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

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen, the move we're seeing in markets this morning comes

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Speaker 2: on optimism that trade tensions between the US and China

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Speaker 2: may be easing. China says it is assessing the possibility

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Speaker 2: of trade talks with the US. It is the first

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Speaker 2: sign since President Donald Trump hiked tariffs last month that

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Speaker 2: negotiations could begin between the two sides. We get more

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Speaker 2: from Bloomberg New senior editor Bill Ferries.

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Speaker 4: It's really hard to know what's happening here or if

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Speaker 4: it's the market really looking for any sign of a

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Speaker 4: potential change, any sign that one side or both sides

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Speaker 4: are simultaneously starting to blink here. I mean, the China's

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Speaker 4: Commerce Ministry said on Friday that it noted the willingness

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Speaker 4: of some senior US officials to talk about harriffs. On

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Speaker 4: the other hand, you've had the US saying that they

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Speaker 4: want China to reach out, that China can't sustain these

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Speaker 4: tariffs for very long. This latest statement doesn't seem that

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Speaker 4: different on the Chinese side, but it is being taken

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Speaker 4: as perhaps an ALI branch that could allow both sides

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Speaker 4: to maybe save some face and start talks, even if

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Speaker 4: that's at.

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Speaker 2: A lower level and Bloomberg's Bill Ferry says, the economic

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Speaker 2: fallout from the confrontation maybe giving new momentum to efforts

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Speaker 2: to bring both sides to the table. The US economy

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Speaker 2: contracted at the start of the year, China's factory activity

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Speaker 2: slipped into its worst contraction since December of twenty twenty three.

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Speaker 5: Let's turn to politics now, Nathan.

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Speaker 3: The White House is set to release its first budget

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Speaker 3: request of President Trump's second term, the so called the

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Speaker 3: Skinny Budget. We'll call for five hundred and fifty seven

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Speaker 3: billion dollars in non defense spending. That's a nearly twenty

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Speaker 3: three percent drop from current levels. National security spending, meanwhile,

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Speaker 3: would rise to a record one point zero one trillion

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Speaker 3: dollars thirteen percent increase. Administration officials say the budget includes

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Speaker 3: significant cuts to environmental programs, foreign aid, the Education Department,

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Speaker 3: National Institutes of Health and Housing, and urban development. The

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Speaker 3: military boost would pay for the Golden Dome missile defense,

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Speaker 3: as well as shipbuilding, border security, and a military pay raise.

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Speaker 3: It's not clear how the budget request would handle entitlements.

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Speaker 3: They represent the bulk of federal spending.

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Speaker 2: And Karen, the president has signed an executive order to

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Speaker 2: end federal funding of public broadcasters NPR and PBS. Bloomberg's

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Speaker 2: John Tucker joins us with that part of the story.

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Speaker 6: John and Nathan, the most shouldn't really come as a surprise.

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Speaker 6: Back in March, President Trump was asked if he had

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Speaker 6: any plans to yank funding for NPR and PBS.

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Speaker 5: I would love to do that.

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Speaker 3: I think it's very unfair.

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Speaker 5: It's been very biased. The whole group, I mean the

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Speaker 5: whole group of them.

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Speaker 6: Or Republicans have long sought to eliminate funding for NPR

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Speaker 6: and PBS, and President Trump has repeatedly criticized press coverage

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Speaker 6: of his administer. Both public media outlets do receive a

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Speaker 6: small portion of their funding from the federal sources. PBS

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Speaker 6: is set to take the larger hit. The broadcaster relies

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Speaker 6: on federal funds for about sixteen percent of its overall budget.

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Speaker 6: You know you yorkcome, John Tucker, Bloomberg Radio.

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Speaker 5: All right, John, thank you a while.

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Speaker 3: The other major story out of Washington, as a shake

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Speaker 3: up in the West wing, President Trump is naming his

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Speaker 3: national Security Advisor Mike Waltz to be the next UN ambassador.

