Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 3: stories we're following today.
Speaker 2: Karen, the move we're seeing in markets this morning comes
Speaker 2: on optimism that trade tensions between the US and China
Speaker 2: may be easing. China says it is assessing the possibility
Speaker 2: of trade talks with the US. It is the first
Speaker 2: sign since President Donald Trump hiked tariffs last month that
Speaker 2: negotiations could begin between the two sides. We get more
Speaker 2: from Bloomberg New senior editor Bill Ferries.
Speaker 4: It's really hard to know what's happening here or if
Speaker 4: it's the market really looking for any sign of a
Speaker 4: potential change, any sign that one side or both sides
Speaker 4: are simultaneously starting to blink here. I mean, the China's
Speaker 4: Commerce Ministry said on Friday that it noted the willingness
Speaker 4: of some senior US officials to talk about harriffs. On
Speaker 4: the other hand, you've had the US saying that they
Speaker 4: want China to reach out, that China can't sustain these
Speaker 4: tariffs for very long. This latest statement doesn't seem that
Speaker 4: different on the Chinese side, but it is being taken
Speaker 4: as perhaps an ALI branch that could allow both sides
Speaker 4: to maybe save some face and start talks, even if
Speaker 4: that's at.
Speaker 2: A lower level and Bloomberg's Bill Ferry says, the economic
Speaker 2: fallout from the confrontation maybe giving new momentum to efforts
Speaker 2: to bring both sides to the table. The US economy
Speaker 2: contracted at the start of the year, China's factory activity
Speaker 2: slipped into its worst contraction since December of twenty twenty three.
Speaker 5: Let's turn to politics now, Nathan.
Speaker 3: The White House is set to release its first budget
Speaker 3: request of President Trump's second term, the so called the
Speaker 3: Skinny Budget. We'll call for five hundred and fifty seven
Speaker 3: billion dollars in non defense spending. That's a nearly twenty
Speaker 3: three percent drop from current levels. National security spending, meanwhile,
Speaker 3: would rise to a record one point zero one trillion
Speaker 3: dollars thirteen percent increase. Administration officials say the budget includes
Speaker 3: significant cuts to environmental programs, foreign aid, the Education Department,
Speaker 3: National Institutes of Health and Housing, and urban development. The
Speaker 3: military boost would pay for the Golden Dome missile defense,
Speaker 3: as well as shipbuilding, border security, and a military pay raise.
Speaker 3: It's not clear how the budget request would handle entitlements.
Speaker 3: They represent the bulk of federal spending.
Speaker 2: And Karen, the president has signed an executive order to
Speaker 2: end federal funding of public broadcasters NPR and PBS. Bloomberg's
Speaker 2: John Tucker joins us with that part of the story.
Speaker 6: John and Nathan, the most shouldn't really come as a surprise.
Speaker 6: Back in March, President Trump was asked if he had
Speaker 6: any plans to yank funding for NPR and PBS.
Speaker 5: I would love to do that.
Speaker 3: I think it's very unfair.
Speaker 5: It's been very biased. The whole group, I mean the
Speaker 5: whole group of them.
Speaker 6: Or Republicans have long sought to eliminate funding for NPR
Speaker 6: and PBS, and President Trump has repeatedly criticized press coverage
Speaker 6: of his administer. Both public media outlets do receive a
Speaker 6: small portion of their funding from the federal sources. PBS
Speaker 6: is set to take the larger hit. The broadcaster relies
Speaker 6: on federal funds for about sixteen percent of its overall budget.
Speaker 6: You know you yorkcome, John Tucker, Bloomberg Radio.
Speaker 5: All right, John, thank you a while.
Speaker 3: The other major story out of Washington, as a shake
Speaker 3: up in the West wing, President Trump is naming his
Speaker 3: national Security Advisor Mike Waltz to be the next UN ambassador.
