WEBVTT - Trump Hikes Brazil Tariffs; Texas Flood Recovery Efforts

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

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

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Well, Karen, we begin with the latest developments in the

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<v Speaker 3>global trade war. President Donald Trump has unveiled a new

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<v Speaker 3>round of tariff demand letters, including a fifty percent rate

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<v Speaker 3>on imports from Brazil that threat set the country's currency

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<v Speaker 3>plunging as the president escalates a dispute with leftist leader

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<v Speaker 3>Luisa Nacio Lula de Silva.

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<v Speaker 4>We get more from Bloomberg's Jill Lisis.

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<v Speaker 5>This is certainly one that seems to be more political

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<v Speaker 5>than economic. I mean, Brazil, first of all, they weren't

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<v Speaker 5>part of the Liberation Day grouping because it's run a

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<v Speaker 5>trade deficit of the United States. Almost all of the

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<v Speaker 5>others have really run large surpluses. So what he's spelled

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<v Speaker 5>out as it relates to Brazil, as it relates to

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<v Speaker 5>their leader Lula, is that he's really upset about the

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<v Speaker 5>treatment of former President Bolsonaro. And then the other thing

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<v Speaker 5>I'd bring up as it relates to the Brazil situation

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<v Speaker 5>is that you know, probatent member of Bricks. They held

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<v Speaker 5>their big summit in Brazil just a few days ago,

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<v Speaker 5>and Lula was really kind of leading the charge there

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<v Speaker 5>in terms of railing against the US on various.

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<v Speaker 4>Issues, Bloomberg's Jill Lisis says.

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<v Speaker 3>President Trump also announced tariff rates on other countries, including

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<v Speaker 3>thirty percent for Algeria, Libya, Iraq, and Sri Lanka, and

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<v Speaker 3>a twenty percent rate on goods from the Philippines Nathan.

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<v Speaker 2>President Trump also confirm that a planned fifty percent tariff

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<v Speaker 2>on copper imports will begin on the first of August.

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<v Speaker 2>Analysts say the move could hurt American producers of everything

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<v Speaker 2>from automobiles to appliances. The chair of the President's Council

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<v Speaker 2>of Economic Advisor, Stephen Myron, says the move is a

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<v Speaker 2>key part of Trump's push to rebuild US industries.

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<v Speaker 6>You know, there are certain critical minerals, of which copper

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<v Speaker 6>is one that you just absolutely need if you're going

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<v Speaker 6>to have a manufacturing sector. And having a manufacturing sector

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<v Speaker 6>is important, not just economically, because it tends to be

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<v Speaker 6>a high high capital, high productivity field.

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<v Speaker 2>President's Council of Economic Advisors Stephen Myron, speaking of Bloomberg yesterday,

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<v Speaker 2>President Trump says copper was the second most used medal

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<v Speaker 2>by the Department of Defense. Well.

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<v Speaker 3>Meantime, Karen, President Trump is sounding optimistic about a ceasefire

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<v Speaker 3>deal between Israel and Hamas. The President says, negotiators are

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<v Speaker 3>very close to an agreement.

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<v Speaker 7>There's nothing different, interdefinite about war and Gaza and all

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<v Speaker 7>of the other places that we all deal with so much.

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<v Speaker 7>But there's a very good chance that we'll have a

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<v Speaker 7>settlement and agreement of some kind this week and maybe

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<v Speaker 7>next week.

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<v Speaker 3>If President Trump responded to an Axios report that US,

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<v Speaker 3>Israeli and Katari officials held a secret meeting at the

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<v Speaker 3>White House to work out lingering disagreements. Israeli Prime Minister

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<v Speaker 3>Benjamin Netanna, who says he is sticking to his goals

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<v Speaker 3>in Gaza.

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<v Speaker 8>I want to achieve the release of our hostages. We

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<v Speaker 8>want to end Hamas rule in Gaza. We want to

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<v Speaker 8>make sure that Gaza does not pose a threat to

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<v Speaker 8>his wilk anymore.

