1 00:00:00,120 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,520 --> 00:00:12,360 Speaker 2: This is the Blue Big dbaqu podcast, available every morning 3 00:00:12,360 --> 00:00:15,440 Speaker 2: on Apple, Spotify or wherever you listen. It's Tuesday, the 4 00:00:15,480 --> 00:00:18,160 Speaker 2: fifteenth of April here in London. I'm Caroline Hipki and. 5 00:00:18,120 --> 00:00:21,200 Speaker 1: I'm Stephen Carroll. Coming up today. Donald Trump targets the 6 00:00:21,320 --> 00:00:25,320 Speaker 1: chips and pharmaceutical industries with new investigations as a likely 7 00:00:25,360 --> 00:00:27,000 Speaker 1: precursor to more tariffs. 8 00:00:27,280 --> 00:00:30,440 Speaker 2: A billionaire toy maker says Trump is probably going to 9 00:00:30,520 --> 00:00:35,080 Speaker 2: steal Christmas as China tariffs have paralyzed his business. 10 00:00:34,800 --> 00:00:37,519 Speaker 1: Plus frozen out Harvard advised to resist Trump, and a 11 00:00:37,600 --> 00:00:40,960 Speaker 1: nine billion dollar funding fight over academic freedoms. 12 00:00:41,320 --> 00:00:43,559 Speaker 2: Let's start with the roundup of our top stories. 13 00:00:43,920 --> 00:00:47,760 Speaker 1: Donald Trump's administration is signaling that more tariffs on semiconductor 14 00:00:47,800 --> 00:00:51,199 Speaker 1: and pharmaceutical imports are likely to be coming soon. The 15 00:00:51,240 --> 00:00:55,160 Speaker 1: White House has initiated trade probes into chip and drug imports, 16 00:00:55,200 --> 00:00:58,560 Speaker 1: in a move that sets the stage for sector specific charges. 17 00:00:58,960 --> 00:01:01,360 Speaker 1: Man deep Saying of bloom Or Intelligence says it's an 18 00:01:01,400 --> 00:01:02,880 Speaker 1: approach that could be widened. 19 00:01:03,440 --> 00:01:06,880 Speaker 3: It looks like with semi's and you know, consumer electronics. 20 00:01:06,880 --> 00:01:09,360 Speaker 3: There will be more to come in terms of tariffs, 21 00:01:09,400 --> 00:01:13,160 Speaker 3: but the goal is pretty clear. They want more reshoring, 22 00:01:13,360 --> 00:01:17,360 Speaker 3: and I feel those sectoral tariffs are probably more effective 23 00:01:17,560 --> 00:01:21,319 Speaker 3: in that because with reciprocal tariffs, you could move from 24 00:01:21,319 --> 00:01:25,479 Speaker 3: country to country depending on wherever the reciprocal tariffs were loaf. 25 00:01:25,600 --> 00:01:28,880 Speaker 3: So from that perspective, sectoral tariffs could be a could 26 00:01:28,959 --> 00:01:30,520 Speaker 3: end up being more effective. 27 00:01:30,560 --> 00:01:33,520 Speaker 1: Man Deep saying, speaking there as President Trump says he 28 00:01:33,600 --> 00:01:37,880 Speaker 1: is exploring possible temporary exemptions to his tariffs on imported 29 00:01:38,000 --> 00:01:41,120 Speaker 1: vehicles and parts to give car companies more time to 30 00:01:41,160 --> 00:01:44,560 Speaker 1: set up manufacturing in the United States well. 31 00:01:44,440 --> 00:01:47,920 Speaker 2: A near daily flow of tariff announcements is adding to 32 00:01:48,000 --> 00:01:51,800 Speaker 2: the confusion for companies and countries trying to navigate President 33 00:01:51,840 --> 00:01:56,560 Speaker 2: Trump's evolving trade policy. The highest so called reciprocal tariffs 34 00:01:56,600 --> 00:01:59,920 Speaker 2: are currently on pools for ninety days, with levees on 35 00:02:00,200 --> 00:02:05,280 Speaker 2: popular electronics also temporarily halted as nations race to negotiate 36 00:02:05,360 --> 00:02:09,480 Speaker 2: bilateral deals. Speaking to Bloomberg's Ann Marie Hauderen, the US 37 00:02:09,639 --> 00:02:13,880 Speaker 2: Trade Secretary Scott Bessend was asked how many of those 38 00:02:13,919 --> 00:02:16,920 Speaker 2: deals he expects to have signed by the end of 39 00:02:16,960 --> 00:02:17,560 Speaker 2: the pause. 40 00:02:18,400 --> 00:02:23,240 Speaker 4: I think there will be advantage to our allies, especially 41 00:02:23,480 --> 00:02:27,280 Speaker 4: in a first mover advantage. You usually the first person 42 00:02:27,320 --> 00:02:30,040 Speaker 4: that makes the deal gets the best deal. So if 43 00:02:30,120 --> 00:02:32,239 Speaker 4: you think we'll be first, it's their choice. 44 00:02:32,600 --> 00:02:35,080 Speaker 5: Is there a handful of countries that you expect to 45 00:02:35,080 --> 00:02:37,359 Speaker 5: have a deal before the ninety days is up. 46 00:02:37,639 --> 00:02:40,960 Speaker 4: Oh, I think there could be numerous countries, and it 47 00:02:41,080 --> 00:02:44,920 Speaker 4: may not be the actual trade document, but we will 48 00:02:44,960 --> 00:02:48,960 Speaker 4: have an agreement in principle and be able to move 49 00:02:49,040 --> 00:02:50,120 Speaker 4: forward from there. 