Speaker 3: Back in March, Waltz admitted he mistakenly added Atlantic Editor
Speaker 3: Jeffrey Goldenberg to a signal group chat about attack plans
Speaker 3: in Yemen. Now, if confirmed by the Senate, he'll be
Speaker 3: moving out of the Oval Office to UN headquarters in
Speaker 3: New York, began more from Bloomberg Washington reporter Tyler Kendall.
Speaker 7: In terms of a promotion versus a demotion, the National
Speaker 7: Security Advisor is in the West Wing. He sees the
Speaker 7: President every day. He gets a security detail much like
Speaker 7: the chief of Staff that other members of the administration
Speaker 7: don't necessarily get. He also has been at the forefront
Speaker 7: of most of, if not all, of these foreign policy negotiations,
Speaker 7: particularly when it comes to Ukraine and Russia. As the
Speaker 7: administration tries to push forward that they are making progress.
Speaker 7: They're announcing that a critical minerals agreement just the other day.
Speaker 7: He was the one that went to Saudi Arabia to
Speaker 7: kick off those talks.
Speaker 3: And that's Bloomberg's Tyler Kendall. The president says Secretary of
Speaker 3: State Marco Rubio will serve as interim National Security Advisor
Speaker 3: Rubio is also leading the US Agency for International Development
Speaker 3: after it was targeted for cuts, and he's also acting
Speaker 3: head of the National Archives and Karen.
Speaker 2: President Trump is putting new pressure on Iran. He says
Speaker 2: he will impose secondary sanctions on nations or companies that
Speaker 2: buy Iran's oil. The president posted on social media quote,
Speaker 2: they will not be allowed to do business with the
Speaker 2: United States of America in any way, shape or form.
Speaker 2: Negotiations over Iran's nuclear program hit a wall this week.
Speaker 2: A meeting that had been set for tomorrow was postponed,
Speaker 2: and US officials said they never agreed to take part
Speaker 2: in the latest stround of talks in the first place.
Speaker 3: Return to the markets now, Nathan, in futures are high.
Speaker 3: You're following eight straight days of gains for the S
Speaker 3: and P five hundred. As you mentioned earlier, there is
Speaker 3: optimism the US and China will begin trade negotiations. Two
Speaker 3: stocks that are not participating in the euphoria are Apple
Speaker 3: and Amazon. Shares of Apple are down three percent. The
Speaker 3: iphonemaker's earnings report failed to soothe investor concerns about its
Speaker 3: biggest challenges, including escalating tariff costs and a slowdown in
Speaker 3: China CEO Tim Cooks as sales from China fell more
Speaker 3: than expected two point three percent to sixteen billion dollars
Speaker 3: in the second quarter. Analysts say that shortfall is an
Speaker 3: ominous sign for what was once a growth market.
Speaker 2: And here and shares of Amazon are down more than
Speaker 2: two percent. The world's largest online retailer says it's bracing
Speaker 2: for a tougher business climate due to tariffs and economic turmoil.
Speaker 2: Amazon CEO and the jazz highlighted at the guaranty.
Speaker 8: Obviously, none of us know exactly where tariffs will settle
Speaker 8: or when.
Speaker 5: We haven't seen any attenuation of demand yet.
Speaker 8: To some extent, we've seen some heightened buying in certain
Speaker 8: categories that may indicate stalking up in advance of any
Speaker 8: potential tariff impact.
Speaker 2: And despite the headwinds, Amazon CEO Andy Jassey reported a
Speaker 2: nine percent increase in first quarter sales.
Speaker 3: In addition to earnings, Nathan, Investors will have a key
Speaker 3: economic report to look forward to, the April Jobs report.
Speaker 3: We get a preview with Bloomberg's Michael McKee.
Speaker 9: The jobs report may be the most important economic indicator
Speaker 9: going forward, but maybe not this one. The President's big
Speaker 9: tariff announcements came just ahead of the April survey week,
Speaker 9: so companies likely didn't have a lot of time to react.