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<v Speaker 3>Prime Minister Tanyahu spoke at a meeting with senators on

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<v Speaker 3>Capitol Hill. Hama says it's agreed to release ten hostages

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<v Speaker 3>as talks continue. White House Envoy Steve Whitcoff says the

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<v Speaker 3>US wants a deal by the end of the week

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<v Speaker 3>on a sixty day ceasefire that would free all hostages

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<v Speaker 3>living and dead now caring. An update on the flood

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<v Speaker 3>recovery in Texas. At least one hundred and sixty people

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<v Speaker 3>are still missing in hardest hit Kerr County. Officials say

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<v Speaker 3>no one has been found alive since July fourth, after

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<v Speaker 3>the wall of water swept through more than sixty miles

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<v Speaker 3>of the Guadalupe River. As the search effort continues, Homeland

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<v Speaker 3>Security Secretary Christy Nome is reiterating her call to overhaul

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<v Speaker 3>the Federal Emergency Management Agency.

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<v Speaker 6>State and local leaders know that their communities and what

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<v Speaker 6>they know what they need better than the government ever could.

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<v Speaker 2>They know their exact needs, and they know how best

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<v Speaker 2>to prepare.

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<v Speaker 3>Secretary Nomes spoke at a meeting of the FEMA Review

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<v Speaker 3>Council in New Orleans. FEMA personnel are currently assisting in

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<v Speaker 3>the recovery effort in Texas, and President Trump is scheduled

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<v Speaker 3>to visit the state tomorrow.

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<v Speaker 2>Nathan Let's turn to the Mark. Yes, in Vidia has

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<v Speaker 2>reached historic heights. That chip maker became the first company

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<v Speaker 2>to reach a four trillion dollar market valuation. Ian King

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<v Speaker 2>covers in VideA for Bloomberg News on.

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<v Speaker 9>A price to innings ratio fifty two times doesn't sound

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<v Speaker 9>totally crazy, and that doesn't even get it into the

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<v Speaker 9>top ten list of semiconducta makers, so relatively it's not

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<v Speaker 9>that expensive. No other semiconduct company has Ava had more

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<v Speaker 9>than one hundred billion dollars of revenue, have a not

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<v Speaker 9>even Intel at its peak.

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<v Speaker 2>Bloombergy and King says in Vidia shares are at more

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<v Speaker 2>than one thousand percent since the beginning of twenty twenty three,

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<v Speaker 2>and video now accounts for seven and a half percent

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<v Speaker 2>of the s and P five hundred and the stock

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<v Speaker 2>is up two thirds of up percent this morning.

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<v Speaker 3>And Microsoft shares a little changed in the pre market, Karen,

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<v Speaker 3>but they also closed at an all time high yesterday,

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<v Speaker 3>trailing only in Video in market cap. And Microsoft says

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<v Speaker 3>it's push into artificial intelligence is paying off, Bloomberg News

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<v Speaker 3>has learned. At a presentation this week, the company chief commercial

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<v Speaker 3>officer Judson Altoff said AI tools are boosting productivity and

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<v Speaker 3>everything from sales and customer service to software engineering. Altof

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<v Speaker 3>says AI saved Microsoft more than five hundred million dollars

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<v Speaker 3>last year in its Call Centers alone, Nathan well En.

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<v Speaker 2>Vidion, Microsoft sharers are climbing to all time highs.

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<v Speaker 4>Tesla has not.

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<v Speaker 2>The stock is down twenty six percent and twenty twenty five.

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<v Speaker 2>CEO Elon Musk lashed out at Webbush's Dan Ives when

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<v Speaker 2>the analysts made suggestions to Tesla's board must set on

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<v Speaker 2>X quote shut up, Dan, and we get this story

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<v Speaker 2>with Bloomberg's Charlie Pellett.

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<v Speaker 10>Musk's comment came after Ives called on Tesla's board to

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<v Speaker 10>rein in Musk's political activity.

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<v Speaker 4>Bay Look, I mean, I knew you On was not

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<v Speaker 4>gonna be happy.

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<v Speaker 10>I'ves explained his position on Bloomberg BusinessWeek Daily.

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<v Speaker 9>The reality is, you know the board they basically need

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<v Speaker 9>to now step it up.