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Speaker 3: Back in March, Waltz admitted he mistakenly added Atlantic Editor

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Speaker 3: Jeffrey Goldenberg to a signal group chat about attack plans

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Speaker 3: in Yemen. Now, if confirmed by the Senate, he'll be

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Speaker 3: moving out of the Oval Office to UN headquarters in

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Speaker 3: New York, began more from Bloomberg Washington reporter Tyler Kendall.

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Speaker 7: In terms of a promotion versus a demotion, the National

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Speaker 7: Security Advisor is in the West Wing. He sees the

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Speaker 7: President every day. He gets a security detail much like

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Speaker 7: the chief of Staff that other members of the administration

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Speaker 7: don't necessarily get. He also has been at the forefront

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Speaker 7: of most of, if not all, of these foreign policy negotiations,

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Speaker 7: particularly when it comes to Ukraine and Russia. As the

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Speaker 7: administration tries to push forward that they are making progress.

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Speaker 7: They're announcing that a critical minerals agreement just the other day.

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Speaker 7: He was the one that went to Saudi Arabia to

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Speaker 7: kick off those talks.

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Speaker 3: And that's Bloomberg's Tyler Kendall. The president says Secretary of

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Speaker 3: State Marco Rubio will serve as interim National Security Advisor

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Speaker 3: Rubio is also leading the US Agency for International Development

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Speaker 3: after it was targeted for cuts, and he's also acting

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Speaker 3: head of the National Archives and Karen.

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Speaker 2: President Trump is putting new pressure on Iran. He says

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Speaker 2: he will impose secondary sanctions on nations or companies that

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Speaker 2: buy Iran's oil. The president posted on social media quote,

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Speaker 2: they will not be allowed to do business with the

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Speaker 2: United States of America in any way, shape or form.

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Speaker 2: Negotiations over Iran's nuclear program hit a wall this week.

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Speaker 2: A meeting that had been set for tomorrow was postponed,

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Speaker 2: and US officials said they never agreed to take part

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Speaker 2: in the latest stround of talks in the first place.

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Speaker 3: Return to the markets now, Nathan, in futures are high.

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Speaker 3: You're following eight straight days of gains for the S

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Speaker 3: and P five hundred. As you mentioned earlier, there is

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Speaker 3: optimism the US and China will begin trade negotiations. Two

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Speaker 3: stocks that are not participating in the euphoria are Apple

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Speaker 3: and Amazon. Shares of Apple are down three percent. The

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Speaker 3: iphonemaker's earnings report failed to soothe investor concerns about its

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Speaker 3: biggest challenges, including escalating tariff costs and a slowdown in

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Speaker 3: China CEO Tim Cooks as sales from China fell more

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Speaker 3: than expected two point three percent to sixteen billion dollars

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Speaker 3: in the second quarter. Analysts say that shortfall is an

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Speaker 3: ominous sign for what was once a growth market.

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Speaker 2: And here and shares of Amazon are down more than

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Speaker 2: two percent. The world's largest online retailer says it's bracing

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Speaker 2: for a tougher business climate due to tariffs and economic turmoil.

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Speaker 2: Amazon CEO and the jazz highlighted at the guaranty.

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Speaker 8: Obviously, none of us know exactly where tariffs will settle

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Speaker 8: or when.

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Speaker 5: We haven't seen any attenuation of demand yet.

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Speaker 8: To some extent, we've seen some heightened buying in certain

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Speaker 8: categories that may indicate stalking up in advance of any

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Speaker 8: potential tariff impact.

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Speaker 2: And despite the headwinds, Amazon CEO Andy Jassey reported a

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Speaker 2: nine percent increase in first quarter sales.

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Speaker 3: In addition to earnings, Nathan, Investors will have a key

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Speaker 3: economic report to look forward to, the April Jobs report.

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Speaker 3: We get a preview with Bloomberg's Michael McKee.

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Speaker 9: The jobs report may be the most important economic indicator

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Speaker 9: going forward, but maybe not this one. The President's big

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Speaker 9: tariff announcements came just ahead of the April survey week,

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Speaker 9: so companies likely didn't have a lot of time to react.

