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Good morning, I'm Lisa Matteo and I'm Nathan Hager.
Here are the stories we're following today. Big moves in the markets come as the US and China agree to temporarily lower tariffs on each other's products. The US will reduce levies on most Chinese imports from one hundred and forty five percent to thirty percent, while China will drop its duties on US goods from one hundred and twenty five to ten percent. Treasury Secretary Scott Bessen spoke about the deal this morning in Geneva.
We have reached the an agreement on a ninety day pause.
And substantially moved down the tariff levels.
Both sides on the reciprocal tariffs will move their tariffs down one hundred and fifteen.
Percent, Treasury Secretaries god Best and added that neither side wants to decouple. US Trade Representative Jamison Greer was also at the news conference. It said it's imperative the US reduced it's trade deficit.
Person eight and our fifty billion dollar trade deficit at the beginning of the Biden administration, so that is a rapid an expansive increase in the trade deficit, and our view is that this is driven in large part by non reciprocal trade, among other things, and the result has been offshoring of manufacturing and other negative impacts on the US economy.
That was US Trade Representative Jamison Greer and Treasury Secretary Scott Besson speaking earlier at a news conference heard live on Bloomberg Radio.
Well, Nathan, the Chinese delegation was not at the press conference in Switzerland. We get more from Bloomberg's deal desis in Hong Kong.
And we've seen, you know, quite a bit of chaos and sort of how a lot of that has been hammered out. Yet you've got this framing from Vessent and Greer kind of saying, look like, you know, can we know what we're doing, and like this is all part of the negotiation strategy. So I thought that was a really interesting thing to see. But then, yeah, obviously juxt opposing that with you the very very limited amount of
information that we've gotten out of the China side. I mean, you know, it's not like there was this big press conference where both of them are coming out together. So I do think that that kind of indicates, you know, I'm really interested to see what the next ninety days look like and if this is actually something that means, you know, sort of a lasting to talk between these two.
Bloomberg's Gilds is reporting from Hong Kong now. According to the Shinwan News Agency, this morning, China says it committed to the stable development of relations with US.
And Lisa, we have an update on trade negotiations with another Asian country. Japan's Prime Minister Shigaru Yeshiba says his country will not accept any initial trade agreement with the US that excludes an accord on autos. Japan will continue to seek a reprieve from all US tariff measures and hopes to reach some manner of agreement in June.
Well Nathan, President Trump is vowing to cut prescription drug prices up to eighty percent. Bloombergs John Tucker joins us with more. John, how does he plan to do all this?
Well, mister Trump, Lisa says in a social media post, He's going to sign in executive order this morning, but it'll take place at nine eastern to institute a most Favored Nation policy. Now, he doesn't go into much detail beyond that he claims it would drop pharmaceutical prices by thirty to eighty percent in the US. Mister Trump didn't outline potential limits on the policy, such as whether it's going to apply only to government programs like Medicare Medicaid Now.
Americans do pay the most in the world for medicines, fueling innovation and driving the growth of the pharmaceutical industry. Now, drug makers have said revamping the system will slash revenue and also stifle the development of breakthrough therapies. A pre market shares a Pfizer They're down three percent, Merk shares down one point six percent, Eli Lilly is falling down two point six percent, and shares of Johnson and Johnson
also down two point four percent. In New York, John Tucker Bloomberg Radio.
All right, John, thank you. President Trump has headed to the Middle East today. It's his first official major foreign trip since returning you to office. The President will travel to Saudi Arabia, Katar, and the United Area Emirates. Bloomberg's Jumani Bressecci is in riod dozens.
Of deals covering everything from defense and security to artificial intelligence, rare metals, and transportation. Are expected to be signed, but the relationship between Trump and Crown Prince MBS goes further than deals. The recent decision by OPEI plus the oil group led by the Saudis to raise production quickly will also have gone down well with the US president since
its caused prices to drop. When it comes to foreign policy, the Saudi Crown Prince told Trump he's ready to help him achieve his peacemaking ambitions with Ukraine and US Special ENVOYE. Steve Whitkoff has also been pushing for progress on a cees Far deal in Gaza.