50 00:02:51,200 --> 00:02:55,639 Speaker 2: US Treasury Secretary Scott Besend then his view that this 51 00:02:55,960 --> 00:02:59,720 Speaker 2: is all part of an orderly negotiation process is not 52 00:03:00,040 --> 00:03:04,640 Speaker 2: shared by his predecessor in the Biden administration format. US 53 00:03:04,680 --> 00:03:08,880 Speaker 2: Treasury Secretary Janet Yellen says, the entire process is modeled. 54 00:03:09,600 --> 00:03:15,200 Speaker 6: The objectives unclear, The rationale for the tariffs that have 55 00:03:15,400 --> 00:03:21,280 Speaker 6: been announced really unclear and not at all sensible. Steps 56 00:03:21,360 --> 00:03:27,240 Speaker 6: toward are removing the tariffs, lowering them are positive, but 57 00:03:27,480 --> 00:03:31,079 Speaker 6: we're in a world of tremendous uncertainty. 58 00:03:32,400 --> 00:03:36,000 Speaker 2: Janet Yellen speaking there comes after the CEO of DHL 59 00:03:36,160 --> 00:03:39,680 Speaker 2: told Bloomberg on Monday that both businesses and consumers may 60 00:03:39,760 --> 00:03:43,720 Speaker 2: now quote adopt a wait and see approach before making 61 00:03:43,800 --> 00:03:45,000 Speaker 2: spending decisions. 62 00:03:45,760 --> 00:03:48,720 Speaker 1: Will the White House adds carve outes for certain sectors. 63 00:03:48,800 --> 00:03:51,960 Speaker 1: Others dependent on China have been warning of the effect 64 00:03:52,000 --> 00:03:55,160 Speaker 1: on consumer prices. Plinburgs EU and Pots has more. 65 00:03:55,680 --> 00:03:58,360 Speaker 7: Christmas is nearly here, at least that is if you're 66 00:03:58,400 --> 00:04:01,800 Speaker 7: a toy manufacturer sector plans for its busy season. There's 67 00:04:01,800 --> 00:04:04,440 Speaker 7: a warning over what President Trump's one hundred and forty 68 00:04:04,480 --> 00:04:07,800 Speaker 7: five percent tariffs on Chinese imports will mean for customers. 69 00:04:08,120 --> 00:04:11,000 Speaker 7: Toy billionaire Nick Mowbray's told Bloomberg that the tariffs have 70 00:04:11,120 --> 00:04:14,800 Speaker 7: paralyzed his company. He says as eighty percent of all 71 00:04:14,880 --> 00:04:16,919 Speaker 7: toys are made in China, the firm will need to 72 00:04:16,960 --> 00:04:20,360 Speaker 7: almost double retail prices has to manufacturing in the US. 73 00:04:20,440 --> 00:04:23,680 Speaker 7: He says, the industry cannot simply replicate the deep ecosystem 74 00:04:23,720 --> 00:04:26,800 Speaker 7: and tight supply chains that exist in China. As he 75 00:04:26,839 --> 00:04:29,200 Speaker 7: puts it, Donald Trump is probably going to steal Christmas 76 00:04:29,240 --> 00:04:31,800 Speaker 7: from families and kids in the United States this year. 77 00:04:32,160 --> 00:04:35,279 Speaker 7: In London, I'm youwing Pots, Splinberg Radio Well. 78 00:04:35,120 --> 00:04:38,320 Speaker 2: Returning to our exclusive interview with the US Treasury Secretary, 79 00:04:38,320 --> 00:04:41,479 Speaker 2: It's got bess and played down the bond markets sell off, 80 00:04:41,640 --> 00:04:45,039 Speaker 2: but added that he has a big toolkit to combat 81 00:04:45,120 --> 00:04:49,240 Speaker 2: any crisis. Treasuries saw their biggest weekly slide since two 82 00:04:49,320 --> 00:04:52,160 Speaker 2: thousand and one last week, alongside a decline in the 83 00:04:52,279 --> 00:04:55,839 Speaker 2: US dollar. Bessett was asked if he thought central banks 84 00:04:55,839 --> 00:04:58,839 Speaker 2: and countries were dumping their US assets. 85 00:05:00,120 --> 00:05:03,600 Speaker 4: Have no evidence that it's sovereign. We are still a 86 00:05:03,600 --> 00:05:08,400 Speaker 4: global reserve currency, that we have a strong dollar policy. 87 00:05:08,680 --> 00:05:10,200 Speaker 4: The dollar can go up and down. 88 00:05:10,920 --> 00:05:13,640 Speaker 2: The US Treasury secretary was speaking as several Wall Street 89 00:05:13,680 --> 00:05:16,520 Speaker 2: banks a warning of week foreign demand for US bonds 90 00:05:16,600 --> 00:05:18,320 Speaker 2: due to President Trump's policies. 