Speaker 9: We may see some reduction in federal government employment, but
Speaker 9: for the most part, the April figures should suggest private
Speaker 9: sector hiring is on hold. Also, the FED watch is
Speaker 9: the unemployment rate rather than overall job creation, and unemployment
Speaker 9: is forecast to hold steady. Michael McKee, Bloomberg Radio.
Speaker 5: All right, Mike, thanks well.
Speaker 3: Stay with Bloomberg for special coverage as we break down
Speaker 3: the numbers and get live expert analysis. That's at eight
Speaker 3: thirty Wall Street time on Bloomberg Radio and the Bloomberg
Speaker 3: podcast page on YouTube. Time now for look at some
Speaker 3: of the other stories making news in New York and
Speaker 3: around the world, and for that we're joined by Bloomberg's
Speaker 3: Michael Barr.
Speaker 5: Michael, Good Morning, Good morning, Karen.
Speaker 10: Supreme Court Justice Katanjie Brown Jackson denounced what she called
Speaker 10: relentless attacks on the federal judiciary. Jackson says efforts to
Speaker 10: intimidate judges we're threatening the constitution and the rule of law.
Speaker 10: She told a group of federal judges and lawyers at
Speaker 10: a conference in Puerto Rico last night. The attacks are
Speaker 10: not random. The Transportation Department is rolling out a new
Speaker 10: plan to address a shortage of air traffic controllers across
Speaker 10: the country. The new initiatives include financial incentives to graduates.
Speaker 10: National Air Traffic Controllers Association President Nick Daniels says staffing
Speaker 10: at US airports is nearing a thirty year low.
Speaker 11: This is a commitment to the dedicated men and women
Speaker 11: keeping our skies safe. It's a real tangible move towards
Speaker 11: building and sustaining the workforce that America needs.
Speaker 10: It's part of what caused a domino effect delaying air
Speaker 10: traffic for several days at Newer Careport. New York Governor
Speaker 10: Kathy Hockel join MTA officials and law enforcement to highlight
Speaker 10: a state budget deal to make subways safer for all
Speaker 10: riders and transit workers. Hochel, speaking from a subway station, says,
Speaker 10: these major investments increase the presence of law enforcement and
Speaker 10: make crucial safety upgrades and protective barriers and.
Speaker 2: May be overstated, but this is the beating heart of
Speaker 2: this city. This is what sets us apart from all others,
Speaker 2: gets getting people anywhere.
Speaker 5: They want to go within minutes. It's extraordinary.
Speaker 10: The State Department says Secretary Marco Rubio has spoken with
Speaker 10: senior officials in India and in Pakistan in an effort
Speaker 10: to cool tensions. Pakistan's ambassador to the US, Risman Sayeed Shaik,
Speaker 10: stresses that they want peace, but his country will stand
Speaker 10: up for itself.
Speaker 9: We need a peaceful neighborhood, and any allegations of that sort,
Speaker 9: they would need evidence.
Speaker 10: It comes after a deadly attack on Cashmere. Detailed Army
Speaker 10: plans for a potential military parade on President Trump's seventy
Speaker 10: ninth birthday call for more than sixty six hundred soldiers,
Speaker 10: at least one hundred and fifty vehicles, fifty helicopters, and
Speaker 10: seven bands. According to the Associated Press, the planning documents
Speaker 10: represent the army's most recent blueprint for its long planned
Speaker 10: two hundred and fiftieth birthday festival on the National Mall.
Speaker 10: June fourteenth, Global News twenty four hours a day and
Speaker 10: whenever you want it with the Bloomberg News Now, Michael
Speaker 10: Barrn this is Bloomberg.
Speaker 5: Karen.
Speaker 3: All right, Michael barr thank you time now for the
Speaker 3: Bloomberg Sports Update. Here's John Staneshawer.
