WEBVTT - China Says U.S. Should Revoke Tariffs; Trump Approval Rating Drops

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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

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

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<v Speaker 3>Can we begin with the latest developments in the trade war.

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<v Speaker 3>This morning, China demanded that the US revoke all unilateral tariffs.

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<v Speaker 3>Spokesman for the Chinese Ministry of Commerce says there are

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<v Speaker 3>no talks on reaching a trade deal. This comes less

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<v Speaker 3>than twenty four hours after President Trump said he would

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<v Speaker 3>be willing to substantially pair back tariffs on China.

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<v Speaker 4>We're dealing with a lot of countries right now, and

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<v Speaker 4>it could be with China. But maybe we'll make a special,

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<v Speaker 4>you know, a deal, and we'll see what it will be.

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<v Speaker 4>Right now, it's one hundred and forty five percent.

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<v Speaker 5>That's very high. It got there because of the fentanyl.

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<v Speaker 4>They're sending massive amounts of fentanyl into our country.

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<v Speaker 3>President Trump said he could announce tariff rates for countries,

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<v Speaker 3>including China, over the next two to three weeks.

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<v Speaker 2>Well Nathan stocks are coming off back to back gains

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<v Speaker 2>after President Trump eased off on two of his frequent

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<v Speaker 2>punching bags, China and Jerome Powell, and sources say Trump

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<v Speaker 2>turned down his aggressive rhetoric a day after meeting with

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<v Speaker 2>executives from Walmart, Home Depot and Target, who said important

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<v Speaker 2>taxes could disrupt supply chains and raise the prices of goods. Meanwhile,

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<v Speaker 2>Citadel founder Ken Griffiths said the trade war has disrupted

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<v Speaker 2>the ability of business leaders to focus on long term growth.

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<v Speaker 6>All of us were really looking forward to four years

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<v Speaker 6>of having a chance to really grow our businesses, and

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<v Speaker 6>unfortunately the trade war, which has devolved into a nonsensical place,

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<v Speaker 6>means that we're spending time now thinking about supply chains,

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<v Speaker 6>thinking about strategically how we're going to source goods around

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<v Speaker 6>the world. And I'll tell you what's not going to happen,

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<v Speaker 6>because people are not going to raise the build manufactured

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<v Speaker 6>in America.

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<v Speaker 2>Citadel founder Ken Griffin made the comments at the Semaphore

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<v Speaker 2>World Economy Summit.

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<v Speaker 7>Thank Karen.

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<v Speaker 3>The Trump administration and is considering whether to reduce certain

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<v Speaker 3>tariffs targeting the auto industry. We get the very latest

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<v Speaker 3>on that now with Bloomberg's John Tucker.

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<v Speaker 8>John and Nathan Discussions or underway after auto executives where

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<v Speaker 8>in taris would deal as severe blow to profits and jobs.

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<v Speaker 8>Sources tell us one proposal would spare automobiles and parts

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<v Speaker 8>already subject to taris from facing additional duties from steel

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<v Speaker 8>and aluminum imports. Another option being studied would fully exempt

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<v Speaker 8>to auto parts that comply with the US Mexico Canada

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<v Speaker 8>Trade Pact. But President Trump's tarrent policies often changed quickly,

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<v Speaker 8>so nobody knows for sure. In the Oval Office he

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<v Speaker 8>as today, Trump was asked if he's considering changes to

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<v Speaker 8>auto terrace and indicated he was not well, also suggesting

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<v Speaker 8>he might even increase levies on the Canadian auto sector.

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<v Speaker 8>And meantime, President Trump plans to mark one hundred days

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<v Speaker 8>in office by visiting the carmaking hub of Macomb County,

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<v Speaker 8>Michigan that's home to facilities tied to General Motors and

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<v Speaker 8>Stilantis in New York. I'm John Tucker, Bloomberg Radio.

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<v Speaker 2>All right, John, thank you. Well. There's at least one

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<v Speaker 2>company saying tariffs will benefit its business going forward. Whirlpool

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<v Speaker 2>says the long term impact of tariffs will benefit its

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<v Speaker 2>position in the US home appliance market. We spoke with

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<v Speaker 2>Whirlpool CEO Mark Bitzer.