91 00:05:18,960 --> 00:05:22,719 Speaker 1: The European Union's top trade negotiator mete's US counterparts in Washington, 92 00:05:22,800 --> 00:05:25,039 Speaker 1: d C. As the bloc tries to secure a deal 93 00:05:25,120 --> 00:05:28,520 Speaker 1: on taris. The EU has paused retaliatory measures and the 94 00:05:28,560 --> 00:05:31,240 Speaker 1: hope it can secure further carve outs from the White House, 95 00:05:31,480 --> 00:05:34,400 Speaker 1: which has reduced its key blanket levee to ten percent 96 00:05:34,480 --> 00:05:37,840 Speaker 1: for ninety days. Meanwhile, Bloomberg has learned that Britain has 97 00:05:37,880 --> 00:05:41,039 Speaker 1: privately signaled to the EU that it would be open 98 00:05:41,120 --> 00:05:45,279 Speaker 1: to following some of its rules on food products. The 99 00:05:45,320 --> 00:05:47,839 Speaker 1: discussions come ahead of a key summit where the UK 100 00:05:47,960 --> 00:05:50,520 Speaker 1: hopes to be included in EU defense spending. 101 00:05:51,560 --> 00:05:54,760 Speaker 2: UK households have increased their spending in a sign of 102 00:05:54,760 --> 00:05:59,120 Speaker 2: resilience despite rising bills. The British Retail Consortium's March retail 103 00:05:59,160 --> 00:06:02,680 Speaker 2: sales figures one point one percent high than the previous year. 104 00:06:02,880 --> 00:06:06,560 Speaker 2: Separate data from Berkeley suggests that two thirds of consumers 105 00:06:06,600 --> 00:06:09,359 Speaker 2: now want to buy goods made in Britain, in a 106 00:06:09,400 --> 00:06:13,000 Speaker 2: sign of how the trade war is changing habits. 107 00:06:13,800 --> 00:06:16,040 Speaker 1: And Harvard University has been hit with a two point 108 00:06:16,160 --> 00:06:20,760 Speaker 1: two billion dollar funding freeze after defying President Trump's demands. 109 00:06:21,200 --> 00:06:24,080 Speaker 1: The move came just hours after the institution but out 110 00:06:24,080 --> 00:06:27,839 Speaker 1: of statement saying it wouldn't surrender its independence and capitulate 111 00:06:27,880 --> 00:06:32,599 Speaker 1: to requests ending old diversity, equity and inclusion programs. Ginny 112 00:06:32,680 --> 00:06:36,360 Speaker 1: she Hinzano, political science professor at Iona State, says, the 113 00:06:36,360 --> 00:06:39,480 Speaker 1: prestigious university is well placed to contest the policies. 114 00:06:40,240 --> 00:06:43,919 Speaker 5: If anybody can push back on this, it's going to 115 00:06:43,960 --> 00:06:48,120 Speaker 5: be Harvard, of course, the wealthiest, probably the best, one 116 00:06:48,120 --> 00:06:51,080 Speaker 5: of the best institutions in America, in the world. And 117 00:06:51,200 --> 00:06:54,719 Speaker 5: the reality is is that Harvard is saying we will 118 00:06:54,760 --> 00:06:59,120 Speaker 5: comply with all valid laws. Their problem is this push 119 00:06:59,240 --> 00:07:04,680 Speaker 5: to curtail how Harvard admits students, what faculty teaches is 120 00:07:04,839 --> 00:07:06,880 Speaker 5: a violation of the law. 121 00:07:08,000 --> 00:07:11,440 Speaker 1: Hena State's Genie she Hinseyo speaking there the Trump administration 122 00:07:11,560 --> 00:07:14,400 Speaker 1: last month, it was scrutinizing as much as nine billion 123 00:07:14,480 --> 00:07:17,760 Speaker 1: dollars in federal grants and contracts to Harvard as part 124 00:07:17,760 --> 00:07:22,320 Speaker 1: of its efforts to combat antisemitism on US campuses. Harvard 125 00:07:22,320 --> 00:07:25,040 Speaker 1: has previously acknowledged that it would work with the administration 126 00:07:25,160 --> 00:07:30,520 Speaker 1: to combat antisemitism on campus, such as tightening disciplinary procedures, 127 00:07:30,840 --> 00:07:36,360 Speaker 1: but its president Alan Garber says the latest demands are unacceptable. 128 00:07:36,360 --> 00:07:38,960 Speaker 2: And those are our top stories this morning. Let's get 129 00:07:38,960 --> 00:07:41,840 Speaker 2: to the markets. So Wall Street manager Clinch two days 130 00:07:41,840 --> 00:07:43,880 Speaker 2: of gains. The S and P five hundred a rose 131 00:07:43,960 --> 00:07:46,800 Speaker 2: yesterday by eight tens of one percent, although stop futures 132 00:07:46,880 --> 00:07:50,040 Speaker 2: are pointing lower and in the red this morning. European 133 00:07:50,080 --> 00:07:53,840 Speaker 2: stocks outperformed yesterday, U stock six hundred, rising two point 134 00:07:53,840 --> 00:07:56,800 Speaker 2: seven percent. Again, we're in the red this morning. But 135 00:07:56,840 --> 00:07:59,480 Speaker 2: the other big story was the Treasury's rallied for the 136 00:07:59,520 --> 00:08:03,320 Speaker 2: first in five days. Yields fell over ten basis points 137 00:08:03,360 --> 00:08:06,600 Speaker 2: across the curve, and they're adding to those gains overnight. Meanwhile, 138 00:08:06,600 --> 00:08:10,480 Speaker 2: guilt rose alongside gains in European bonds. The dollar again 139 00:08:10,560 --> 00:08:13,520 Speaker 2: is weakening though a six straight session and we're down 140 00:08:13,560 --> 00:08:15,840 Speaker 2: again this morning. The pound has been one of the 141 00:08:15,880 --> 00:08:20,120 Speaker 2: beneficiaries against the dollar, strengthening to the highest since October. 