Speaker 1: John, good morning, and we want to care in wild
Speaker 1: game to and a wild series one where the road
Speaker 1: team won five games in a row and each of
Speaker 1: the last four games were decided by no more than
Speaker 1: three points. Game six of Detroit Knicks had a great start,
Speaker 1: led by fifteen, but as was so often the case
Speaker 1: of the series, the Pistons responded. They had the lead
Speaker 1: by halftime, a strong third quarter, by the next they
Speaker 1: were backhead by thirteen. Sure enough, it was the Pistons
Speaker 1: turn a twenty to two run on the fourth quarter
Speaker 1: a seven point lead, and everyone then expecting there to
Speaker 1: be a Game seven back in New York, but the
Speaker 1: Knicks Valley had the ball with the game tie, brusts and.
Speaker 10: Holding X trying to win till the ends.
Speaker 11: Romson pucks up the three tag, Jalen Bruson hits the
Speaker 11: three with.
Speaker 2: Four point three reding of the Pistons call time out.
Speaker 1: And Mike Breen saves those double bangs on MSG for
Speaker 1: really big shots. This one a series winner by Brunson,
Speaker 1: who scored forty points as the Knicks won one sixteen,
Speaker 1: one thirteen to take the series for two and advance
Speaker 1: to play the heavily favored Celtics. Game one Monday, in Boston.
Speaker 1: Detroit still winless in home playoff game since two thousand
Speaker 1: and eight. Denver and the Clippers headed into a game seven.
Speaker 1: LA won one eleven one oh five. Three teams moving
Speaker 1: around two of the Stanley Cup playoffs. Toronto, Vegas and Edmonton,
Speaker 1: Colorado beat Dallas. They'll play a game seven. It appears
Speaker 1: the Rangers have their new coach contract Top said to
Speaker 1: be advanced with fifty seven year old Mike Sullivan, drafted
Speaker 1: by the Rangers in nineteen eighty seven, that we never
Speaker 1: played for them. He got fired by Pittsburgh three days
Speaker 1: ago after spending a decade coaching the Penguins, winning two
Speaker 1: Stanley Cups. Just the second two game losing streak for
Speaker 1: the Mets Arizona one at City Field, four to two too.
Speaker 1: The two met runs were solo homers by Juan Soto,
Speaker 1: his first two homers hit at home. Met's played tonight
Speaker 1: in Saint Louis. Yankees are home for Tampa Bay. Toronto
Speaker 1: beat the Red Sox for to two. The Nationals won
Speaker 1: four to two in Philadelphia. John Stashewer Bloomberg Sports count Nathan.
Speaker 4: Coast to Coast on Bloomberg Radio nationwide on Sirius XM and.
Speaker 12: Around the world on Bloomberg dot Com and the Bloomberg
Speaker 12: Business app.
Speaker 5: This is Bloomberg day Break. Good morning, I'm Nathan Hager.
Speaker 2: On a morning we may be seeing the first sign
Speaker 2: of a thaw in the trade freeze between the US
Speaker 2: and China. With one hundred and forty five sent tariff's
Speaker 2: still an effect on Chinese exports. The Chinese Commerce Ministry
Speaker 2: now says it is evaluating the possibility of trade talks
Speaker 2: after getting messages from the US through relevant parties. John
Speaker 2: Gong is a former consultant to the Commerce Ministry. We've
Speaker 2: been waiting for this for a long time. I think
Speaker 2: the statement that the Ministry of Commerce is evaluating really
Speaker 2: means that, first of all, there's a go ahead from
Speaker 2: the very top of the leadership in China. John Gong,
Speaker 2: now with the University of International Business at Economics, spoke
Speaker 2: with Bloomberg from Beijing this morning, and we're joined now
Speaker 2: by Bloomberg Radio and TV anchor Kritty Gupta. So, Critty,
Speaker 2: how to take this statement from the Commerce ministry that
Speaker 2: they're thinking about thinking.
Speaker 5: About talks with the US.
Speaker 2: It almost feels like how the FED used to talk
Speaker 2: about thinking about thinking about doing something with Tristrad.
Speaker 6: It's good morning.
Speaker 5: Good morning, Nathan.