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<v Speaker 9>No matter how you look at it, we're structuring a

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<v Speaker 9>net winner of a tariff now, there's always two sides

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<v Speaker 9>of equation. In a short term, there are some what

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<v Speaker 9>I would call manageable headwinds in the form of higher

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<v Speaker 9>component costs. We also saw quite a bit of loading

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<v Speaker 9>by competitors into the industry. But the long term, in

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<v Speaker 9>particular one mid term particular, once week tariffs fully kick in,

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<v Speaker 9>we are net winner in this environment.

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<v Speaker 2>And world pool of CEO Mark Bitzer maintained the refrigerator

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<v Speaker 2>makers full year forecast.

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<v Speaker 3>Well, Karen, Controversies over tariffs could be taking a slice

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<v Speaker 3>out of President Trump's approval rating. The New York Times

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<v Speaker 3>is reporting the rating has sunk to about forty five percent.

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<v Speaker 3>That's down from fifty two percent one week after the

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<v Speaker 3>president took office.

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<v Speaker 2>Well, now, Nathan, let's get the latest on the war

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<v Speaker 2>in Ukraine. Russia launched a barrage of missiles and drones

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<v Speaker 2>on eight regions over including the capital Kief. At least

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<v Speaker 2>nine people were killed more than seventy others hurt. The

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<v Speaker 2>latest assault came hours after President Trump accused Ukrainian leader

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<v Speaker 2>of Vladimir Zelenski of prolonging the war.

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<v Speaker 5>I think we have a deal with Russia.

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<v Speaker 4>We have to get a deal with Zelensky, and I

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<v Speaker 4>hope that Selenski. I thought it might be easier to

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<v Speaker 4>deal with Zelenski. So far it's been harder. But that's okay.

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<v Speaker 5>It's so right.

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<v Speaker 2>President Trump spoke from the Oval Office as heard on Bloomberg,

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<v Speaker 2>and President Zelenski is in South Africa but now says

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<v Speaker 2>he'll cut that visit short and return to Kiev following

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<v Speaker 2>this latest attack.

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<v Speaker 3>And back in this country. Karen Harvard University is indicating

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<v Speaker 3>it wants to move quickly on its legal fight with

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<v Speaker 3>the Trump administration over more than two billion dollars in

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<v Speaker 3>federal funds. The university is telling a federal judge it

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<v Speaker 3>will not ask for a temporary to block the government's

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<v Speaker 3>funding freeze. Instead, its plans to seek a quick judgment

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<v Speaker 3>on its central claim that the administration is threatening its

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<v Speaker 3>independence and free speech. The White House froze two point

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<v Speaker 3>two billion dollars in research grants this month after Harvard

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<v Speaker 3>refused to overhe Hall its governance, hiring and diversity practices.

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<v Speaker 2>Well, Nathan, let's turn back to the markets now and

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<v Speaker 2>check out some stocks that are on the move this morning.

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<v Speaker 2>Shares of IBM, they're down almost eight percent. The company

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<v Speaker 2>said the government's cost cutting actions led Myightinlon must Department

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<v Speaker 2>of Government Efficiency are having an effect. About fifteen of

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<v Speaker 2>IBM's contracts with the federal government have been canceled or paused,

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<v Speaker 2>amounting to about one hundred million dollars in future payments.

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<v Speaker 3>And we're watching shares of Chipotle in the pre market

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<v Speaker 3>as well, Karen. They are down four percent. The fast

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<v Speaker 3>food chain lowered it's full your outlook after quarterly sales

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<v Speaker 3>declined for the first time in almost five years.

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<v Speaker 2>On the flip side, shares of Texas Instruments they are

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<v Speaker 2>up more than five percent. The biggest maker of analog

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<v Speaker 2>semiconductors gave a better than anticipated forecast for the current

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<v Speaker 2>period after demand for industrial and automotive components improved.

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<v Speaker 3>And staying in tech, Karen, After the bell, we hear

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<v Speaker 3>from one of the magnificent seven Google parent alphabet reports,

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<v Speaker 3>and we get a preview from Bloomberg's Tom Busby.