142 00:08:20,520 --> 00:08:24,320 Speaker 2: Japanese equities this morning are also outperforming. This possibility of 143 00:08:25,000 --> 00:08:28,760 Speaker 2: more tariff relief maybe on the auto manufacturers. That has 144 00:08:28,800 --> 00:08:31,520 Speaker 2: helped the nic K two five up one percent and 145 00:08:31,600 --> 00:08:35,040 Speaker 2: the topics currently up a one point two percent this morning. 146 00:08:35,040 --> 00:08:36,800 Speaker 2: So that's a look at where we are in the markets. 147 00:08:37,320 --> 00:08:38,760 Speaker 1: In a moment, we'll bring you up to date with 148 00:08:38,800 --> 00:08:41,880 Speaker 1: the latest tariff headlines, plus dig into Harvard's dispute with 149 00:08:41,920 --> 00:08:44,880 Speaker 1: the Trump administration. But another story that caught our eye 150 00:08:44,920 --> 00:08:48,600 Speaker 1: this morning. This is the latest analysis of Europe's changing climates. 151 00:08:48,640 --> 00:08:51,600 Speaker 1: So last year was the hottest on record for Europe 152 00:08:51,600 --> 00:08:54,000 Speaker 1: according to the Copernicus Climate Change Service in the World 153 00:08:54,200 --> 00:08:58,080 Speaker 1: Meteorological Organization as well their report finding the extra heat 154 00:08:58,080 --> 00:09:01,160 Speaker 1: and the atmosphere and ocean likely souper charge the storms 155 00:09:01,240 --> 00:09:04,080 Speaker 1: last year, remember Storm Barus causing huge flooding. The flooding 156 00:09:04,080 --> 00:09:07,000 Speaker 1: in Valencia and Spain as well, the worst in more 157 00:09:07,000 --> 00:09:09,920 Speaker 1: than a decade from many parts too. But I found 158 00:09:09,960 --> 00:09:12,440 Speaker 1: it interesting that there's also in this data a divide 159 00:09:12,440 --> 00:09:16,680 Speaker 1: between the trends in Eastern and Western Europe too. Take 160 00:09:16,720 --> 00:09:20,560 Speaker 1: for example, sunshine. The Balkans had hundreds more hours of 161 00:09:20,600 --> 00:09:23,600 Speaker 1: sunshine than is typical last year, but it was much 162 00:09:23,679 --> 00:09:26,760 Speaker 1: cloudier in Western Europe, so France had three hundred and 163 00:09:26,760 --> 00:09:31,000 Speaker 1: fifty fewer hours of sunshine than it normally has as well. Now, 164 00:09:31,000 --> 00:09:33,800 Speaker 1: the effects of a lot of this is in things 165 00:09:33,840 --> 00:09:35,800 Speaker 1: like renewable energy. For example, even if you're looking for 166 00:09:35,840 --> 00:09:37,840 Speaker 1: an upside about what is a very depressing story about 167 00:09:37,840 --> 00:09:41,679 Speaker 1: the changing climate is renewable energy was able to generation 168 00:09:41,760 --> 00:09:44,320 Speaker 1: hit a record because there was more sunshine in parts 169 00:09:44,320 --> 00:09:46,040 Speaker 1: of the world that has more solar panels, but also 170 00:09:46,120 --> 00:09:49,559 Speaker 1: because wind speeds were less strong, which meant that wind 171 00:09:49,640 --> 00:09:52,079 Speaker 1: power was able to generate more because of course, when 172 00:09:52,160 --> 00:09:54,680 Speaker 1: the wind speed goes too high, you can't use wind 173 00:09:54,679 --> 00:09:57,079 Speaker 1: turbines because it becomes unsafe. So the fact that they 174 00:09:57,120 --> 00:10:00,599 Speaker 1: had more moderate or below or average win speeds is 175 00:10:00,640 --> 00:10:02,480 Speaker 1: how they describe it in this report as well, meant 176 00:10:02,480 --> 00:10:05,760 Speaker 1: that generation from wind turbines was able to help too. 177 00:10:06,280 --> 00:10:08,160 Speaker 1: But a warning in here as well about early warning 178 00:10:08,160 --> 00:10:09,319 Speaker 1: systems in particular, and that. 179 00:10:09,240 --> 00:10:11,559 Speaker 2: Word so I saw that. I thought that was really interesting, 180 00:10:11,720 --> 00:10:14,319 Speaker 2: the fact that in Europe, because the weather is becoming 181 00:10:14,360 --> 00:10:16,760 Speaker 2: more extreme, that kind of early warning system, especially for 182 00:10:16,800 --> 00:10:19,680 Speaker 2: things like fires and floods, needs to be better. Anyway, 183 00:10:19,760 --> 00:10:22,080 Speaker 2: you can read the story on the Blueberg Terminal and 184 00:10:22,160 --> 00:10:25,959 Speaker 2: on our website. Joe Wertz been keeping track of the weather, 185 00:10:26,120 --> 00:10:28,760 Speaker 2: extreme weather across Europe and what it means for all 186 00:10:28,800 --> 00:10:31,560 Speaker 2: the different regions in Europe. 