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Good morning, I'm Lisa Matteo and I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with an escalation in the trade war. Just a few hours ago, China announced it was once again increasing tariffs on US goods. Let's go to Hong Kong get the very latest with Bloomberg's Jill Desis.
Jill, Good morning, Lisa and Karen. Yes, So, the latest we have from China is that they will raise tariffs and all US goods from eighty four percent to one hundred and twenty five percent. That's starting April twelfth, and then they say that they ultimately plan to ignore any further increases announced by Washington. The Chinese officials actually called the latest the Trump's administration, the latest moves a joke. They said that have given that American goods are no
longer marketable in China under the curve teriff rates. If the US further raises tariffs on Chinese exports, they are just going to disregard those measures. Seem that, at least in response to that move from Donald Trump overnight to clarify actually that the terriff rights on Chinese goods flowing into the United States were actually one hundred and forty five percent if you were to take into account earlier measures. They raise these rates this time around and then say
they are done at this point. You know, we saw and five hundred futures fall further after this announcement. We saw futures on the Hansang China Enterprises INEX in Hong Kong pair gains that actually closed a little bit up earlier today, just on bets that China would introduce more stimulus to sort of help its economy. There's some speculation that that may be coming down the pike at some point. But ultimately, what we're really seeing here is this escalation
and tensions between Beijing and Washington. Neither side has really blinked at this point. We'll have to see what ultimately happens in Washington in response to this, but at least from China's perspective, they're pretty much done here in Hong Kong. This is Jill deesis Bloomberg Radio.
All right, Jill, thank you about the latest news on China. Increasing tariffs comes after President Trump expressed optimism a deal with Beijing. Will be reached.
We're resetting the table, and I'm sure that we'll be able to get along very well. I have great respect for President She's been in a true sense, he's been a friend of mine for a long period of time, and I think that we'll end up working on something that's very good for both countries.
The White House confirms China now faces a one hundred and forty five percent levy on all goods it sends to the US well.
Karen Bloomberg News has learned top European officials are planning to visit China later this year to discuss trade with President Jijin Ping. A source to say European Commissioned President Ursula Vonderline and European Council President Antonio Costa have agreed to the summit in Beijing. The possible meeting. It comes as Spanish Prime Minister Pedro Sanchez visited Beijing today, saying he sees China as a partner of the EU.
Lisa Bridgewater Associates founder Ray Dalio says the tariff turmoil has damaged the US reputation for really liability. Dollehoe spoke with the Bloomberg's Francine lackwall.
I'm not the politician.
I'm not the negotiator.
I'm not the person to say whether that style of handling it was better or worse. I would say that it dramatically affected psychology and attitude about the United States' reliability.
And Dolio said that while he is pleased about Trump's decision to pivot, he cautioned that the volatility will have lasting effects. Here the full conversation on the latest edition of the Bloomberg in the City podcast.
And futures are lower this morning as a turbulent week to the markets comes to a close. Yesterday, stocks gate back a chunk of Wednesday's massive rally. The S and P five hundred fell three and a half percent.
Well, there's another worry for Wall Street this morning, Lisa, as the safe haven status of US treasuries and the dollar have come into question. We get the latest of Bloomberg's John Tucker, John, Good morning, Good.
Morning, Karen. Normally, in periods of stress, money flows into the perceived safety of US treasuries. They rallied during the global financial crisis nine to eleven and even when America's own credit rating was cut. But now as President Trump unleashes an all out of salt on global trade. Their status is the world safe haven is increasingly coming into question, Henry Allen at Deutsche Bank, Whereas this could be the start of a regime change.
It's really striking that today we have seen US treasury sell off quite severely in response to what's going on.
So I think that does speaks that broad a confidence crisis.
As US debts sold off, yields, especially on the longer term debt, have surged in recent days. The dollar has also plunged, and a disconcerting pattern has emerged investors dumping treasuries at the same time they sold stocks and other risky assets. As former Treasury Secretary Larry Summer says, they're trading like the debt of an emerging market country, you know, Yorkome. John Tucker, Bloomberg.
Radio, All right, thanks John. It also remains to be seen what impact the tariff turmoil we'll have on corporate earnings. This morning, big banks begin to rep Let's get a preview with Bloomberg's Shanali Bosick with JP Morgan.