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<v Speaker 10>Ives does remain Wall Street's most bullish Tesla analyst, with

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<v Speaker 10>an outperform rating on the stock and a five hundred

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<v Speaker 10>dollars price target in New York. Charlie Bloomberg Radio, all right, Charlie,

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<v Speaker 10>thank you. Let's check some other stocks on the move

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<v Speaker 10>this morning. We're watching shares of Kellogg. They are surging

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<v Speaker 10>more than forty eight percent. Bloomberg News has learned the

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<v Speaker 10>serial maker may be bought by Italian candymaker Ferrero International

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<v Speaker 10>for about three billion dollars. Kellogg, of course, the owner

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<v Speaker 10>of Cerial brands, Fruit Loops and Frosted Flakes. It's been

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<v Speaker 10>struggling to revive growth as consumers move away from sugary

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<v Speaker 10>foods and Nathan.

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<v Speaker 2>A management change is on the way at one of

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<v Speaker 2>the world's biggest advertising agencies, WPPS named Microsoft executive Cindy

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<v Speaker 2>Rose as its next chief executive officer. She replaces Mark

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<v Speaker 2>Reid as the advertising group looks for ways to restart

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<v Speaker 2>sales growth and win new customers. Rose, who is currently

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<v Speaker 2>Chief Operating Officer at Microsoft's Global Enterprise Business, begins her

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<v Speaker 2>new job at WPP on September. First time Now for

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<v Speaker 2>a look at some of the other stories making news

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

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<v Speaker 2>were joined by Bloomberry's and Michael bar Michael Good Morning.

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<v Speaker 11>Good Morning. Karen Queen's assemblyman Zoron Mumdani thanked teachers after

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<v Speaker 11>he picked up a key endorsement in his bid to

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<v Speaker 11>be the next mayor of New York. The United Federation

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<v Speaker 11>of Teachers, the city's most powerful teachers union, is backing

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<v Speaker 11>the Democratic Socialist The UFT had not endorsed a candidate

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<v Speaker 11>in the Democratic primary.

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<v Speaker 12>This is the campaign of working people, This is the

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<v Speaker 12>campaign organized labor, and this is the campaign that will

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<v Speaker 12>win in November.

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<v Speaker 11>The endorsement comes after President Trump threatened to overtake New

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<v Speaker 11>York City should Mamdani be elected. A Long Island community

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<v Speaker 11>is angry after a twenty year old Suffolk County Community

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<v Speaker 11>College honors student was detained by ICE agents. Sarah Lopez

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<v Speaker 11>Garcia was sent to a Louisiana detention facility to await

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<v Speaker 11>trial and probable deportation to Colombia. Lopez Garcia was detained

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<v Speaker 11>almost two months ago with their mother when ICE agents

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<v Speaker 11>were looking for someone else. Her fiance says Lopez Garcia

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<v Speaker 11>was in the process of seeking legal status in the

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<v Speaker 11>US when she was detained. Measles cases in the US

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<v Speaker 11>are at their highest in more than three decades. According

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<v Speaker 11>to the US Centers for Disease Control Land Prevention, the

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<v Speaker 11>US has closed to thirteen hundred cases since the beginning

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<v Speaker 11>of the year. That's higher than twenty nineteen. Eighteen states

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<v Speaker 11>have seen outbreaks this year. Experts fear the US may

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<v Speaker 11>lose its status as having eliminated measles, doctor Darien Sutton.

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<v Speaker 12>The reason is because measles is very good at infecting people.

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<v Speaker 12>Is the most contagious virus that exists on this planet.

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<v Speaker 12>And right now this surge is not just a surge,

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<v Speaker 12>it's a warning that our public health protective barrier has

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<v Speaker 12>cracks in it.

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<v Speaker 11>Doctor Darien Sutton. Manhattan rents hit a record high for

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<v Speaker 11>the fourth time in the past five months. According to

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<v Speaker 11>a prey Miller Samuel and broke Ridge Douglas Element. The

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<v Speaker 11>median rent on New leasas signed in June was four

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<v Speaker 11>six hundred and twenty five dollars. Global News twenty four

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<v Speaker 11>hours a day and whenever you want it with the

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<v Speaker 11>Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg Carrot.

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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 Sports updating. Here's Jean stash Hour John.

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<v Speaker 4>Good morning, morning Karen.

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<v Speaker 13>In the midst of last week's six game Yankee losing streak,

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<v Speaker 13>here the news that dependable starter Clark Schmidt was done

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<v Speaker 13>for the season, taking the spot of the rotation at

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<v Speaker 13>least for now. Cam Schlittler six foot six inch twenty.