187 00:10:32,000 --> 00:10:34,440 Speaker 1: Well, that's turned back to the trade story, and President 188 00:10:34,480 --> 00:10:39,079 Speaker 1: Trump has moved forward on tariffs on imported medicines and semiconductors, 189 00:10:39,080 --> 00:10:42,120 Speaker 1: even as the pullback on tech tariffs over the weekend 190 00:10:42,160 --> 00:10:45,520 Speaker 1: and the abrupt reduction of country specific tariffs for ninety 191 00:10:45,600 --> 00:10:48,679 Speaker 1: days its own confusion and paralysis from any companies. Our 192 00:10:48,720 --> 00:10:51,040 Speaker 1: senior editor Bill Ferries joins us now for more on 193 00:10:51,080 --> 00:10:54,720 Speaker 1: this story. Let's start with these new investigations then, Bill, 194 00:10:54,800 --> 00:10:59,160 Speaker 1: what exactly is the Trump administration looking at for semiconductors 195 00:10:59,160 --> 00:10:59,960 Speaker 1: and pharmaceuticals? 196 00:11:01,160 --> 00:11:03,959 Speaker 8: Yeah, thanks for having me. So, President Trump has ordered 197 00:11:03,960 --> 00:11:07,199 Speaker 8: the Commerce Department to undertake one of these what they 198 00:11:07,240 --> 00:11:10,959 Speaker 8: call Section two thirty two investigations. It kind of has 199 00:11:10,960 --> 00:11:16,680 Speaker 8: a national security implication, looking specifically at semiconductor chips, the 200 00:11:16,800 --> 00:11:22,560 Speaker 8: chip manufacturing machines, and hardware, as well as pharmaceuticals, and 201 00:11:22,600 --> 00:11:26,160 Speaker 8: that basically gives the Commerce Department two hundred and seventy 202 00:11:26,280 --> 00:11:29,960 Speaker 8: days to come up with a report for the President's desk. 203 00:11:30,040 --> 00:11:33,760 Speaker 8: Of course, we're only eighty plus days into his administration. 204 00:11:33,920 --> 00:11:35,599 Speaker 8: I don't think it's going to take two hundred and 205 00:11:35,600 --> 00:11:38,240 Speaker 8: seventy days to get this, but the end result is 206 00:11:38,520 --> 00:11:42,800 Speaker 8: likely to be some sort of recommendation on new sector 207 00:11:42,840 --> 00:11:44,559 Speaker 8: specific tariffs in those areas. 208 00:11:45,440 --> 00:11:49,080 Speaker 2: Meanwhile, President Trump also suggesting that there may be another 209 00:11:49,280 --> 00:11:52,520 Speaker 2: U turn, this time on imported vehicles and car parts. 210 00:11:52,559 --> 00:11:53,520 Speaker 2: So what do we know about that? 211 00:11:54,520 --> 00:11:54,679 Speaker 4: Right? 212 00:11:54,760 --> 00:11:57,840 Speaker 8: So, President Trump floating the idea that this twenty five 213 00:11:57,920 --> 00:12:03,000 Speaker 8: percent tariff on imported vehicles could be eased or suspended, 214 00:12:03,040 --> 00:12:05,559 Speaker 8: we don't have He didn't really go into detail on that, 215 00:12:05,920 --> 00:12:08,880 Speaker 8: but it is another sign that the administration is perhaps 216 00:12:09,160 --> 00:12:14,320 Speaker 8: stepping back from its initial vow, I guess or commitment 217 00:12:14,400 --> 00:12:17,640 Speaker 8: to these twenty five percent tariffs. We know he wants 218 00:12:17,679 --> 00:12:21,000 Speaker 8: to see more manufacturing back in the US, but of 219 00:12:21,040 --> 00:12:22,920 Speaker 8: course it takes a whole lot of time to build 220 00:12:23,000 --> 00:12:26,280 Speaker 8: up that infrastructure in those factories and even a lot 221 00:12:26,280 --> 00:12:29,920 Speaker 8: of the parts for the production that would be required 222 00:12:30,080 --> 00:12:33,040 Speaker 8: have to come from overseas, so we don't have any details. 223 00:12:33,040 --> 00:12:34,880 Speaker 8: We don't know what the timeline is, but he is 224 00:12:34,920 --> 00:12:38,880 Speaker 8: floating the idea and it's benefited I think auto stocks 225 00:12:39,160 --> 00:12:40,040 Speaker 8: in some parts of the world. 226 00:12:40,120 --> 00:12:40,440 Speaker 3: Today. 