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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we once again begin with new developments in the global trade war. This morning, a Chinese Foreign Ministry spokesman says Beijing is not having trade talks with the US and the White House should not mislead the public about talks. Yesterday, President Trump said hit his administration was talking with China on trade. We get more from Bloomberg's Rosalind mathieson.
It's interesting to see the denials between them about whether they're having conversations, because it seems as if at least some kind of dialogue is going on, even at a much lower level, and those back channels might be operating. But getting from where we are now to something tangible
is another question in Tylie. So even if the red trick is done down, getting to a point where we've got a proper framework on tariffs from here between China and the US or other, you know, concessions that either side makes you know, that's very much yet to be seen.
It's Bloomberg's Rosalind Vathis and reporting and in another development, Bloomberg News has learned China is considering suspending it's one hundred and twenty five percent tariff on some US imports, including medical equipment and industrial chemicals like ethane.
Well Nathan, Japan is trying to strike a trade deal with the US to avoid tariffs, but doesn't want to be part of a US led economic block against China, It's largest trading partner. According to current and former Japanese government officials, Japan is prioritizing its own interests and has conveyed China that it doesn't fully align with the US on ship related exports and semiconductor restrictions.
Well.
Meantime, Karen Treasury Secretary Scott Besson says the US and South Korea could reach an agreement of understanding on trade as soon as next week. Besson talked to reporters at an Oval Office meeting between President Trump and the Primeter of Norway.
We had a very successful bilateral meeting with the public of South Korea today. We may be moving faster than I thought, and we will be talking technical terms as early as next week, as we reach an agreement on understanding as soon as next week. So South Koreans came early, They came with their a game, and we will see if they follow through on that.
As Treasury Secretary Scott Bessent and South Korea's finance minister says, the two sides raiming for a deal by early July. That would be before the ninety day reprieve from higher tariffs ends.
Well, Nathan, as the trade war goes on, there's a new analysis of the impact tariffs could have on Americans across the board, and we get the detls with the Bloomberg's Kimberly Adams.
They'd hit lower income consumers the hardest. That's according to a report from the left leaning Institute on Taxation and Economic Policy. It finds if the tariffs now in effect stay in place next year, it would amount to a six point two percent tax increase on those making twenty eight thousand, six hundred dollars or less. That compares to one point seven percent for the wealthiest earners making close
to nine hundred and fifteen thousand dollars. Economists have warned tariffs will raise prices for everyone, but low income families are likely to lose more because they tend to spend more on food and other necessities. Kim Berdley Adams Bloomberg Radio.
Hi Kim, thank you, and FED Governor Christopher Waller is warning that firms could begin laying off more workers if the Trump administration reinstates aggressive tariffs.
It will wouldn't surprise me that you might start seeing more layoffs tick up in the unemployment rate going forward. If the big tariffs are particular, come back on the smaller tariff world of ten to twelve percent, most of our they can deal with it. But if I see a significant drop in the labor market, then the employment side of the mandate I think is important and we step in.
Federal Reserve Governor Christopher Waller made those comments in an interview with Bloomberg's Michael McKee. You can hear the full conversation on the Bloomberg Top Bucks podcast. It is available wherever you get your podcasts.
Well, Nathan, we go to the latest on the war in Ukraine. Now, the Trump administration may be looking for concessions from Russia to reach a peace deal. Sources tell Bloomberg the US will demand that Russia except Ukraine's right to an army and defense ministry. When White House on voy Steve Witcoff meets with Russian President Vladimir Putin. Russia's Interfacts News service reports Witcoff has arrived in Moscow today and we get more with Bloomberg Russia reporter Greg Sullivan.
Kiev and its European allies are likely to welcome this development because they've been focused on Ukraine's security after the war, whether that's security guarantees from other countries or Ukraine having the ability to defend itself. However, from the Russian side, this has been a key demand of Vladimir Putin. It's one that he's actually used to justify his invasions, saying
that he needed to demilitarize Ukraine. Knowing that that has been a key concession makes it unclear whether Russia will be willing to accept that going forward.
Bloomberg's Ray Sullivan orpoorts the US also wants Moscow to return to Ukraine's Zaporegia nuclear power plant, along with land occupied by Russia in the Kharkiv region.
