Supreme Court, and it took the administration basically

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<v Speaker 12>taking a hard line that they didn't have to do

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<v Speaker 12>anything to bring back somebody, even though they wrongfully sent

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<v Speaker 12>them to a foreign country.

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<v Speaker 7>Loyola Law School professor Lori Levinson, a Russian American woman

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<v Speaker 7>freed by Moscow, has arrived back in the US as

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<v Speaker 7>part of a prisoner swap. A plane carrying Cassenna Carolina

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<v Speaker 7>landed late last night at Joint Bass Andrews, where she

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<v Speaker 7>was greeted by her fiancee. She was released earlier in

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<v Speaker 7>the day in exchange for a Russian German Man who

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<v Speaker 7>had been jailed in the US on smuggling charges. Carolina

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<v Speaker 7>was arrested last year, convicted of treason on charges stemming

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<v Speaker 7>from a donation of just fifty two dollars to a

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<v Speaker 7>charity aiding Ukraine. There are now two hundred and twenty

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<v Speaker 7>two reported depths in the tragic roof collapse of a

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<v Speaker 7>crowded nightclub in the Dominican Republic this week search for

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<v Speaker 7>bodies and Santo Domingo has ended, and as we have

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<v Speaker 7>been reporting, a New York City sight seeing helicopter broke

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<v Speaker 7>apart in midair and crashed into the Hudson River, killing

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<v Speaker 7>all six people on board. This witness saw it happen.

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<v Speaker 7>It was just coming down and.

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<v Speaker 10>At forty five angle and they went straight into the

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<v Speaker 10>water and it was a big splash.

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<v Speaker 4>It was crazy.

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<v Speaker 7>The five passengers were all from Spain. The pilot also

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<v Speaker 7>killed Global News twenty four hours a day and whenever

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<v Speaker 7>you want it with Bloomberg News now now Michael Barr

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<v Speaker 7>and this is Bloomberg Heron.

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<v Speaker 2>All right, Michael Barr, thank you time now for the

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<v Speaker 2>Bloomberg Spores update. Here's John Stshauer, John, good morning, Good

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<v Speaker 2>morning daring.

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<v Speaker 1>Not the first time Justin Rose has had a good

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<v Speaker 1>start to the Masters. In fact, no one has had

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<v Speaker 1>the first round we need more often. This is the

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<v Speaker 1>fifth time, one more than Jack Nicholas, who won the

0:10:04.679 --> 0:10:05.760
<v Speaker 1>Masters six times.

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<v Speaker 7>Rose has never won the green jacket.

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<v Speaker 1>Will this be the year for the forty four year

0:10:10.480 --> 0:10:13.000
<v Speaker 1>old from England who's plenty the Masters for the twentieth time.

0:10:13.040 --> 0:10:16.000
<v Speaker 1>He had a brilliant opening round a seven under sixty five.

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<v Speaker 1>He needed only twenty two plucks.

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<v Speaker 13>It was a really good day's golf on a golf

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<v Speaker 13>course that was a stern test. I think if you

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<v Speaker 13>look at the overall leaderboard, not many low scores out there,

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<v Speaker 13>so you had to take got a quality shots and

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<v Speaker 13>the light over the way played.

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<v Speaker 1>Three golfers trail by three, led the oberg the Canadian

0:10:33.040 --> 0:10:36.840
<v Speaker 1>Cory Connors and the defendee champion Scottie Sheffler. Rory McElroy

0:10:37.320 --> 0:10:39.800
<v Speaker 1>was four under with four roles to play, then had

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<v Speaker 1>two double bogies. The next in Detroit, gave three of

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<v Speaker 1>their top players the night off, lost one to fifteen

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<v Speaker 1>to one oh six Cade Cunningham thirty six points for

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<v Speaker 1>the Pistons, who've gone from fourteen wins last season to

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<v Speaker 1>forty four this year, and as the now they'd played

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<v Speaker 1>the Knicks in the first round of the playoffs. Although

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<v Speaker 1>the Knicks lead over Indiana for third in the East

0:10:58.240 --> 0:11:00.160
<v Speaker 1>is down to one game, the Rangers took out some

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<v Speaker 1>frustration for their disappointing season, lasting the Islanders at Ubs

0:11:04.240 --> 0:11:06.800
<v Speaker 1>Arena nine to two. Rangers scored four goals in the

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<v Speaker 1>first period, four more than the third. Red Sox salvaged

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<v Speaker 1>the game with the Blue Jays at Fenway four to three,

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<v Speaker 1>and Tenames the Yankees back home Tonight's Bay the Giant

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<v Speaker 1>Semester and Sacramento taking on the Aids. The Jets brought

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<v Speaker 1>in Allen Lazar because of his history catching passages from

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<v Speaker 1>Aaron Rodgers in Green Bay.

