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Speaker 1: News when you want it with Bloomberg News Now, I'm

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Speaker 1: Doug Krisner. Earlier today, US Treasury Secretary Scott Besson seemed

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Speaker 1: to cast doubt on a timely resolution to the US

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Speaker 1: China trade war. He said the White House had not

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Speaker 1: offered to cut tariffs on China on a unilateral basis now.

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Speaker 1: Those remarks came in response to a report indicating the

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Speaker 1: US was considering slashing levies on Chinese goods. The Wall

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Speaker 1: Street Journal reported in some cases, tariffs could be cut

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Speaker 1: by more than half. Prior to the report, China signaled

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Speaker 1: it was open to trade talks with the US. Here

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Speaker 1: is Treasury Secretary Besson speaking at an event hosted by

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Speaker 1: the Institute for International Finance in Washington.

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Speaker 2: If China is serious on less dependence on export lead

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Speaker 2: manufacturing growth and a rebalancing toward a domestic economy, I

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Speaker 2: think they use the term dual circulation. Well right now,

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Speaker 2: it's really singular circulation. And if they want to rebalance,

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Speaker 2: let's do it together.

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Speaker 1: That is Treasury Secretary Bess. And he went on to

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Speaker 1: say a full rebalancing of trade might take two to

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Speaker 1: three years. Then, later in the day, after the closing

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Speaker 1: bell President Trump said China may receive a new tariff

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Speaker 1: right in the next two to three weeks. Here's Trump.

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Speaker 3: We're dealing with a lot of countries right now, and

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Speaker 3: it could be with China. But maybe we'll make a

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Speaker 3: special a deal and we'll see what it will be.

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Speaker 3: Right now, it's one hundred and forty five percent. That's

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Speaker 3: very high. It got there because of the fentanyl. They're

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Speaker 3: sending massive amounts of fentanyl into a country.

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Speaker 1: At the same time, President Trump dismissed a report in

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Speaker 1: The Financial Times that he's planning to spare car makers

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Speaker 1: from some of his most onerous tariffs. He told reporters

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Speaker 1: he's not considering changes to tariffs on autos or on

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Speaker 1: auto parts. Earlier, the FT had reported a move as

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Speaker 1: being considered to exempt car parts from the tariffs on

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Speaker 1: US imports from but in place to counter fentanyl production. Now,

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Speaker 1: car makers reportedly would also get a break from tariffs

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Speaker 1: on steel and aluminum. We got a slew of earnings

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Speaker 1: after the bell. IBM reported first quarter sales increase nearly

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Speaker 1: one percent to fourteen and a half billion dollars profit

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Speaker 1: excluding some items, a dollar sixty per share that was

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Speaker 1: above analyst estimates. I met Driani is senior managing director

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Speaker 1: at Evercore is SI.

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Speaker 4: If you look at you know the little bit of

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Speaker 4: noise that sayers on a segment level basis, while the

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Speaker 4: headline revenues look perfectly fine, infrastructure, while it was down

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Speaker 4: five six percent, actually did somewhat better than expected. So

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Speaker 4: se on the fringes, it seemed like the mix went

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Speaker 4: a little bit more hardware heavy, a little less consulting,

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Speaker 4: and maybe a shade less on the software side as well.

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Speaker 4: So that mix, I think doesn't get people too excited either.

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Speaker 4: You I didly want to see IBM we think be

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Speaker 4: more on software and consulting less on hardware.

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Speaker 1: That is I met Dririani from Evercore ISI now shares

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Speaker 1: and IBM fell five percent in lay treing on concern

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Speaker 1: over Doge cost cuts affecting the company's business. IBM said

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Speaker 1: about fifteen of its contracts with the federal government have

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Speaker 1: been either canceled or paused. More earnings on deck tomorrow

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Speaker 1: will get the numbers from Google parent alphabet and we

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Speaker 1: have a preview from Bloomberg's Tom Busby.

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Speaker 5: Key to Alphabets. Q one results is growth in its

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Speaker 5: Google Cloud unit, which will show whether the boom and

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Speaker 5: AI technology and the company's investments in AI infrastructure are

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Speaker 5: paying off. Despite being an also ran to Amazon and Microsoft.

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Speaker 5: Investors also looking to see what the company says about

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Speaker 5: the mounting regulatory pressures from the EU and the US

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Speaker 5: about allegedmentopolies in search and ad tech. Bloomberg consensus calls

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Speaker 5: for total revenue of just over eighty nine billion dollars

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Speaker 5: on earnings per share of two dollars and one cent.

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Speaker 5: Tom busby Bloomberg Radio.

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Speaker 1: Earlier on Wednesday, the Federal Reserve released its Beige Book

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Speaker 1: Survey of Regional Economic Activity. Now, the overall reading was

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Speaker 1: little changed from the previous report. Even so, the uncertainty

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Speaker 1: around international trade policy was pervasive. Here's Bloomberg's Michael McKee.

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Speaker 6: These are basically reports that people are getting ready for

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Speaker 6: a bad news, bad economic environment, but it doesn't mean

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Speaker 6: they've taken the steps to do so. Sort of backs

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Speaker 6: up what we've seen with the Conference Board and the

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Speaker 6: University of Michigan centiment indexes and what the Purchasing Managers

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Speaker 6: indexes are telling us that companies are nervous and consumers

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Speaker 6: are nervous, but the fen's going to want to see

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Speaker 6: some hard evidence that the economy is slowing down.

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Speaker 1: That is Bloomberg's Michael McKee. Now, the Big Book also

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Speaker 1: shows prices increased across all districts, with businesses expecting elevated

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Speaker 1: input cost as a result of those tariffs. Many firms

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Speaker 1: reported receiving notices from their suppliers about rising cost and

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Speaker 1: most businesses cited plans to pass on those higher prices

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Speaker 1: to consumers. And that is news when you want it

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Speaker 1: with Bloomberg News. Now, I'm Doug Prisoner and this is

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Speaker 1: Bloomberg