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Speaker 9: We may see some reduction in federal government employment, but

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Speaker 9: for the most part, the April figures should suggest private

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Speaker 9: sector hiring is on hold. Also, the FED watch is

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Speaker 9: the unemployment rate rather than overall job creation, and unemployment

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Speaker 9: is forecast to hold steady. Michael McKee, Bloomberg Radio.

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Speaker 5: All right, Mike, thanks well.

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Speaker 3: Stay with Bloomberg for special coverage as we break down

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Speaker 3: the numbers and get live expert analysis. That's at eight

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Speaker 3: thirty Wall Street time on Bloomberg Radio and the Bloomberg

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Speaker 3: podcast page on YouTube. Time now for look at some

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Speaker 3: of the other stories making news in New York and

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Speaker 3: around the world, and for that we're joined by Bloomberg's

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Speaker 3: Michael Barr.

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Speaker 5: Michael, Good Morning, Good morning, Karen.

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Speaker 10: Supreme Court Justice Katanjie Brown Jackson denounced what she called

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Speaker 10: relentless attacks on the federal judiciary. Jackson says efforts to

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Speaker 10: intimidate judges we're threatening the constitution and the rule of law.

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Speaker 10: She told a group of federal judges and lawyers at

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Speaker 10: a conference in Puerto Rico last night. The attacks are

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Speaker 10: not random. The Transportation Department is rolling out a new

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Speaker 10: plan to address a shortage of air traffic controllers across

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Speaker 10: the country. The new initiatives include financial incentives to graduates.

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Speaker 10: National Air Traffic Controllers Association President Nick Daniels says staffing

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Speaker 10: at US airports is nearing a thirty year low.

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Speaker 11: This is a commitment to the dedicated men and women

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Speaker 11: keeping our skies safe. It's a real tangible move towards

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Speaker 11: building and sustaining the workforce that America needs.

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Speaker 10: It's part of what caused a domino effect delaying air

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Speaker 10: traffic for several days at Newer Careport. New York Governor

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Speaker 10: Kathy Hockel join MTA officials and law enforcement to highlight

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Speaker 10: a state budget deal to make subways safer for all

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Speaker 10: riders and transit workers. Hochel, speaking from a subway station, says,

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Speaker 10: these major investments increase the presence of law enforcement and

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Speaker 10: make crucial safety upgrades and protective barriers and.

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Speaker 2: May be overstated, but this is the beating heart of

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Speaker 2: this city. This is what sets us apart from all others,

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Speaker 2: gets getting people anywhere.

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Speaker 5: They want to go within minutes. It's extraordinary.

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Speaker 10: The State Department says Secretary Marco Rubio has spoken with

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Speaker 10: senior officials in India and in Pakistan in an effort

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Speaker 10: to cool tensions. Pakistan's ambassador to the US, Risman Sayeed Shaik,

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Speaker 10: stresses that they want peace, but his country will stand

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Speaker 10: up for itself.

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Speaker 9: We need a peaceful neighborhood, and any allegations of that sort,

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Speaker 9: they would need evidence.

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Speaker 10: It comes after a deadly attack on Cashmere. Detailed Army

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Speaker 10: plans for a potential military parade on President Trump's seventy

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Speaker 10: ninth birthday call for more than sixty six hundred soldiers,

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Speaker 10: at least one hundred and fifty vehicles, fifty helicopters, and

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Speaker 10: seven bands. According to the Associated Press, the planning documents

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Speaker 10: represent the army's most recent blueprint for its long planned

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Speaker 10: two hundred and fiftieth birthday festival on the National Mall.

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Speaker 10: June fourteenth, Global News twenty four hours a day and

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Speaker 10: whenever you want it with the Bloomberg News Now, Michael

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Speaker 10: Barrn this is Bloomberg.

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Speaker 5: Karen.

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Speaker 3: All right, Michael barr thank you time now for the

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Speaker 3: Bloomberg Sports Update. Here's John Staneshawer.