Turning back to markets now, Karen stocks are higher around the world as we close out the trading week. The S and P five hundred rows two percent yesterday, closing at its highest level since the day President Trump announced his tariff offensive. This morning, shares of Alphabet are up five and a half percent in early trading. The Google parent reported first quarter revenue and profit that beat analyst expectations,
fueled by continued strength in its search advertising business. Man Deep Singh is a senior tech analyst at Bloomberg Intelligence.
Google Services revenue was a slight beat, but what was really impressive was the margin beat on the Google Services. And a lot of it is because everyone thought, because they're adding AI overviews, that's going to hurt the margins of search. Oh, it didn't happen.
Bloomberg Intelligence is man Deep Singh also notes Alphabet's first qui profit was boosted by eight billion dollars in unrealized gains from an investment in Elon Musk's SpaceX.
Well on the flip side, Nathan shares of Intel are down five and a half percent. The struggling chip maker gave a revenue forecast for the current quarter that was well below what analysts projected, and Intel's chief financial officer is also warning that a tariff fueled recession could torpedo chip demand.
And another big tech company is making a strategy change, Karen, that would be Apple. Bloomberg News has learned the tech giants saman to shift major parts of its supply chain out of China. Source to say the company plans to make most of its US sold iPhones in India by the end of next year. That means Apple would need to roughly double its iPhone output in the South Asian country. Apple sells more than sixty million iPhones a year in the US.
Time now for a look at some of the other stories making news in New York and around the world, and for that were joined by Bloomberg's Michael Barr Michael, good Morning, Good.
Morning, Karen. Heads of state and royalty are traveling to Rome for Pope Francis's funeral tomorrow at the Vatican. President Donald Trump and Argentine President Javier Malay are among the leaders arriving today. Meanwhile, today is the last day Francis will lying in state at Saint Peter's Basilica before his coffin is sealed in preparation for his funeral. After the services and burial, attention will turn to the conclave to elect a new pope. A date hasn't been set yet.
Retired Los Angeles Archbishop Roger Mahoney, who was in the last two conclaves, says those votes went fast, but he doesn't expect the same this time.
The challenge is this time is there so many new cardinals from far away places who don't have the opportunity to travel and are not as involved with the other.
Cardinals retire and Archbishop Mahoney has been selected to play a key role in the closing of Pope Francis's casket. A US judge has temporarily blocked parts President Trump's executive order that calls from major changes to US election rules that includes a first of its kind demand for proof of citizenship to vote. A nineteen year old from New Jersey is facing arson charges for the wildfire burning in the southern part of the state. The blaze has grown
to over fifteen thousand acres with fifty percent containment. Ocean County Prosecutor Bradley Billheimer says investigators believe the wildfire was started as a bonfire using wooden pallettes that weren't fully extinguished.
I'm not prepared to discuss the motive at this time, nor does the state have to prove what the motive is. We can just confidently say that we think the fire was said intentionally.
Joseph Kling has been charged. Disgraced former New York Congressman George Santos is potentially facing eighty seven months in prison for an array of fraud charges. He will be sentenced in federal court today. NASA is canceling the lease of its New York City climate science unit that has occupied the same Columbia University owned building since the nineteen sixties. A NASA spokesman says the move is part of President
Trump's review of federal releases. Global News twenty four hours a day and whenever you want it with Bloomberg News Now, Michael Barn, this is Bloomberg.
Hearen all right, Michael Barn, thank you. Time now for the Bloomberg Scores update with John Stanshauer.
John, good morning, Jim Morty Kren A little more like it for the next They corrected a lot of the problems from the game two lost to the Pistons at the Garden in Detroit. They scored twenty four more points than in Game two. They made ten more free throws. Karl Anthony, Towns and og On Andobi went from a combined twenty points to team up for fifty three the next one one eighteen one, sixteen. They lead the series two to one, with Game four in Detroit. On Sunday,
the Clippers walloped Denver by thirty four. LA's up two to one. Oklahoma City has a three nothing lead on Memphis. The thunder trail by twenty six at halftime, won the second half sixty three to thirty. Stanley Cup playoff wins for Florida, Minnesota, Saint Louis and Toronto won and over time, the NFL drafted Green Bay began as expected quarterback camp Ward to Tennessee. Travis Hunter was as everyone thought he'd be the second player taken, but not by Cleveland. He's
going to Jacksonville, who traded up. And then it was the Giants turn into No one's surprise. They took penn State pass Rusher Abdul Carter. The Giants gentle manager is Joe Shane.
Great kid. We spent a lot of time with him. He'd been in constant communication with him. I know, you know you guys asked last time about the foot. We feel good about the foot.