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<v Speaker 4>Four year old from outside of Boston.

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<v Speaker 13>Made his major League debut at the Stadium, pitched well,

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<v Speaker 13>got held from the Yanks.

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<v Speaker 4>All Star infielder Hi.

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<v Speaker 8>Jove centerfield, Rodriguez Pack.

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<v Speaker 4>He's on the truck.

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<v Speaker 7>He's at all see ya pen the Monument Park A

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<v Speaker 7>solo shop for Chisholm four one.

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<v Speaker 13>Yanks on the Yes, there were two, and he's later

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<v Speaker 13>Jazz Chisholm homeward again. Yanks beats the A nine to six.

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<v Speaker 13>Chipship's now back playing at his better position, second base.

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<v Speaker 13>DJ Lemayhew had been playing there. Yanks didn't want to

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<v Speaker 13>use him at third base, didn't really have any use

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<v Speaker 13>for him, so they have designated Lemayeu for assignment.

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<v Speaker 4>Here's Aaron Boone in a.

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<v Speaker 14>Tough couple of days, you know, some some some hard conversations,

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<v Speaker 14>and you know, and then ultimately come into this decision

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<v Speaker 14>conclusion obviously not easy for you know, what's been a

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<v Speaker 14>great player and who's done a lot of great things

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<v Speaker 14>for this organization.

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<v Speaker 13>In le Mayeu's first two seasons with the Yanks, he

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<v Speaker 13>betted three twenty seven and three sixty four, but he's

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<v Speaker 13>not been anywhere near those averages Recently, the Mets reigned

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<v Speaker 13>out in Baltimore doubleheader today Red Sox a six straight

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<v Speaker 13>win ten to two over Colorado Nationals won for new

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<v Speaker 13>manager Miguel Cairo eight to two in Saint Louis. The

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<v Speaker 13>Giants are believed to be looking to sell a ten

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<v Speaker 13>percent ownership stake, and Eli Manning had expressed an interest.

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<v Speaker 13>He's now saying he won't pursue it because it's too

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<v Speaker 13>so the Giants you said to be worth ten billion dollars.

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<v Speaker 13>Frank Laden has died at ninety three, Brooklyn native who

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<v Speaker 13>became the coach in GM of the Utah Jazz.

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<v Speaker 4>His son Scott, the former nixt GM John Stashie. We're

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<v Speaker 4>Bloomberg Sports.

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

0:11:18.160 --> 0:11:21.000
<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 4>Good morning, I'm Nathan Hager.

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<v Speaker 3>Investors and businesses are grappling with the latest tariff letters

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<v Speaker 3>and sectoral threats from President Donald Trump, including fifty percent

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<v Speaker 3>rates for imports from Brazil and copper products. Joining us

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<v Speaker 3>now for the latest on the trade wars. Bloomberg News

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<v Speaker 3>Global Business Editor Josh Gaaloo and Josh. The copper tariff

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<v Speaker 3>in particular has gotten the market's attention pretty much all

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<v Speaker 3>week long. I mean there's still some questions about how

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<v Speaker 3>something like that could be implemented, though, are there.

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<v Speaker 8>Yeah.

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<v Speaker 15>As a matter of fact, markets appear to doubt that

0:11:59.720 --> 0:12:02.920
<v Speaker 15>it will be the full fifty percent that Trump has threatened.

0:12:03.080 --> 0:12:06.680
<v Speaker 15>You can see that in the margin between the price

0:12:06.720 --> 0:12:09.720
<v Speaker 15>in the US and the price in London, and they're

0:12:09.800 --> 0:12:13.960
<v Speaker 15>they're not pricing in that full fifty percent. But look,

0:12:14.000 --> 0:12:18.160
<v Speaker 15>this is something that you know, Trump and his administration

0:12:18.400 --> 0:12:21.720
<v Speaker 15>argue is sort of a national security priority because copper

0:12:21.800 --> 0:12:26.200
<v Speaker 15>is used in such an incredibly wide range of products

0:12:26.960 --> 0:12:31.920
<v Speaker 15>because of its obviously it's conductivity, conductivity, it's in a

0:12:31.920 --> 0:12:36.000
<v Speaker 15>lot of alloys. They're used for all kinds of appliances,

0:12:37.160 --> 0:12:42.480
<v Speaker 15>you know, motors, cars, everything. So you know, this is

0:12:42.480 --> 0:12:45.720
<v Speaker 15>a really difficult it's a it is a crucial metal

0:12:45.880 --> 0:12:49.080
<v Speaker 15>for the US and anyone looking to make these products.