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<v Speaker 10>Key to Alphabets Q one results is growth and it's

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<v Speaker 10>Google Cloud unit, which will show whether the boom and

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<v Speaker 10>AI technology and the company's investments in AI infrastructure are

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<v Speaker 10>paying off. Despite being an also ran to Amazon and Microsoft.

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<v Speaker 10>Investors also looking to see what the company says about

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<v Speaker 10>the mounting regulatory pressures from the EU and the US

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<v Speaker 10>about alleged monopolies in search and ad tech. Bloomberg consensus

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<v Speaker 10>calls for total revenue of just over eighty nine billion

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<v Speaker 10>dollars on earnings per share of two dollars and one cent.

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<v Speaker 10>Tom busby Bloomberg Radio, and.

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<v Speaker 2>It's time now for a look at some of the

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<v Speaker 2>other stories making news in New York and around the world.

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<v Speaker 2>And for that we're joined by Bloomberg's Michael Barr.

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<v Speaker 7>Michael, Good morning, Good morning Karen. Many people lined up

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<v Speaker 7>to see Pope Francis lying in state at Saint Peter's Basilica.

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<v Speaker 7>The Vatican decided to keep the doors open pretty much

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<v Speaker 7>all night. In the first eight and a half hours

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<v Speaker 7>of public viewing, the Vaticans said more than twenty thousand

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<v Speaker 7>people had paid their last respect yesterday. Some had waited six.

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<v Speaker 9>Hours because of the respect that I hug for here,

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<v Speaker 9>the great person he was, It's worth the wait.

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<v Speaker 11>Walking in there, it was so silent, but you could

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<v Speaker 11>feel how much people really cared about him and how

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<v Speaker 11>much love there was for this man.

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<v Speaker 7>Francis, who died Monday after a stroke is lying in

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<v Speaker 7>a simple wooden coffin. Parts of New Jersey remain on fire.

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<v Speaker 7>Wildfire continues to burn in Ocean County. The fire is

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<v Speaker 7>expected to keep growing in size before rain is forecast

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<v Speaker 7>on Friday. It has burned nearly twenty square miles and

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<v Speaker 7>thousands at one point had to be evacuated. State Environmental

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<v Speaker 7>Protection Assistant Commissioner John Cecil says the fire is forty

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<v Speaker 7>percent contained.

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<v Speaker 11>We had one commercial structure that was destroyed. There were

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<v Speaker 11>a couple of smaller cabins that appears that were impacted

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<v Speaker 11>in some vehicles.

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<v Speaker 7>The cause of the fire is still under investigation. Meanwhile,

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<v Speaker 7>there are air quality alerts near the fire that will

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<v Speaker 7>include New York City. Testimony will resume today in Harvey

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<v Speaker 7>Weinstein's retrial on rape and sexual assault charges. Opening statements

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<v Speaker 7>began yesterday, including a newly added third claim from a

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<v Speaker 7>former model, Kaja Sokola. The disgraced movie local is charged

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<v Speaker 7>with forcing oral sex on her in two thousand and six,

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<v Speaker 7>but she also accused him in a civil lawsuit of

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<v Speaker 7>groping her against her will four years earlier, when she

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<v Speaker 7>was sixteen. Weinstein has pleaded not guilty of the charges.

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<v Speaker 7>New York Stop Court throughout Weinstein's twenty twenty conviction after

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<v Speaker 7>the previous trial judge allowed prejudicial testimony about allegations separate

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<v Speaker 7>from the case. Illinois Senator Dick Durbin, who is the

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<v Speaker 7>number two Democrat and the ranking member of the Senate

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<v Speaker 7>Judiciary Committee, will be leaving Congress at the end of

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<v Speaker 7>his term in twenty twenty six. Durbin made the announcement

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<v Speaker 7>in a social media video.

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<v Speaker 4>The people of Illinois have honored me with this responsibility

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<v Speaker 4>longer than anyone elected to the Senate in our state's history.

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<v Speaker 5>I'm truly grateful.

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<v Speaker 7>Global News twenty four hours a day and whenever you

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<v Speaker 7>want it with Bloomberg News Now Michael Barr, and this

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<v Speaker 7>is Bloomberg Karen.