227 00:12:41,360 --> 00:12:44,600 Speaker 1: We've also on the negotiation front, particularly thinking about the 228 00:12:44,640 --> 00:12:48,280 Speaker 1: tariffs for China, the Trade Representative Jameson Greer floating the 229 00:12:48,320 --> 00:12:51,800 Speaker 1: idea of discussions that could happen at the highest level. 230 00:12:52,760 --> 00:12:56,400 Speaker 8: Yeah, Jamison Greer the USTR saying that he thinks that 231 00:12:56,440 --> 00:12:59,120 Speaker 8: there is interest in talks. The big question here is 232 00:12:59,480 --> 00:13:02,480 Speaker 8: it's almost the who blinks first here. I think the 233 00:13:02,480 --> 00:13:06,199 Speaker 8: Trump administration has signaled repeatedly that they would like Shi 234 00:13:06,320 --> 00:13:09,800 Speaker 8: Jinping and his aides to place a call to them. 235 00:13:10,200 --> 00:13:12,800 Speaker 8: I think on the other side, the Chinese have said 236 00:13:12,800 --> 00:13:15,679 Speaker 8: that they're willing to put up with this trade war 237 00:13:15,720 --> 00:13:18,680 Speaker 8: and even escalated at times if they need to, so 238 00:13:18,880 --> 00:13:22,319 Speaker 8: that it's unlikely that they're going to make that call. 239 00:13:22,600 --> 00:13:25,640 Speaker 8: They did praise some of the pullback and tariffs over 240 00:13:25,679 --> 00:13:28,840 Speaker 8: the weekend, but I think at this point they're willing 241 00:13:28,880 --> 00:13:32,840 Speaker 8: to wait and perhaps even absorb some pain before agreeing 242 00:13:32,880 --> 00:13:33,360 Speaker 8: to doks. 243 00:13:34,120 --> 00:13:37,839 Speaker 2: Well, all of these tariffs do seem now quite tangled, 244 00:13:37,880 --> 00:13:40,720 Speaker 2: and they seem to be leading to confusion. How much 245 00:13:40,760 --> 00:13:43,800 Speaker 2: of this, though, do you think might be about consumer prices? 246 00:13:43,840 --> 00:13:46,560 Speaker 2: How much is the Trump White House paying attention to 247 00:13:46,720 --> 00:13:47,960 Speaker 2: US consumers? 248 00:13:48,520 --> 00:13:50,240 Speaker 8: Well, you know, I think the auto teriff is an 249 00:13:50,280 --> 00:13:53,079 Speaker 8: interesting example. You had a lot of estimates out saying 250 00:13:53,120 --> 00:13:56,560 Speaker 8: that auto prices could go from even for just very 251 00:13:56,600 --> 00:13:59,640 Speaker 8: modest vehicles twenty five hundred to four thousand dollars in 252 00:13:59,600 --> 00:14:03,079 Speaker 8: aditional costs. That's a huge that's a huge burden on 253 00:14:03,520 --> 00:14:06,600 Speaker 8: households in the US. So I think they're looking at that. 254 00:14:06,679 --> 00:14:09,920 Speaker 8: We know when you had some of that bond fallout 255 00:14:10,520 --> 00:14:13,280 Speaker 8: and Tuesday last week, I think we know the President 256 00:14:13,559 --> 00:14:16,880 Speaker 8: said that that factored into his thinking about pulling back 257 00:14:16,920 --> 00:14:20,000 Speaker 8: on the reciprocal tariffs. So I think the market impacts 258 00:14:20,800 --> 00:14:24,400 Speaker 8: and the potential inflation impacts, those things show that the 259 00:14:24,400 --> 00:14:26,200 Speaker 8: president perhaps has a pain point. 260 00:14:27,480 --> 00:14:29,720 Speaker 1: Okay, both varies. Our senior editor, thank you very much 261 00:14:29,760 --> 00:14:31,640 Speaker 1: for joining us with the latest on the many and 262 00:14:31,760 --> 00:14:33,880 Speaker 1: varied aspects of this tariff story. 263 00:14:34,760 --> 00:14:37,840 Speaker 2: Now, the Trump administration has frozen two point two billion 264 00:14:37,880 --> 00:14:41,760 Speaker 2: dollars in multi year grants to Harvard University, the oldest 265 00:14:41,760 --> 00:14:45,520 Speaker 2: and richest US university after it refused to agree to 266 00:14:45,560 --> 00:14:48,520 Speaker 2: a list of government demands. It comes also as federal 267 00:14:48,560 --> 00:14:51,240 Speaker 2: funds and grants have been frozen or canceled for several 268 00:14:51,320 --> 00:14:55,640 Speaker 2: high profile US universities as part of the Trump administration's 269 00:14:55,640 --> 00:15:00,240 Speaker 2: campaign to force changes at elite universities. That's get more 270 00:15:00,240 --> 00:15:02,520 Speaker 2: on this and discussed with Bluebigs Tea added by a 271 00:15:02,520 --> 00:15:05,800 Speaker 2: Good Morning Tiva. There was a question about whether the 272 00:15:05,920 --> 00:15:10,080 Speaker 2: US universities would push back on a Trump administration demands. 