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Good morning, I'm John Tucker and I'm Karen Moscow. Here are the stories we're following today.
And Karen, futures are getting a lift on this last trading day, the holiday shortened week. On optimism over trade talks, President Trump's negotiators made quote big progress in a meeting with Japanese officials. We're seeking to avoid higher levies that he's threatened against US trading partners. Let's get more from Bloomberg. Tokyo Bureau a chief Isabelle Reynolds.
Japan's negotiator. Akazawa has been the focus of global attention really because he's been first in the line to try and get a reprieve from these global tariffs. He was preparing for talks with the Commerce Secretary and the Treasury Secretary while he was on his way to Washington. Suddenly Trump announces, oh, I'm going to be part of these negotiations. So that must have been rather a shock for him.
It's rather unclear what actually happened in the end. About what seems to have happened, in fact, is that Akazawa went to the White House and had brief talks with Trump ahead of the actual negotiations.
Bloomberg'szi Isabelle Reynolds says the talks did not result in an immediate halt on the terrace, but preparations are underway for a second round of talks to take place later this month.
Well John Chinese President Xijin Pang is making a diplomatic push to counter US pressure on nations to limit trade ties with Beijing. He is wrapping up a three nation tour of Southeast Asia, and she promoted the idea of a quote Asian family and called for regional unity.
And Goldman Sachs as US investors could be forced to offload up to eight hundred billion dollars in Chinese docks in a worst case financial decoupling with China. In the same scenario, Chinese investors might need to up unload their US financial assets, which could amount to one point seven trillion. And Carlisle Group CEO Harvey Schwartz says that global economic growth relies on the two countries finding a work together.
I don't think it's a good outcome if the number one and two largest economies in the world haven't found an equilibrium around cooperation. It's really critical for the global economy and for trade that we and China find a place of cooperation and equilibrium. And I think the faster that can happen, the better it is for all business activity globally, especially in the United States.
Carlota Groups CEO Schwartz was speaking to Shinali Bask for Bloomberg Original's upcoming series Bullish.
Well, John, we turned to the markets now, and futures are higher. Following yesterday's sell off on Wall Street, the S and P five hundred drop two and a quarter percent of the Nasdaq fell three percent after ved share j. Powell said trade tensions risk undermining the Fed's employment and inflation goals. Powell spoke at the Economic Club of Chicago.
The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth.
Powser marks are in live here on Bloomberg, reinforce a message he has repeatedly emphasized. FED officials are in no hurry to change the Central Bank's benchmark policy rate. The Fed next to Side's on May seventh.
In Monetary policy, also and focus this morning overseas, the European Central Banks center making an interust rate decision. Now, let's get the very latest from Bloomberg to you on parts in London.
You won good morning, John and Karen.
While the Fed may be in no hurry to change rates, that is exactly what we're expecting today from Frankfurt. Sixty one of sixty two economists in Bloomberg's survey reckon the European Central Bank will cut rates at their lunchtime meeting. That will take the deposit rate from two and a half to two and a quarter percent. The threat of swinging tarists from the United States putting pay to any talk of a pause at this meeting, and investors expect
at least two more rate cuts later this year. But you won't be surprised to hear there is a lot of uncertainty around the outlook in London.
I'm YOUU and pots Bloomberg Radio.
Are you and thank you?
Well.
Back here in the USh, the government's anti trust trial taking a breakoup Meta Platforms continues today. Now, some may think about a Platforms as a giant conglomerate, but according to Mark Zuckerberg, the company is fighting for its survival begin more with Bloomberg's Denise Pelle Greeney and.
A marathon three days of testimony in the Federal Trade Commission's trial to break up Meta, the CEO of the company that owns Facebook, Insta, WhatsApp, and Threads, testified Facebook is fighting for its existence even when it's ahead. The FTC wants to force Meta to sell off Insta and WhatsApp, citing emails and documents that suggest Meta bought the companies
to eliminate competitive threads. But Zuckerberg and Meta's lawyers say staying alive in the fast moving world of social media requires staying nimble, and they also say the acquisitions didn't harm competition. The outcome of the trial is uncertain. Denise Pellogrity Bloomberg Radio.