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<v Speaker 2>All right, Michael Barr, thank you. Time now for the

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<v Speaker 2>Bloombergy sports update. Here's John Stanshawer. John, good morning, Good morning, Ken, Karen.

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<v Speaker 2>The Mets are amazing.

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<v Speaker 12>They keep getting great pitching, They keep winning at City Field.

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<v Speaker 12>Even after the Philly scored in the top of the

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<v Speaker 12>tenth inning, Mets came back in the bottom. Another big

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<v Speaker 12>hit for Pete Alonzo is league leading twenty sixth RBI

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<v Speaker 12>tied the game. Alonzo was then at second base. Darling

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<v Speaker 12>Marte hasn't done much this season, was at the plate

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<v Speaker 12>with two outs.

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<v Speaker 7>And Martin Bucks wanted.

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<v Speaker 11>The center field comes on, so Stevens's to plates.

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<v Speaker 5>Seventh straight for New York the hell.

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<v Speaker 7>Yes and why the call?

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<v Speaker 12>The Mets won four to three to complete the second

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<v Speaker 12>best home stand in team history. They won seven and zero,

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<v Speaker 12>and in eighteen and seven, the Mets have MLB's best record.

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<v Speaker 12>The Yankees avoided getting swept in a three game series

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<v Speaker 12>in Cleveland that still hasn't happens since nineteen seventy Yanks

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<v Speaker 12>one to five to one behind Carlos Rodon, who went seventies.

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<v Speaker 12>Both the Mets and the Yanks today have their first

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<v Speaker 12>day off in two weeks at Fenway. Seattleby at the

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<v Speaker 12>Red Sox eight to five, and DC Nationals again beat

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<v Speaker 12>the Orioles four to three. Home teams won in the

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<v Speaker 12>NBA playoffs. Celtics played without the injury Jason Tatum, who

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<v Speaker 12>got thirty six points from Jalen Brown one oh nine

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<v Speaker 12>to one hundred over Orlando. Cleveland made twenty two to

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<v Speaker 12>three pointers in a one twenty one, one twelve win

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<v Speaker 12>over Miami both teams up two games to none. Houston

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<v Speaker 12>beat Golden State one O nine ninety four. That series

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<v Speaker 12>tied at one, as are the Knicks and Pistons. With

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<v Speaker 12>Game three tonight in Detroit. The Knicks simply need to

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<v Speaker 12>score more than ninety eight points in the game two loss,

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<v Speaker 12>the fewest points they scored in the game all season.

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<v Speaker 12>The NFL Draft is in Green Bay, Round one tonight,

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<v Speaker 12>with Tennessee expected to kick things off by taking quarterback

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<v Speaker 12>cam Ward. The Giants have the third pick, the Patriots

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<v Speaker 12>the fourth the Jets. The seventh Hall of Famer Steve

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<v Speaker 12>McMichael has passed away. He was sixty seven. He suffered

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<v Speaker 12>from als. McMichael played thirteen season on the defensive wine

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<v Speaker 12>in Chicago. In nineteen eighty five, he was a big

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<v Speaker 12>part of the Bears only Super Bowl winning team. John

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<v Speaker 12>Stanshawerd Bloomberg Sports Care.

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

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager. But back and forth continues

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<v Speaker 3>at the White House over tariffs and trade after slapping

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<v Speaker 3>China with duties totaling one hundred and forty five percent,

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<v Speaker 3>President Trump now says he's looking forward to a deal.

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<v Speaker 5>We're going to have a great deals.

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<v Speaker 4>And by the way, if we don't have a deal

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<v Speaker 4>with a company or a country, we're going to set

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<v Speaker 4>the tariff. We just set the tariff for something that

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<v Speaker 4>we think that will happen.

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<v Speaker 5>I'd say over the next couple of weeks. When you say,

0:11:46.440 --> 0:11:48.480
<v Speaker 5>I think so over the next two three weeks.

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<v Speaker 3>That was the President speaking from the Oval Office. Has

0:11:51.040 --> 0:11:53.480
<v Speaker 3>heard on Bloomberg But this morning, China is saying there

0:11:53.480 --> 0:11:55.640
<v Speaker 3>are no talks on a trade deal and that the

0:11:55.720 --> 0:11:59.440
<v Speaker 3>US should revoke all unilateral tariffs for the very latest

0:11:59.440 --> 0:12:02.680
<v Speaker 3>spear joined Bloomberg News senior editor Bill Ferries and Bill,

0:12:02.760 --> 0:12:05.480
<v Speaker 3>this latest rhetoric out of Beijing is coming after President

0:12:05.520 --> 0:12:08.400
<v Speaker 3>Trump said he planned to be very nice with China.