273 00:15:10,240 --> 00:15:13,200 Speaker 2: What has the White House demanded of Harvard? 274 00:15:13,960 --> 00:15:17,240 Speaker 9: Well, Caroline, it's interesting that we talk about pushback because 275 00:15:17,280 --> 00:15:20,960 Speaker 9: what's interesting here is that Harvard was previously willing to 276 00:15:21,040 --> 00:15:25,360 Speaker 9: work with the Trump administration that was on combating anti semitism, 277 00:15:25,400 --> 00:15:28,280 Speaker 9: which is actually where this all started. The Trump team 278 00:15:28,440 --> 00:15:32,080 Speaker 9: said that it initially began scrutinizing as much as nine 279 00:15:32,240 --> 00:15:35,760 Speaker 9: billion in its federal grants and contracts to Harvard in 280 00:15:35,800 --> 00:15:40,360 Speaker 9: an effort to root out anti semitism on campus. College 281 00:15:40,360 --> 00:15:45,040 Speaker 9: campuses have experienced incidents of anti semitism, including Harvard and Columbia, 282 00:15:45,040 --> 00:15:48,280 Speaker 9: and in February, the Trump team created a multi agency 283 00:15:48,360 --> 00:15:53,200 Speaker 9: task force to stop that. But now, according to Harvard's president, 284 00:15:53,200 --> 00:15:56,840 Speaker 9: Alan Garbet, the university is being subjected to numerous demands, 285 00:15:56,840 --> 00:16:02,360 Speaker 9: including canceling di programs, change is to admissions and hiring, 286 00:16:02,800 --> 00:16:06,920 Speaker 9: curbing the power of certain students and faculty administrators because 287 00:16:06,960 --> 00:16:09,920 Speaker 9: of their ideological views. So what Alan Garb is saying 288 00:16:10,000 --> 00:16:13,560 Speaker 9: is that this has been an expanded ask and it 289 00:16:13,640 --> 00:16:17,000 Speaker 9: proves that the goal of the Trump administration, according to him, 290 00:16:17,480 --> 00:16:21,480 Speaker 9: isn't simply about fighting anti Semitism. He thinks it's more 291 00:16:21,520 --> 00:16:25,040 Speaker 9: about a power struggle for control, as you mentioned, of 292 00:16:25,040 --> 00:16:28,360 Speaker 9: one of the world's most powerful institutions in Harvard. 293 00:16:29,280 --> 00:16:34,080 Speaker 1: So how have Harvard and other institutions chosen to respond 294 00:16:34,120 --> 00:16:36,359 Speaker 1: to this from the Trump administration. 295 00:16:36,880 --> 00:16:39,720 Speaker 9: Well, in Harvard's case, they've hit back pretty hard. The 296 00:16:39,760 --> 00:16:43,040 Speaker 9: school's president, Alan Garber, posted a statement on the website 297 00:16:43,080 --> 00:16:46,880 Speaker 9: and he said the university won't surrender its independence or 298 00:16:46,960 --> 00:16:50,760 Speaker 9: constitutional rights. So they're taking this pretty seriously. It looks 299 00:16:50,840 --> 00:16:53,880 Speaker 9: like they are planning to take the financial hits at 300 00:16:53,920 --> 00:16:57,080 Speaker 9: the moment. Harvard is a definitely better place than some 301 00:16:57,120 --> 00:16:59,520 Speaker 9: of its other peers to do that. Their endowment sits 302 00:16:59,560 --> 00:17:03,840 Speaker 9: at around fifty three billion dollars. But what's interesting too 303 00:17:03,880 --> 00:17:07,280 Speaker 9: is that their statement doesn't just talk about Harvard. It's 304 00:17:07,320 --> 00:17:10,800 Speaker 9: definitely not the only US college that has faced demands 305 00:17:10,840 --> 00:17:16,040 Speaker 9: from this administration. Actually, Columbia University another prominent example. They 306 00:17:16,080 --> 00:17:20,239 Speaker 9: handled it a bit differently. The Trump administration threatened to 307 00:17:20,440 --> 00:17:24,120 Speaker 9: freeze four hundred million dollars of their federal funding, and 308 00:17:24,280 --> 00:17:27,199 Speaker 9: in response to school actually agreed to do things like 309 00:17:27,280 --> 00:17:32,240 Speaker 9: band masks, expand campus police powers, and appoint a senior 310 00:17:32,280 --> 00:17:35,160 Speaker 9: member of staff to oversee the Middle East, South Asian 311 00:17:35,200 --> 00:17:38,800 Speaker 9: and African Studies department. Harvard has done the opposite here. 312 00:17:39,240 --> 00:17:43,280 Speaker 9: They've used this opportunity to make clear that they don't 313 00:17:43,320 --> 00:17:46,679 Speaker 9: think itself, or any other private university for that matter, 314 00:17:46,840 --> 00:17:50,200 Speaker 9: as its lawyers say in a letter, should allow itself 315 00:17:50,320 --> 00:17:54,159 Speaker 9: to be taken over or influenced by the federal government. 