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Speaker 1: John, good morning, and we want to care in wild

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Speaker 1: game to and a wild series one where the road

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Speaker 1: team won five games in a row and each of

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Speaker 1: the last four games were decided by no more than

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Speaker 1: three points. Game six of Detroit Knicks had a great start,

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Speaker 1: led by fifteen, but as was so often the case

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Speaker 1: of the series, the Pistons responded. They had the lead

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Speaker 1: by halftime, a strong third quarter, by the next they

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Speaker 1: were backhead by thirteen. Sure enough, it was the Pistons

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Speaker 1: turn a twenty to two run on the fourth quarter

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Speaker 1: a seven point lead, and everyone then expecting there to

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Speaker 1: be a Game seven back in New York, but the

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Speaker 1: Knicks Valley had the ball with the game tie, brusts and.

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Speaker 10: Holding X trying to win till the ends.

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Speaker 11: Romson pucks up the three tag, Jalen Bruson hits the

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Speaker 11: three with.

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Speaker 2: Four point three reding of the Pistons call time out.

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Speaker 1: And Mike Breen saves those double bangs on MSG for

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Speaker 1: really big shots. This one a series winner by Brunson,

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Speaker 1: who scored forty points as the Knicks won one sixteen,

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Speaker 1: one thirteen to take the series for two and advance

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Speaker 1: to play the heavily favored Celtics. Game one Monday, in Boston.

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Speaker 1: Detroit still winless in home playoff game since two thousand

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Speaker 1: and eight. Denver and the Clippers headed into a game seven.

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Speaker 1: LA won one eleven one oh five. Three teams moving

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Speaker 1: around two of the Stanley Cup playoffs. Toronto, Vegas and Edmonton,

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Speaker 1: Colorado beat Dallas. They'll play a game seven. It appears

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Speaker 1: the Rangers have their new coach contract Top said to

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Speaker 1: be advanced with fifty seven year old Mike Sullivan, drafted

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Speaker 1: by the Rangers in nineteen eighty seven, that we never

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Speaker 1: played for them. He got fired by Pittsburgh three days

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Speaker 1: ago after spending a decade coaching the Penguins, winning two

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Speaker 1: Stanley Cups. Just the second two game losing streak for

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Speaker 1: the Mets Arizona one at City Field, four to two too.

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Speaker 1: The two met runs were solo homers by Juan Soto,

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Speaker 1: his first two homers hit at home. Met's played tonight

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Speaker 1: in Saint Louis. Yankees are home for Tampa Bay. Toronto

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Speaker 1: beat the Red Sox for to two. The Nationals won

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Speaker 1: four to two in Philadelphia. John Stashewer Bloomberg Sports count Nathan.

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Speaker 4: Coast to Coast on Bloomberg Radio nationwide on Sirius XM and.

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Speaker 12: Around the world on Bloomberg dot Com and the Bloomberg

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Speaker 12: Business app.

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Speaker 5: This is Bloomberg day Break. Good morning, I'm Nathan Hager.

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Speaker 2: On a morning we may be seeing the first sign

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Speaker 2: of a thaw in the trade freeze between the US

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Speaker 2: and China. With one hundred and forty five sent tariff's

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Speaker 2: still an effect on Chinese exports. The Chinese Commerce Ministry

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Speaker 2: now says it is evaluating the possibility of trade talks

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Speaker 2: after getting messages from the US through relevant parties. John

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Speaker 2: Gong is a former consultant to the Commerce Ministry. We've

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Speaker 2: been waiting for this for a long time. I think

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Speaker 2: the statement that the Ministry of Commerce is evaluating really

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Speaker 2: means that, first of all, there's a go ahead from

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Speaker 2: the very top of the leadership in China. John Gong,

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Speaker 2: now with the University of International Business at Economics, spoke

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Speaker 2: with Bloomberg from Beijing this morning, and we're joined now

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Speaker 2: by Bloomberg Radio and TV anchor Kritty Gupta. So, Critty,

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Speaker 2: how to take this statement from the Commerce ministry that

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Speaker 2: they're thinking about thinking.

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Speaker 5: About talks with the US.

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Speaker 2: It almost feels like how the FED used to talk

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Speaker 2: about thinking about thinking about doing something with Tristrad.

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Speaker 6: It's good morning.

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Speaker 5: Good morning, Nathan.