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<v Speaker 3>Does it seem like the pendulum is swinging when it

0:12:10.840 --> 0:12:14.319
<v Speaker 3>comes to the rhetoric around trade between these two superpowers?

0:12:14.320 --> 0:12:16.200
<v Speaker 3>Good morning, Good morning.

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<v Speaker 11>I think absolutely, it does look like the rhetoric is

0:12:19.960 --> 0:12:24.400
<v Speaker 11>kind of shifting here. President Trump kind I think offering

0:12:24.440 --> 0:12:28.640
<v Speaker 11>a fig leaf here, olive branch to China to try

0:12:28.679 --> 0:12:33.680
<v Speaker 11>to perhaps get negotiations that really haven't begun started here.

0:12:33.920 --> 0:12:35.800
<v Speaker 11>For a while, he was saying he just wanted to

0:12:35.840 --> 0:12:38.319
<v Speaker 11>hear from Xi Jinping and get a call. There's been

0:12:38.400 --> 0:12:41.120
<v Speaker 11>no call. China has kind of stuck to its gun

0:12:41.240 --> 0:12:44.600
<v Speaker 11>so far and is now saying that the US needs

0:12:44.640 --> 0:12:49.079
<v Speaker 11>to dial back all of its unilateral tariffs as basically

0:12:49.240 --> 0:12:52.920
<v Speaker 11>a precursor to getting talks going. And interestingly enough, that

0:12:53.040 --> 0:12:56.360
<v Speaker 11>comes with a lot of Shi Jinping's economic aids actually

0:12:56.400 --> 0:12:59.680
<v Speaker 11>in Washington this week for all of those IMF World

0:12:59.760 --> 0:13:01.080
<v Speaker 11>Bank meetings that are going on.

0:13:01.520 --> 0:13:06.200
<v Speaker 3>How long can China hold out around a deal with

0:13:06.640 --> 0:13:11.040
<v Speaker 3>the US given the economic challenges that the country has

0:13:11.040 --> 0:13:14.000
<v Speaker 3>been facing for really a couple of years now.

0:13:15.400 --> 0:13:18.400
<v Speaker 11>Yeah, they've had their own issues, a real estate crisis,

0:13:18.800 --> 0:13:21.840
<v Speaker 11>kind of a lack of domestic consumption. They seem to

0:13:21.880 --> 0:13:25.720
<v Speaker 11>be willing to let things continue to unfold, and I

0:13:25.760 --> 0:13:29.079
<v Speaker 11>think they're betting that Donald Trump hits his pain point

0:13:29.800 --> 0:13:33.560
<v Speaker 11>before Shi Jinping does. There may be some opportunities for

0:13:33.640 --> 0:13:37.960
<v Speaker 11>lower level staff to engage in some informal talks. I mean,

0:13:38.000 --> 0:13:41.440
<v Speaker 11>there's still time for things to happen in Washington, but

0:13:41.520 --> 0:13:43.679
<v Speaker 11>right now, you know, I think Beijing is trying to

0:13:43.679 --> 0:13:46.200
<v Speaker 11>take a longer view. They do have the ability to

0:13:46.320 --> 0:13:50.480
<v Speaker 11>unleash domestic stimulus to try to kind of overcome some

0:13:50.640 --> 0:13:54.280
<v Speaker 11>of the barriers that are popping up from the lack

0:13:54.320 --> 0:13:57.520
<v Speaker 11>of trade that's taking place. But I think Donald Trump's

0:13:57.520 --> 0:14:00.240
<v Speaker 11>comments also signal, you know, a little bit of light

0:14:00.280 --> 0:14:01.840
<v Speaker 11>at the end of the tunnel, in the sense that

0:14:02.080 --> 0:14:04.960
<v Speaker 11>one hundred and forty five percent tariffs are probably what

0:14:05.040 --> 0:14:07.520
<v Speaker 11>we're not going to be staring at indefinitely.