Thanks Denise and shares of Hurtz. They are driving higher this morning. In fact, they're storing twenty five percent. CNBC is reporting Bill ac Coman's Pershing Square Capital Management has a massed position of almost twenty percent of the car rental Company.
And finally, John Harvard University's refusal to comply with a Trump administration deal to require it to reform its governance and and diversity programs is resulting in retribution the administration's freezing funding of two point two billion dollars of multi year grants. Accusing Harvard of mishandling antisemitism on campus, President Trump said this school should lose its tax exempt status, and several outlets reported that the IRS is considering the issue.
But Larry Summers, former US Treasury Secretary and former president at Harvard, tells Bloomberg the university needed to push back on the administration's requests.
Harvard should not go interjecting itself into politics, but god, when it is the object of an extra legal set of orders and threats, I don't think it had any viable choice at all but to respond us strongly.
And Former US Treasury Secretary Larry Summers also told Bloomberg that President Trump's actions toward Harvard are part of an effort to suppress institutions that challenge his administration. You can catch David Weston's full conversation with Summers on the Bloomberg podcast page on YouTube. Time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Barr Michael, Good Morning.
Good morning, Karen. Federal John said there is probable cause to hold Trump administration officials in criminal contempt of court for sending accused Venezuelan gang members to an El Salvador prison last month. Despite his order to immediately halt the deportations. US District Judge James Bosberg issued in orders saying that officials acted in willful disregard. The administration plans to appeal
the ruling. Maryland Senator Chris van Holland has flown to L. Salvador to find out more about Kilmar Abrego Garcia's detention. The Maryland man was being detained in the notorious L. Salvador prison after he was deported last month. A federal judge found of Brego Garcia's detention unlawful and ordered the administration to facilitate his return to the US. Van Hollins says he had met with US embassy personnel and Salvadoran officials.
This is simply about letting him have his day in court. We used the courts to make sure that we don't convict people who are not guilty, and that we convict those who are.
Meanwhile, the Trump administration wants a US appeals court to block a judge's directive that government officials be questioned about their failure to seek the return of Abrego Garcia. Attorney General Pam Bondi.
He is not coming back to our country. President Buquelea said he was not sending him back.
That's the end of the story.
Ag Bondi says the administration believes a Brego Garcia was a member of MS thirteen, an allegation his family denies. Ten New York prison guards have been charge in connection with the fatal beating of a twenty two year old prison inmate, including two charged with murder. Prisoner messiaht Natwee at the Mid State Correctional Facility was sent to a hospital where he died on March first, on a Daga County District Attorney William Fitzpatrick.
The first count charges two individuals corrections officers Jonah Levy and Caleb Blair, with depraved mind murder. Not an intentional murder, but a murder so depraved and so wanton and disregarding of human life that New York law allow us allows it to rise to the level of intentional murder.
DA Fitzpatrick says other guards are accused of trying to cover it up. Global news twenty four hours a day and whenever you want it with Bloomberg News Now.
I'm Michael Barn. This is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update. Here's John Stanshawer, John, good morning, want to care in.
All good for the Yankees.
They got Clark Schmidt back in the rotation, pitched well in his season debut. They got a seventh inning, go ahead home run from Aaron Judges first homer in eleven games, and a game saving diving catch and right field from Clave Bellinger for the final out of a four to three win over Kansas City. They sweeped the series. Play tonight at Tampa Bay, too feel very much like a Yankee home game. The Ray's home stadium is where the Yankees play their spring training games. The Mets in Minnesota
helped scoreless for seven innings. They tied the game with three in the eighth, but lost to the Twins four to three, and ten Red Sox won one nothing the Tampa Bay. David Hamilton's homer the only run Nationals lost in Pittsburgh sixty to one. The Orioles won nine to one over Cleveland. Jackson Holiday at a Grand Slam in Toronto's three to one went over Atlanta. The Blue Jay set a club record five pitchers had nineteen strikeouts.
The Brazman now five and thirteen.