0:12:49.280 --> 0:12:52.720
<v Speaker 15>But the US makes it about fifty percent of its own,

0:12:52.840 --> 0:12:55.720
<v Speaker 15>or it minds about fifty percent of its own copper,

0:12:55.800 --> 0:13:02.199
<v Speaker 15>and then the rest comes from you know, countries like Chile, Canada, Peru, Mexico.

0:13:02.720 --> 0:13:06.600
<v Speaker 15>So you know, this is a really this is going

0:13:06.679 --> 0:13:10.480
<v Speaker 15>to hurt American producers of all those things that I

0:13:10.600 --> 0:13:14.000
<v Speaker 15>was just mentioning who have to import copper. The price

0:13:14.080 --> 0:13:16.040
<v Speaker 15>is going to go up, and that kind of a

0:13:16.080 --> 0:13:17.920
<v Speaker 15>really wide impact on the economy.

0:13:18.480 --> 0:13:21.600
<v Speaker 3>And when it comes to this tariff threat for Brazil,

0:13:21.920 --> 0:13:25.320
<v Speaker 3>obviously a fifty percent rate is much higher than some

0:13:25.400 --> 0:13:27.760
<v Speaker 3>of the other rates that we've heard about so far,

0:13:27.880 --> 0:13:31.880
<v Speaker 3>But this one seems a little more political than related

0:13:31.920 --> 0:13:35.320
<v Speaker 3>to the actual trade dynamic between the US and Brazil.

0:13:35.280 --> 0:13:39.160
<v Speaker 15>That's right. What's interesting here is that Brazil actually runs

0:13:39.200 --> 0:13:42.679
<v Speaker 15>a deficit with the US when it comes to trading

0:13:42.720 --> 0:13:46.839
<v Speaker 15>of goods, and of course that balance of trade is

0:13:46.960 --> 0:13:50.559
<v Speaker 15>what Trump has always pointed to that he wants to

0:13:51.200 --> 0:13:55.360
<v Speaker 15>even out when he talks about putting in reciprocal tariffs

0:13:55.480 --> 0:14:01.400
<v Speaker 15>or even just straight bilateral tariffs. But you know, in

0:14:01.440 --> 0:14:05.920
<v Speaker 15>Trump's announcement for this, he did talk about Balsonaro, who

0:14:06.400 --> 0:14:09.400
<v Speaker 15>of course is the former Brazilian president who is facing

0:14:09.679 --> 0:14:13.600
<v Speaker 15>charges of insurrection after trying to interfere with the election

0:14:13.760 --> 0:14:17.760
<v Speaker 15>of in i think twenty twenty two of Lula. And

0:14:18.880 --> 0:14:21.040
<v Speaker 15>you know, he didn't even know there is no real

0:14:21.120 --> 0:14:25.600
<v Speaker 15>economic ground to stand on at least that's consistent with

0:14:25.640 --> 0:14:28.000
<v Speaker 15>his other tariffs that he's been putting on, you know,

0:14:28.040 --> 0:14:32.400
<v Speaker 15>across the board against countries. This one is clearly more political,

0:14:32.400 --> 0:14:36.840
<v Speaker 15>and he's demanding that Brazil dropped those charges, and right

0:14:36.880 --> 0:14:40.640
<v Speaker 15>now it looks like Brazil is very very much not

0:14:40.760 --> 0:14:43.080
<v Speaker 15>keen to do so, so we'll have to see how

0:14:43.120 --> 0:14:45.240
<v Speaker 15>that plays out. But you're right, it's really a much

0:14:45.280 --> 0:14:48.440
<v Speaker 15>more political use of that tool that we haven't quite

0:14:48.480 --> 0:14:51.480
<v Speaker 15>seen a use quite so blatantly like that.

0:14:52.000 --> 0:14:55.440
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<v Speaker 5>Ray