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<v Speaker 7>Rogers has gone.

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<v Speaker 1>Lazards stayed, but his salary was cut from eleven million

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<v Speaker 1>to two minds. John Stanshy, I were Bloomberg Sports.

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<v Speaker 14>Kenny Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 14>and around the world on Bloomberg dot Com and the

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<v Speaker 14>Bloomberg Business Ad. This is Bloomberg Daybreak.

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<v Speaker 5>Hey, it's about thirteen on Wall Street. Well, some more

0:11:45.000 --> 0:11:48.280
<v Speaker 5>volatility thrust into the market. Yesterday President Trump's tariffs on

0:11:48.400 --> 0:11:53.360
<v Speaker 5>China actually higher than previously announced, and now China retaliating again.

0:11:53.440 --> 0:11:55.120
<v Speaker 5>You're here to break it down for us. As Bloomberg

0:11:55.200 --> 0:11:58.680
<v Speaker 5>Senior editor Bill Farries. Bill, it's hard to keep up

0:11:58.760 --> 0:12:02.440
<v Speaker 5>with his news flow constantly changing. So now the White

0:12:02.480 --> 0:12:04.760
<v Speaker 5>House says the total tariffs and post on China now

0:12:04.800 --> 0:12:07.000
<v Speaker 5>add up to one hundred and forty five percent. And

0:12:07.200 --> 0:12:09.240
<v Speaker 5>now we're learning China is going to raise tariffs on

0:12:09.280 --> 0:12:12.480
<v Speaker 5>all US codes from eighty four percent to one hundred

0:12:12.480 --> 0:12:14.760
<v Speaker 5>and twenty five percent. I mean, how long is this

0:12:14.840 --> 0:12:15.800
<v Speaker 5>back and forth going to go on?

0:12:16.800 --> 0:12:19.000
<v Speaker 15>You know, yes, what we've been talking about all day.

0:12:19.080 --> 0:12:21.640
<v Speaker 15>Thanks for having me. There's a real question at what

0:12:21.840 --> 0:12:25.120
<v Speaker 15>point do these tariffs kind of start becoming meaningless numbers.

0:12:25.200 --> 0:12:28.760
<v Speaker 15>I mean, we know an analysis by Bloomberg Economics showed

0:12:28.840 --> 0:12:32.200
<v Speaker 15>that once you get over one hundred percent tariffs, at

0:12:32.320 --> 0:12:35.640
<v Speaker 15>least in the medium term, you basically bring an end

0:12:35.720 --> 0:12:39.960
<v Speaker 15>to bilateral trade. It's basically a complete decoupling. But even

0:12:40.000 --> 0:12:42.160
<v Speaker 15>in the short term, you know, the big question is

0:12:42.200 --> 0:12:45.360
<v Speaker 15>when do you start seeing the impacts from this, And

0:12:45.440 --> 0:12:48.840
<v Speaker 15>we're seeing it now with some companies already cutting back

0:12:49.000 --> 0:12:52.120
<v Speaker 15>on purchase orders from China. US companies cutting back on

0:12:52.200 --> 0:12:56.439
<v Speaker 15>purchase orders and a lot of uncertainty, CEOs tossing out

0:12:56.480 --> 0:12:59.559
<v Speaker 15>full your guidance, and no one really knows where this

0:12:59.720 --> 0:13:02.600
<v Speaker 15>is except that it's headed to a place we haven't

0:13:02.600 --> 0:13:05.920
<v Speaker 15>been before. But China's saying they're raising US tariffs on

0:13:05.960 --> 0:13:08.000
<v Speaker 15>the US goods till one hundred and twenty five percent,

0:13:08.480 --> 0:13:10.200
<v Speaker 15>and they added to that that they are not going

0:13:10.280 --> 0:13:12.559
<v Speaker 15>to go any further. They said they won't respond to

0:13:12.640 --> 0:13:16.120
<v Speaker 15>additional US moves because they said what the Trump administration

0:13:16.320 --> 0:13:18.080
<v Speaker 15>is doing now has quote become a joke.