Where he is.
He's he's been running, been working out, you know, so we're not really concerned with that at this point. But uh again, we're just excited to add a really good football player to the organization, and you know, it was really going to help our defense move forward.
Tackles went fourth and seventh, LSU's Will Campbell to the Patriots, Missouri's armand Membo to the Jets. The Commanders also took a tackle Oregon's Josh Connelly. The big new is the night game of the twenty fifth pick. The Giants made a trade with Houston and took Ole miss quarterback Jackson Dart. So while the Giants have added veteran qbs Russell Wilson and Jamis Winston, Dart becomes the QB of the future. They took him and not Colorado's Shador Sanders, who something
might be taking as high as second overall. Sanders was not drafted last night. Now available for tonight's start of Round two. John's Dashaway Bloomberg Sports Karen Nathan Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager, as we continue to follow the mood swings and the rhetoric swings when it comes to trade and tariff's, President Trump says, when it comes to China, both sides are talking.
They had a.
Meeting this morning, so I can't tell you it doesn't matter who they is. We may reveal it later, but they had meetings this morning, and we've been meeting with China.
That was the President speaking at the White House yesterday. But this morning, China's Farm our Ministry is reiterating that no talks are underway, and a spokesman says the US should stop misleading the public. For the very latest, we were joined by Bloomberg Markets reporter Valerie Titel. So, Valerie, are the US and China talking or not? Good morning?
Hey, that's a great question. I'll think anybody knows the answer. Lots of contradictions all around. But I think the thing that was most interesting this morning, Nathan, was some news that sources we're telling Bloomberg that China is looking at tariff exemptions for certain industries, one of those being the medical industry, maybe some chip components some exemptions there. But they also came out and contradicted that as well. We had a China spokesman saying they're not familiar with these
reports on China tariff exemption. So a lot of back and forth, a lot of uncertainty when it comes to the picture on the US China trade situation. Though, I have to say, Nathan, the equity market is looking through a lot of this. The S and P five hundred is in the green when it comes to the futures, and if you look at how the move the week, what that's been like. It's up nearly four and a half percent for the S and P futures and look, Nathan, that's going to be its second best week of the
year if this move hold. So it seems like there is a lot of positivity when it comes to the equity market and risk sentiment. Maybe the big takeaway from this week is, yes, there's still a lot of moving parts, but it seems like the trend for tariffs is downward and we're headed towards de escalation on the trade warfront.
Yeah, there are so many moving parts. Whether or not the US and China are talking, whether they're definitions of talking are a little bit different. There's also some word that China might not be just looking at exemptions for some US imports, but also looking to stimulate, looking for some stimulus for its economy as well.
Yeah, that's right.
We heard from the Pollitt Borrow this morning. They said they're preparing emergency plans amid external shots, wanting to boost internal demand, and looking up at setting up new financing and policy tools. They also said they want to support enterprises that are affected by tariffs. So it does seem like the poll Up Bureau is ready to stand there with some support to its industries that are hurt by tariffs.
You know, that did kind of boost the dollar. Hearing this overnight, the Bloomberg Dollar indexes up three tens of one percent. It seems like the move from overnight is really just kind of unwinding the sell America trade, Nathan, that kind of grafts our attention. On Monday, we're seeing those currencies like the Japanese yen, the euro, and the Swiss frank those that have acted like safe havens in the last few weeks losing some ground in the front of dollar strength this morning.
And of course we also heard from Treasury Secretary Scott bess And talking about how talks with South Korea may be going along a lot more quickly than even he expected. And also some word this morning on potentially what the framework of a US trade deal with India could look like.
Yeah, it seems like the Trump administration is eager to announce one framework deal, you know, before Trump's one hundred days next week. We had Bloomberg reporting just a few hours ago that the US is seeking an India trade deal on e commerce, crops and data storage. So maybe these are our first glimpse on what these framework deals are going to look like when it comes to the nations that the US is negotiating with. But yeah, you're right,
we've had positive news on the India framework deal. Also those comments from Treasury Secretary Scott Bessent yesterday talking about imminent framework deal with South Korea. So things are looking more positive in terms of the trade war and in terms of de escalation. But I think the market is really eager to see one of these deal frameworks on paper, so maybe we can draw a bit more conclusions about what the Trump administration is really trying to negotiate for with these trading partners.
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I'm Karen Moscow and I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day Bray