Kicking off big bank earnings in the middle of an escalating tariff war, investors will be watching out for how much money the big banks are making at their trading desks in the middle of historic volatility. Investors will also be keeping an eye on how much these banks are able to lend as consumers are becoming more wary about potential inflation on the heels of tariffs. I'm Shanali Basic in New York for Bloomberg Radio.
All right, Chanale, thank you well. In other news this morning, a New York City sight seeing helicopter broke apart in midair and crashed into the Hudson River, killing the pilot and a family of five Spanish tourists. New York Police Commissioner Jessica Tish explained it was only in the air for fifteen minutes when it reached the George Washington Bridge before turning south, then crashing shortly thereafter.
The aircraft lost control and hit the water just a few feet off the coast of peer A.
Park in Hoboke, and.
The victims included Siemens executive August den Esco Barr. New York City Mayor Eric Adams we.
Loss of five family members and a pilot to an incident was still investigating their many unknowns here, but without federal, state, and city partners. We'll find out exactly what happened.
The helicopter, identified by the FAA as a Bell two six helicopter, was on its sixth flight of the day. It was found upside down in the fifty degree water when rescuers arrived at the scene, which was closer to the New Jersey side of the Hudson River. The NTSB and the FAA are investigating well.
Looking at the nation's capital, the House narrowly passed a framework for a budget proposal that President Trump supported, but it's not a done deal. Bloomberg's Amy Morris is in Washington with what comes next.
House Speaker Mike Johnson celebrated the passage of the blueprint legislation.
Big components of the One Big, Beautiful Bill is to ensure that we don't have the largest tax increase in US history all at once.
Johnson says this paves the way for Republicans to cut one and a half trillion dollars from the budget. House Minority Leader Hakim Jeffrey says that can't happen unless you cut medicaid.
Republicans can run from their proposal, which is the largest Medicaid cut in American history, but we will never allow them to hide.
Johnson has set a target of the end of May to enact the bill. Senate Republicans talked about getting it done by august in Washington. Amy Morris Bloomberg Radio, It's time.
Now for a look at some of their 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.
The Supreme Court says the Trump administration must work to bring back a Maryland man who was mistakenly deported to El Salvador. Kilar Abrego Garcia is a Salvadoran citizen who had an immigration court order preventing his deportation to his native country over fears he would face persecution from local games. The administration has conceded that it made a mistake in sending him to El Salvador, where he is being held in a notorious prison, but also argued that it no
longer could do anything about it. Former federal prosecutor and Loyola Law School professor Lori Levinson.
This has been the first big pushback on the administration by the Supreme Court, and it took the administration basically taking a hard line that they didn't have to do anything to bring back somebody, even though they wrongfully sent them to a foreign country.
Loyola Law School professor Lori Levinson, a Russian American woman freed by Moscow, has arrived back in the US as part of a prisoner swap. A plane carrying Cassenna Carolina landed late last night at Joint Bass Andrews, where she was greeted by her fiancee. She was released earlier in the day in exchange for a Russian German Man who
had been jailed in the US on smuggling charges. Carolina was arrested last year, convicted of treason on charges stemming from a donation of just fifty two dollars to a
charity aiding Ukraine. There are now two hundred and twenty two reported depths in the tragic roof collapse of a crowded nightclub in the Dominican Republic this week search for bodies and Santo Domingo has ended, and as we have been reporting, a New York City sight seeing helicopter broke apart in midair and crashed into the Hudson River, killing all six people on board. This witness saw it happen. It was just coming down and.
At forty five angle and they went straight into the water and it was a big splash.
It was crazy.
The five passengers were all from Spain. The pilot also killed Global News twenty four hours a day and whenever you want it with Bloomberg News now now Michael Barr and this is Bloomberg Heron.
All right, Michael Barr, thank you time now for the Bloomberg Spores update. Here's John Stshauer, John, good morning, Good morning daring.
Not the first time Justin Rose has had a good start to the Masters. In fact, no one has had the first round we need more often. This is the fifth time, one more than Jack Nicholas, who won the Masters six times.
Rose has never won the green jacket.
Will this be the year for the forty four year old from England who's plenty the Masters for the twentieth time. He had a brilliant opening round a seven under sixty five. He needed only twenty two plucks.