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Speaker 12: Yeah, it's a tricky one because, of course we know

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Speaker 12: a CCTV, which is media in China associated with the

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Speaker 12: Government of China earlier reported that that was kind of

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Speaker 12: happening earlier this week. So this is a confirmation now

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Speaker 12: from the government itself that this is largely being considered.

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Speaker 12: I think one guest this morning that I think summed

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Speaker 12: it up perfectly, so that this is a drizzle in

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Speaker 12: what's been a drought for weeks, if not months, and

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Speaker 12: I think that's one way to kind of assess perhaps

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Speaker 12: the early though that we're seeing in this terms of relationship.

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Speaker 5: But wishure remind our audience.

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Speaker 12: That this is just what we're hearing from China is

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Speaker 12: coming amid a backdrop of what Donald Trump has repeatedly

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Speaker 12: emphasized it needs to be the first step that comes

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Speaker 12: from China and not from Washington, d C. Whereas he's

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Speaker 12: also said in previous iterations that Shijinpin needs to contact

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Speaker 12: him directly in order to begin talks. Got best and

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Speaker 12: saying something similar, and that's up to Beijing to take

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Speaker 12: the first step to de escalate the dispute, so we

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Speaker 12: will actually see if China does that when they've repeatedly

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Speaker 12: asked for respect when.

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Speaker 5: It comes to taking that step.

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Speaker 2: Well, you had to think Critty that both sides have

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Speaker 2: sort of motivation to get to the table.

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Speaker 5: After the GDP.

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Speaker 2: Read we got here in the US and the shrinking

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Speaker 2: factory activity that we saw to China.

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Speaker 5: They absolutely have motivation.

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Speaker 12: I would argue that the push from the American side

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Speaker 12: may have to do with some of the early readings

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Speaker 12: on the tariff impact that you're already seeing. And I

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Speaker 12: think a great example in just the last twenty four

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Speaker 12: hours of that has been coming out of Apple and Amazon,

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Speaker 12: who are already seeing pressures.

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Speaker 5: That are going to ultimately fall on the consumer.

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Speaker 12: Nathan, if I can go there and drive some numbers

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Speaker 12: around this, sure, Apple is a great example. They're talking

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Speaker 12: about a nine hundred million dollar cost in the current

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Speaker 12: period when it comes to the effect of the planned tariffs,

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Speaker 12: and that's just on one quarter. The SZILL hasn't fully

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Speaker 12: had the full effect. Not to mention what happens when

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Speaker 12: the ninety day reciprocal tariff kind of extension happens as well.

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Speaker 12: Amazon is another great example, really talking about headwinds when

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Speaker 12: it comes to tariff related turmoil, and we know that

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Speaker 12: this week as well, that was something that became a

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Speaker 12: bit of an issue, as you know in Washington, DC

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Speaker 12: as well, where it was reported and then later denied

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Speaker 12: by Amazon that tariff prices may show up in some

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Speaker 12: of the kind of the the number you see at

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Speaker 12: the checkout for example when you buy something from Amazon,

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Speaker 12: something that did of course get the ire of Washington

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Speaker 12: and the Trump administration. Of course, Amazon pulling back on

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Speaker 12: those comments, saying that it was never going to happen.

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Speaker 12: But I think it really highlights the uncertainty that a

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Speaker 12: lot of these corporations are dealing with when it comes

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Speaker 12: to keeping the consumer engaged while also adding pressure to

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Speaker 12: the Trump administration.

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Speaker 2: So just quickly, critty, what's the signal we could be

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Speaker 2: taking from the market with the broader market moving higher

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Speaker 2: while these big tech names are still moving lower on

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Speaker 2: some of these ongoing trade concerns.

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Speaker 12: Well, if you do start to see green on the

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Speaker 12: screen in today, sustain into the weekend, it would be

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Speaker 12: the nine straight winning day for the S and P

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Speaker 12: five hundred. That is the biggest winning streak going back

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Speaker 12: to twenty twenty one, so we'll see if that is

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Speaker 12: ultimately a sentiment change. But again we're going into a weekend.

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Speaker 12: Anything can happen.

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