Speaker 12: Yeah, it's a tricky one because, of course we know
Speaker 12: a CCTV, which is media in China associated with the
Speaker 12: Government of China earlier reported that that was kind of
Speaker 12: happening earlier this week. So this is a confirmation now
Speaker 12: from the government itself that this is largely being considered.
Speaker 12: I think one guest this morning that I think summed
Speaker 12: it up perfectly, so that this is a drizzle in
Speaker 12: what's been a drought for weeks, if not months, and
Speaker 12: I think that's one way to kind of assess perhaps
Speaker 12: the early though that we're seeing in this terms of relationship.
Speaker 5: But wishure remind our audience.
Speaker 12: That this is just what we're hearing from China is
Speaker 12: coming amid a backdrop of what Donald Trump has repeatedly
Speaker 12: emphasized it needs to be the first step that comes
Speaker 12: from China and not from Washington, d C. Whereas he's
Speaker 12: also said in previous iterations that Shijinpin needs to contact
Speaker 12: him directly in order to begin talks. Got best and
Speaker 12: saying something similar, and that's up to Beijing to take
Speaker 12: the first step to de escalate the dispute, so we
Speaker 12: will actually see if China does that when they've repeatedly
Speaker 12: asked for respect when.
Speaker 5: It comes to taking that step.
Speaker 2: Well, you had to think Critty that both sides have
Speaker 2: sort of motivation to get to the table.
Speaker 5: After the GDP.
Speaker 2: Read we got here in the US and the shrinking
Speaker 2: factory activity that we saw to China.
Speaker 5: They absolutely have motivation.
Speaker 12: I would argue that the push from the American side
Speaker 12: may have to do with some of the early readings
Speaker 12: on the tariff impact that you're already seeing. And I
Speaker 12: think a great example in just the last twenty four
Speaker 12: hours of that has been coming out of Apple and Amazon,
Speaker 12: who are already seeing pressures.
Speaker 5: That are going to ultimately fall on the consumer.
Speaker 12: Nathan, if I can go there and drive some numbers
Speaker 12: around this, sure, Apple is a great example. They're talking
Speaker 12: about a nine hundred million dollar cost in the current
Speaker 12: period when it comes to the effect of the planned tariffs,
Speaker 12: and that's just on one quarter. The SZILL hasn't fully
Speaker 12: had the full effect. Not to mention what happens when
Speaker 12: the ninety day reciprocal tariff kind of extension happens as well.
Speaker 12: Amazon is another great example, really talking about headwinds when
Speaker 12: it comes to tariff related turmoil, and we know that
Speaker 12: this week as well, that was something that became a
Speaker 12: bit of an issue, as you know in Washington, DC
Speaker 12: as well, where it was reported and then later denied
Speaker 12: by Amazon that tariff prices may show up in some
Speaker 12: of the kind of the the number you see at
Speaker 12: the checkout for example when you buy something from Amazon,
Speaker 12: something that did of course get the ire of Washington
Speaker 12: and the Trump administration. Of course, Amazon pulling back on
Speaker 12: those comments, saying that it was never going to happen.
Speaker 12: But I think it really highlights the uncertainty that a
Speaker 12: lot of these corporations are dealing with when it comes
Speaker 12: to keeping the consumer engaged while also adding pressure to
Speaker 12: the Trump administration.
Speaker 2: So just quickly, critty, what's the signal we could be
Speaker 2: taking from the market with the broader market moving higher
Speaker 2: while these big tech names are still moving lower on
Speaker 2: some of these ongoing trade concerns.
Speaker 12: Well, if you do start to see green on the
Speaker 12: screen in today, sustain into the weekend, it would be
Speaker 12: the nine straight winning day for the S and P
Speaker 12: five hundred. That is the biggest winning streak going back
Speaker 12: to twenty twenty one, so we'll see if that is
Speaker 12: ultimately a sentiment change. But again we're going into a weekend.
Speaker 12: Anything can happen.
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