NBA play in two wins with the road teams Miami in Chicago. Tyler Hero scored thirty eight Dallas in Sacramento as the MAVs won the second quarter by twenty five. The Heat and the MAVs play tomorrow in Atlanta and in Memphis to see who gets the last playoff spots. Then Saturday it's the Nixon Pistons Game one at the Garden. Detroit won only fourteen games last season, forty four wins this year.
The Knicks coach is Tom Dibbodell.
They've had a great season. I think, you know, Jab's done a great job there that they added the I think really good veterans to compliment you know, the young players that they have in a lot of their guys that made big steps. You look at the development of Duran and you know Stewart and you know obviously obviously one is Cunningham.
Yeah, all Kid Cunningham did this season is an average twenty six points, six rebounds, and nine assists per game. Last Stanley Cup Loundspot goes to Montreal this after the Canadians went only eight of their first twenty four games.
John Stashanwler Bloomberg Sports Karen John.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business Appum, this is Bloomberg Day Break.
Hey, that brings this to five twelve. On Wall Street, the markets they continue to be whips on by trade uncertainty, and let's try to get a handle on where things stand right now with Bloomberg Senior editor Bill Ferry's joining us this morning. Bill, thanks for being with us. Wall Street seems to be grasping at some positive signs in the trade talks between the US and Japan. Let me put the question out there, is that hope well placed this morning?
Yeah?
I think the jury is out on that.
President Trump going online yesterday to say that, you know, big progress, big progress had been made in the trade talks with the Japanese team, and definitely this Japanese delegation is being seen as a test case by dozens of countries that are hoping to see just what it will take to strike a deal with the Trump administration. But I got to point out it was a very relatively
short meeting for a trade negotiation. The top Japanese to go met with Trump for about fifty minutes, and then he met with officials from Treasury in Commerce for just over an hour, about an hour and fifteen minutes. So usually trade deals are really detailed back and forth negotiations that take hundreds of hours and weeks. So they have scheduled a second round of meetings later in this month.
But that ninety day clock that President Trump put on reaching deals with other countries is already ticking.
And to be sure, the levies remain in place for Japan at this juncture.
That's right. What Japan is wanting to do.
They want to see the full twenty four percent tariffs, the reciprocal so called reciprocal tariffs wiped away. They'd like to see that ten percent kind of baseline tariff also gone. And those are the kind of things I think investors and the markets are going to really be looking at when they finally if they finally come to a deal, they're going to see is it possible? Well, how far back can you roll these tariffs? How far is President Trump willing to go?
That's Japan or talks with other countries right now going on?
Well, the administration says that there are talks maybe at lower levels taking place. We know South Korea is preparing to send a delegation. We've heard Scott Bessett talking about countries like Argentina and even India being near the near.
The front of the queue.
But in terms of the substantive talks, President Trump said he wants to sign off on all these deals he popped into this meeting with the Japanese. For him to do so with all these other countries is definitely going to take a lot of time.
Okay.
At the same time, fedch Heir Howell doesn't sound like he's going to ride to the rescue as the trade work continues. What's happening on that front.
Well, he's definitely signaling kind of a wait and see approach here so far. Even though I think the markets have been pricing in between three and four rate cuts this year, he said that, you know, the FED needs to see price stability before they really make a move that he wants to make sure that inflation, the bump up and inflation expected from tariffs, doesn't become a longer term problem. Remember the FED got burned during the pandemic when they said that the inflation was temporary or it
was in a transition, transitory. After the pandemic was winding down, it wasn't transitory. It climbed higher. It became a political problem, became an economic problem. They don't want that to happen again. So they're really more in a wait and see mode.
It's hard to dealing trade in foreign relations. The Chinese president Hujinping, he's not a three nation Southeast Asia tour, and the message there seems to be you can't rely on the US, but you can rely on us.
Yeah.
So Shei Jinping in Cambodia today. He's already visited Malaysia and Vietnam. Those are countries that also have a good trading relationships with the US and va Nom in particular has become a place where supply chains have been re
routing as companies tried to move out of China. Now a lot of those countries are starting to have a second look at China, seeing it as perhaps a more stable economic partner to have, and they're also worried about these same reciprocal tariffs and some of the other trade issues that the US is bringing up.
So it'll be very interesting to see where that develops.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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I'm John Tucker. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg day Break