It was a really good day's golf on a golf course that was a stern test. I think if you look at the overall leaderboard, not many low scores out there, so you had to take got a quality shots and the light over the way played.
Three golfers trail by three, led the oberg the Canadian Cory Connors and the defendee champion Scottie Sheffler. Rory McElroy was four under with four roles to play, then had two double bogies. The next in Detroit, gave three of their top players the night off, lost one to fifteen to one oh six Cade Cunningham thirty six points for the Pistons, who've gone from fourteen wins last season to forty four this year, and as the now they'd played
the Knicks in the first round of the playoffs. Although the Knicks lead over Indiana for third in the East is down to one game, the Rangers took out some frustration for their disappointing season, lasting the Islanders at Ubs Arena nine to two. Rangers scored four goals in the first period, four more than the third. Red Sox salvaged the game with the Blue Jays at Fenway four to three, and Tenames the Yankees back home Tonight's Bay the Giant
Semester and Sacramento taking on the Aids. The Jets brought in Allen Lazar because of his history catching passages from Aaron Rodgers in Green Bay.
Rogers has gone.
Lazards stayed, but his salary was cut from eleven million to two minds. John Stanshy, I were Bloomberg Sports.
Kenny Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business Ad. This is Bloomberg Daybreak.
Hey, it's about thirteen on Wall Street. Well, some more volatility thrust into the market. Yesterday President Trump's tariffs on China actually higher than previously announced, and now China retaliating again. You're here to break it down for us. As Bloomberg Senior editor Bill Farries. Bill, it's hard to keep up with his news flow constantly changing. So now the White House says the total tariffs and post on China now
add up to one hundred and forty five percent. And now we're learning China is going to raise tariffs on all US codes from eighty four percent to one hundred and twenty five percent. I mean, how long is this back and forth going to go on?
You know, yes, what we've been talking about all day. Thanks for having me. There's a real question at what point do these tariffs kind of start becoming meaningless numbers. I mean, we know an analysis by Bloomberg Economics showed that once you get over one hundred percent tariffs, at least in the medium term, you basically bring an end
to bilateral trade. It's basically a complete decoupling. But even in the short term, you know, the big question is when do you start seeing the impacts from this, And we're seeing it now with some companies already cutting back on purchase orders from China. US companies cutting back on purchase orders and a lot of uncertainty, CEOs tossing out full your guidance, and no one really knows where this is except that it's headed to a place we haven't
been before. But China's saying they're raising US tariffs on the US goods till one hundred and twenty five percent, and they added to that that they are not going to go any further. They said they won't respond to additional US moves because they said what the Trump administration is doing now has quote become a joke.
Yeah, And they said they are going to ignore it. I mean, can they do that? Can you just ignore it?
I think, you know, at some level it becomes it's not clear that it really makes a difference. Right Once, once you have one hundred and thirty percent or one hundred and forty percent tariffs on something, doesn't really matter if you go to one hundred and sixty percent. Maybe for some companies it does, but for the vast majority of products, if you're talking about more than a doubling of their costs, you're probably starting to wipe out that market for them.
Okay, Now you talked about briefly some of the corporation's businesses how it's affecting them. Dig more into the global impact of all of this back and forth.
Well, it's you know, it's it's obviously the biggest trading relationship in the world, the US China trade relationship seven hundred billion dollars in annual trade back in normal times. But it's really it's bigger than that, because we're talking about American companies that have supply chains that maybe go from China into Vietnam, into another country, maybe even into
Europe than over to the US. We've already seen as of several days ago, eleven hundred requests from American companies seeking exemptions from some of these teriffs, because they're saying, even if we want to produce more in the United States, the goods we need to make that production possible to build up that capacity are getting tariffed, so we would like to have some of these exemptions. But you're also seeing Europe now, European leaders planning to go to China.
You have the Spanish Prime Minister saying that the EU may need to shift more of its attention to better relations with China. So China is potentially going to become a big beneficiary of all this. They have things they can do to at least cushion the shock from the US measures, but they certainly can't overcome.
All of it.
So we're really in a place uncharted waters we've never been before.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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I'm Lisa Matteo. Join us again tomorrow morning for all the news you need to start your day right here on Blueberg Daybreak