Speaker 1: News when you wanted with Bloomberg News. Now I'm mad
Speaker 1: kleggy steep losses Friday for the US stock market, we
Speaker 1: get more from Bloomberg's Charlie Pellett.
Speaker 2: The Nestak one hundred plunged into a bear market, with
Speaker 2: its losses from a February high surging past twenty percent
Speaker 2: as investors ditched once high flying tech shares in a
Speaker 2: broad market route. The six week sell off is wiped
Speaker 2: out roughly six point four trillion dollars from the tech
Speaker 2: heavy benchmark since its peak, spurred by worries that President
Speaker 2: Trump's tariffs will push the US economy into recession. The
Speaker 2: S and P five hundred Friday was down six percent
Speaker 2: for the week. It was down nine point one percent,
Speaker 2: Nestak on the week down ten percent, the Dow on
Speaker 2: the week down seven point nine percent. In New York,
Speaker 2: Charlie Pellett Bloomberg Radio.
Speaker 1: Federal Reserve Chair Jerome Powell made clear the US Central
Speaker 1: Bank will not rush to react to sweeping Trump administration
Speaker 1: tariffs or to the financial market turmoil that has ensued
Speaker 1: amid fears of a global economic downturn.
Speaker 3: We're well positioned to wait for greater clarity before considering
Speaker 3: any adjustments to our policy stance. It is too soon
Speaker 3: to say what will be the appropriate path for monetary policy.
Speaker 1: Chair Pale then talked about the effects of tariffs.
Speaker 3: It is now becoming clear that tariff increases will be
Speaker 3: significantly larger than expected, and the same is likely to
Speaker 3: be true of the economic effects, which will include higher
Speaker 3: inflation and slower growth. The size and duration of these
Speaker 3: effects remains uncertain.
Speaker 1: He also emphasized that with inflation still elevated, the Central
Speaker 1: Bank had an obligation to make sure a temporary price
Speaker 1: boost from tariffs does not turn into something more persistent.
Speaker 1: JP Morgan says it now expects the US economy to
Speaker 1: fall into a recession this year. After accounting for the
Speaker 1: likely impact of tariffs announced this week by the Trump administration.
Speaker 1: Diane Swark, chief economists at KPMG Tels Bloomberg, that they've
Speaker 1: adjusted their economic free forecast call.
Speaker 4: We have in fact, we have now moved to a
Speaker 4: little bit worse than our worst case scenario, and that's
Speaker 4: because the tariffs now are likely. If they even with
Speaker 4: some rollback and some negotiation, they could easily hit the
Speaker 4: highest level since the early nineteen hundreds that with more retaliation,
Speaker 4: would get us into a recession.
Speaker 1: KPMG Chief Economists Giant Swank on Bloomberg Television. Countries in
Speaker 1: Southeast Asia, major sources of exports to the US, are
Speaker 1: angling to accommodate President Trump rather than retaliate against his
Speaker 1: punishing tariffs, seeking to keep exports flowing to one of
Speaker 1: their biggest markets. Vietnam, Cambodia, and Indonesia have said in
Speaker 1: recent days that they were open to negotiations over the
Speaker 1: reciprocal tariffs Trump announced this week, while Singapore Finance and
Speaker 1: Trade hubs said it didn't plan to strike back. The
Speaker 1: offers come as nations worldwide way how to respond to
Speaker 1: Trump's decision to slap tariffs from ten percent to as
Speaker 1: high as fifth twenty percent on every country as stock
Speaker 1: markets reflect a lack of confidence in the post TARA future.
Speaker 1: The chairman of the White House Council of Economic Advisors,
Speaker 1: Stephen Miron, suggested in a Bloomberg interview that fears of
Speaker 1: recession are overblown.
Speaker 5: Imports are only fourteen percent of the economy, so you
Speaker 5: really have to think of the enormous changes to get
Speaker 5: to the place where you think a recession is likely
Speaker 5: there's maybe a little bit too much focus on risks
Speaker 5: from what's going on right now and not in a
Speaker 5: focus on the pro growth policies.
Speaker 1: The Senate dived into contentious debate fraudy, and a budget
Speaker 1: plan critical to Republican efforts to pass trillions of dollars
Speaker 1: in tax cuts and boost border security and defense spending
Speaker 1: through what President Trump calls one Big Beautiful Bill. Passage
Speaker 1: of the plan would give Republicans the chance in coming
Speaker 1: months to muscle a tax cut bill through both chambers
Speaker 1: of Congress, even if Democrats are unanimously opposed, just as
Speaker 1: they did in Trump's first term. President Trump had nearly
Speaker 1: clinched an agreement with TikTok's Chinese owner by dance that
Speaker 1: would have spared the popular app from a US, but
Speaker 1: the deal was scuttled after China withheld its approval following
Speaker 1: this week's tariff announcement. This according to a person familiar
Speaker 1: with the matter. Alex Ovechkin has tied Wayne Gretzky's NHL
Speaker 1: goal record by scoring the eight hundred ninety fourth of
Speaker 1: his career at the NCAA Women's Final four Yukon in
Speaker 1: South Carolina. Advance there will play Sunday for the National Championship.
Speaker 1: Friday on Wall Street, the Dow sank twenty two thirty one,
Speaker 1: NASDAK dropped nine sixty three. The S and P down
Speaker 1: three to twenty two. The ten year treasurer yield four
Speaker 1: point zero one percent, the two year three point sixty
Speaker 1: seven percent. The VIS closed at its highest level since
Speaker 1: April twenty twenty. Join us for a special weekend edition
Speaker 1: of Bloomberg Surveillance this Sunday, Jonathan Faraoh and Lisa Abramowitz
Speaker 1: will take you through the market turmoil and what's ahead
Speaker 1: for the trading week. It all starts five pm Eastern
Speaker 1: on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcasts page
Speaker 1: on YouTube. That's news when you want it with Bloomberg News. Now.
Speaker 1: I'm mid calagime and this is Bloomberg