0:13:18.559 --> 0:13:20.559
<v Speaker 5>Yeah, And they said they are going to ignore it.

0:13:20.720 --> 0:13:23.040
<v Speaker 5>I mean, can they do that? Can you just ignore it?

0:13:24.040 --> 0:13:27.199
<v Speaker 15>I think, you know, at some level it becomes it's

0:13:27.280 --> 0:13:29.440
<v Speaker 15>not clear that it really makes a difference. Right Once,

0:13:29.960 --> 0:13:31.840
<v Speaker 15>once you have one hundred and thirty percent or one

0:13:31.880 --> 0:13:34.440
<v Speaker 15>hundred and forty percent tariffs on something, doesn't really matter

0:13:34.480 --> 0:13:37.040
<v Speaker 15>if you go to one hundred and sixty percent. Maybe

0:13:37.120 --> 0:13:39.640
<v Speaker 15>for some companies it does, but for the vast majority

0:13:39.679 --> 0:13:42.400
<v Speaker 15>of products, if you're talking about more than a doubling

0:13:42.480 --> 0:13:45.480
<v Speaker 15>of their costs, you're probably starting to wipe out that

0:13:45.679 --> 0:13:46.400
<v Speaker 15>market for them.

0:13:46.720 --> 0:13:49.360
<v Speaker 5>Okay, Now you talked about briefly some of the corporation's

0:13:49.400 --> 0:13:53.240
<v Speaker 5>businesses how it's affecting them. Dig more into the global

0:13:53.360 --> 0:13:55.199
<v Speaker 5>impact of all of this back and forth.

0:13:56.240 --> 0:13:59.800
<v Speaker 15>Well, it's you know, it's it's obviously the biggest trading

0:14:00.000 --> 0:14:03.960
<v Speaker 15>relationship in the world, the US China trade relationship seven

0:14:04.040 --> 0:14:07.160
<v Speaker 15>hundred billion dollars in annual trade back in normal times.

0:14:08.080 --> 0:14:12.640
<v Speaker 15>But it's really it's bigger than that, because we're talking

0:14:12.720 --> 0:14:17.719
<v Speaker 15>about American companies that have supply chains that maybe go

0:14:17.960 --> 0:14:21.760
<v Speaker 15>from China into Vietnam, into another country, maybe even into

0:14:21.840 --> 0:14:26.120
<v Speaker 15>Europe than over to the US. We've already seen as

0:14:26.200 --> 0:14:30.360
<v Speaker 15>of several days ago, eleven hundred requests from American companies

0:14:30.680 --> 0:14:34.600
<v Speaker 15>seeking exemptions from some of these teriffs, because they're saying,

0:14:34.880 --> 0:14:37.960
<v Speaker 15>even if we want to produce more in the United States,

0:14:38.480 --> 0:14:41.400
<v Speaker 15>the goods we need to make that production possible to

0:14:41.520 --> 0:14:45.520
<v Speaker 15>build up that capacity are getting tariffed, so we would

0:14:45.600 --> 0:14:47.920
<v Speaker 15>like to have some of these exemptions. But you're also

0:14:48.080 --> 0:14:52.280
<v Speaker 15>seeing Europe now, European leaders planning to go to China.

0:14:52.920 --> 0:14:55.840
<v Speaker 15>You have the Spanish Prime Minister saying that the EU

0:14:56.000 --> 0:14:58.920
<v Speaker 15>may need to shift more of its attention to better

0:14:59.040 --> 0:15:02.960
<v Speaker 15>relations with China. So China is potentially going to become

0:15:03.280 --> 0:15:06.560
<v Speaker 15>a big beneficiary of all this. They have things they

0:15:06.640 --> 0:15:08.920
<v Speaker 15>can do to at least cushion the shock from the

0:15:09.040 --> 0:15:12.080
<v Speaker 15>US measures, but they certainly can't overcome.

0:15:11.720 --> 0:15:12.080
<v Speaker 7>All of it.

0:15:12.280 --> 0:15:16.000
<v Speaker 15>So we're really in a place uncharted waters we've never

0:15:16.080 --> 0:15:16.560
<v Speaker 15>been before.

0:15:16.840 --> 0:15:19.760
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