0:14:07.760 --> 0:14:10.439
<v Speaker 3>Yeah, and while these talks continue, bill or at least

0:14:10.480 --> 0:14:13.280
<v Speaker 3>this rhetoric goes around, we're getting some more insight, aren't

0:14:13.320 --> 0:14:17.000
<v Speaker 3>we into what the president's potential pain point might have

0:14:17.040 --> 0:14:19.160
<v Speaker 3>been that they could have led him to sort of

0:14:19.200 --> 0:14:22.520
<v Speaker 3>dial back this rhetoric around not just China but Fed

0:14:22.600 --> 0:14:23.240
<v Speaker 3>Chair Powell.

0:14:24.080 --> 0:14:24.280
<v Speaker 5>Yeah.

0:14:24.320 --> 0:14:26.600
<v Speaker 11>Absolutely. I mean, you know, the week started with the

0:14:26.640 --> 0:14:30.080
<v Speaker 11>markets again taking a beating over the comments about both

0:14:30.120 --> 0:14:34.400
<v Speaker 11>Powell and the lack of agreement with China and other countries.

0:14:34.760 --> 0:14:37.320
<v Speaker 11>We've seen him dialing back to the rhetoric on both

0:14:37.320 --> 0:14:40.560
<v Speaker 11>of That is interesting. Some of that came after he

0:14:40.640 --> 0:14:44.400
<v Speaker 11>met with the heads of companies like Walmart, Home Depot

0:14:45.000 --> 0:14:48.680
<v Speaker 11>and Target. Obviously, just like bread and butter retailers in

0:14:48.720 --> 0:14:51.920
<v Speaker 11>the American economy who have been warning that the China

0:14:52.000 --> 0:14:54.920
<v Speaker 11>tariffs and really the lack of trade taking place between

0:14:54.920 --> 0:14:57.480
<v Speaker 11>the two countries was going to be a big problem,

0:14:57.560 --> 0:15:00.040
<v Speaker 11>and that potentially you could be in a situation with

0:15:00.080 --> 0:15:03.240
<v Speaker 11>the empty store shelves in a few months after stores

0:15:03.280 --> 0:15:06.480
<v Speaker 11>worked through the work through their inventories. That seems to

0:15:06.480 --> 0:15:09.640
<v Speaker 11>have had an impact. We also think that he's continuing

0:15:09.680 --> 0:15:11.560
<v Speaker 11>to hear from a lot of people on Wall Street,

0:15:11.880 --> 0:15:16.680
<v Speaker 11>channeling perhaps through Scott Bessett, Howard Lutnik, people with really

0:15:16.720 --> 0:15:18.560
<v Speaker 11>strong white or Wall Street ties.

0:15:18.880 --> 0:15:21.600
<v Speaker 3>Just thirty seconds left, Bill, But while the president's diling

0:15:21.640 --> 0:15:24.280
<v Speaker 3>back with China, it's really fascinating to see him sort

0:15:24.320 --> 0:15:27.240
<v Speaker 3>of ramping up the rhetoric and the pressure on Ukraine's

0:15:27.280 --> 0:15:30.440
<v Speaker 3>president as Ukraine continues to come under fire from Russia.

0:15:31.240 --> 0:15:35.080
<v Speaker 11>Yeah, Donald Trump's saying that he thinks Zelenski has been

0:15:35.160 --> 0:15:37.520
<v Speaker 11>a barrier to peace so far. He's been harder to

0:15:37.560 --> 0:15:41.560
<v Speaker 11>deal with than Putin. The Zelensky and the Ukrainians coming

0:15:41.560 --> 0:15:44.960
<v Speaker 11>back saying, listen, we agreed to a ceasefire forty four

0:15:45.040 --> 0:15:48.960
<v Speaker 11>days ago. It hasn't happened. Russia hasn't complied Russia overnight,

0:15:49.040 --> 0:15:51.960
<v Speaker 11>sending more than seventy missiles of various types and a

0:15:52.080 --> 0:15:55.400
<v Speaker 11>dwarm drone swarm into Ukraine.

0:15:55.600 --> 0:15:59.040
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