316 00:17:54,200 --> 00:17:56,720 Speaker 9: So they're taking a defiant stance in response to this. 317 00:17:57,480 --> 00:18:00,439 Speaker 2: It does seem to be quite a deep ideological battle 318 00:18:00,440 --> 00:18:02,879 Speaker 2: in the US, and many people see that sort of 319 00:18:04,119 --> 00:18:08,040 Speaker 2: having influence or understanding what is going on on university 320 00:18:08,040 --> 00:18:11,160 Speaker 2: campuses is quite crucial to the fabric of the US 321 00:18:11,240 --> 00:18:13,040 Speaker 2: or really any country well. 322 00:18:13,080 --> 00:18:15,880 Speaker 9: Definitely, and actually looking back at some of the demands, 323 00:18:15,960 --> 00:18:19,159 Speaker 9: it's easy to see why some may think this is 324 00:18:19,200 --> 00:18:23,439 Speaker 9: about more than just university students. For their parts, the 325 00:18:23,600 --> 00:18:27,160 Speaker 9: Trump administration actually say that Harvard's response to their request 326 00:18:27,760 --> 00:18:33,000 Speaker 9: convey a troubling entitlement mindset and that federal funding essentially 327 00:18:33,080 --> 00:18:36,680 Speaker 9: should come at the price of upholding what they're referring 328 00:18:36,720 --> 00:18:39,879 Speaker 9: to as civil rights laws. So in the eyes of 329 00:18:40,240 --> 00:18:43,359 Speaker 9: the government, perhaps it is also about more than just 330 00:18:43,400 --> 00:18:48,160 Speaker 9: the university. But speaking about the implications of this discussion 331 00:18:48,200 --> 00:18:51,639 Speaker 9: for wider society, of course, places like Harvard and Columbia 332 00:18:51,760 --> 00:18:55,240 Speaker 9: some of the most important educational institutions in the world, 333 00:18:55,320 --> 00:18:59,440 Speaker 9: and they are emblematic of intellectual freedom. Larry Kramer, who 334 00:18:59,480 --> 00:19:02,560 Speaker 9: is the vice chancellor of the London School of Economics 335 00:19:02,640 --> 00:19:06,080 Speaker 9: but formerly the dean of Stanford Law School in the US, 336 00:19:06,119 --> 00:19:08,280 Speaker 9: spoke to US a couple of weeks ago about the situation. 337 00:19:08,760 --> 00:19:11,480 Speaker 9: Here's what he thinks will happen and the whyde reaching 338 00:19:11,520 --> 00:19:12,720 Speaker 9: effect that could take place. 339 00:19:13,600 --> 00:19:18,639 Speaker 10: US has long haired the largest dominant university system in 340 00:19:18,680 --> 00:19:22,720 Speaker 10: the world, and the effective dismantling of that and the 341 00:19:22,760 --> 00:19:27,720 Speaker 10: effective effort to really crush some of the best universities 342 00:19:27,720 --> 00:19:30,680 Speaker 10: in the world will have just you know, collateral effects 343 00:19:30,680 --> 00:19:33,679 Speaker 10: of all sorts that are hard to specify, but you 344 00:19:33,760 --> 00:19:36,280 Speaker 10: will be unfolding over the next couple of years. 345 00:19:36,800 --> 00:19:39,919 Speaker 9: So Larry Kramer there from the London School of Economics 346 00:19:39,960 --> 00:19:42,960 Speaker 9: saying this is about more than just the control of 347 00:19:43,000 --> 00:19:45,879 Speaker 9: elite US universities, but certainly a story that's likely to 348 00:19:45,920 --> 00:19:47,119 Speaker 9: develop in the coming weeks. 349 00:19:48,000 --> 00:19:50,720 Speaker 1: This is Bloomberg Daybreak Europe. You're morning brief on the 350 00:19:50,760 --> 00:19:53,840 Speaker 1: stories making news from London to Wall Streets and beyond. 351 00:19:54,119 --> 00:19:57,320 Speaker 2: Look for us on your podcast speed every morning, on Apple, 352 00:19:57,440 --> 00:19:59,920 Speaker 2: Spotify and anywhere else you get your podcast. 353 00:20:00,160 --> 00:20:03,200 Speaker 1: You can also listen live each morning on London DAB Radio, 354 00:20:03,240 --> 00:20:05,960 Speaker 1: the Bloomberg Business app, and Bloomberg dot Com. 355 00:20:05,960 --> 00:20:08,760 Speaker 2: Our flagship New York station is also available on your 356 00:20:08,760 --> 00:20:13,479 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 357 00:20:13,720 --> 00:20:15,479 Speaker 1: I'm Caroline Hepka and I'm Stephen. 358 00:20:15,520 --> 00:20:15,760 Speaker 7: Carol. 359 00:20:15,840 --> 00:20:18,199 Speaker 1: Join us again tomorrow morning for all the news you 360 00:20:18,240 --> 00:20:20,920 Speaker 1: need to start your day right here on Bloomberg day 361 00:20:20,920 --> 00:20:23,760 Speaker 1: Break Europe.