Bloomberg's Jamani Verssetti adds the visit comes as Saudi Arabia faces financial challenges due to oil prices. It's aiming to secure deals to help boost its economy.
An ABC News is reporting President Donald Trump's administration will likely accept a luxury Boeing jumbo jet from Cutter's royal family and what may be the most valuable gift ever received from a foreign government. The network says this super luxury Boeing seven forty seven eight jumbo jet is set to be used as Air Force one Now. The Trump appeared to confirm some of the reporting and a truth social posts that criticized Democrats who were quick to fault the potential deal.
And as the President heads to the Middle East, Lisa Hamas says it will release the last living American hostage it's holding in Gaza. That's after renewed talks with the US over a true deal with Israel. The freeing of twenty one year old Israeli soldier Aidon Alexander, who is a US citizen, is a step toward reaching a new ceasefire agreement in Gaza, and.
President Trump's push to end the war in Ukraine could come to a head this week. The President is urging Ukrainian President Vladimir Zelinsky to meet with Russia's Vladimir Putin in Turkey this Thursday, before they've agreed to a ceasefire. Soelinki says he'll be there and he hopes Putin won't look for excuses for why he can't make it. Oksana Markarova is Ukraine's ambassador to the US.
Any day potentially could be a great day. And we have heard loud and clear from President Trump that ceasefire should be full and unconditional, and we have heard from other European leaders and we have heard from President Zelenski who always says, yes, Ukraine is radio. Nobody wants peace more than Ukraine.
Now. Ukrainian Ambassador Oksana Markova appeared on ABC's This Week Heard Sundays, I'm Bloomberg Radio and Lisa.
Tensions appear to be easing between India and Pakistan. Both sides have agreed to a ceasefire. That's after four days of attacks that brought the nuclear armed rivals to the brink of full blown war. The US says it helped mediate the agreement, but India maintains it was the result of bilateral talks. India's High Commissioner to Singapore, Showpakambuli, says his country does not need outside help when it comes to the disputed Kashmir region.
For US, Kashmidia' is a bilateral issue. Diplomacy does happen.
We do speak to our counterparts, so Foreign Minister and Foreign Secretary do speak to their counterparts. But that is to clarify our position and what is our demand of Pakistan.
Indian High Commissioner SHOWPOC I'm Bully, spoke with Bloomberg sus Than Daman in Singapore. The latest tensions began April twenty second, when gunman killed twenty six civilians in India's Jamu and Kashmir regions. India responded two weeks later with strikes on nine targets inside Pakistan.
Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael bar Good Morning, Michael.
Good Morning. Le So Transportation Secretary Sean Duffy said that Newark Airport would see several weeks of reduced capacity as officials grapple with continuing delays and safety lapses. Duthy on NBC's Meet the Press, what you see.
In Newark is going to happen in other places across the country. It has to be fixed. And so what we're having is some telecom issues. We're also having some glitches in our software. As the information comes in is overloading some of our lines and the system goes down. So I'll just tell you specifically in Newark, we believe we're going to have it up and running in short order. We're going to be able to fix that clitch.
Meet the Press can be heard Sundays on Bloomberg. Meanwhile, Senate Minority Leader Chuck Schumer says it's something that needs to be addressed by the federal government asap.
This situation cannot last. We need all hands on deck at the FAA. Make Newark number one, get it done, get it done fast.
Schumer, speaking in Queen, says, we need the FAA to lead the final stage of jury selection for the racketeering and sex trafficking trial of hip hop Mogul's Sean Diddy Combs takes place later this morning. Also today, opening statements begin. A new song by rapper Kanye West has been removed from streaming platforms for glorifying Adolph Hitler. The rapper has been accused of anti Semitism for releasing a song last week called Hyle Hitler, which includes lyrics that praise the
Nazi dictator. Tens of thousands crowded into Vatican City to hear the first Sunday address of the first American Pope, Leo, with a special message for Mother, wishing them all, including those in having a happy Mother's Day. Meanwhile, the Archbishop of Chicago, Cardinal Blaze Supag, spoke on the importance for Leo to reemphasize a message of peace in one of the first moments of his papacy.
It is something for him to be a voice, as he said for peace at the very beginning of his announcement, when you wish presented to the people.
He cares deeply about that.
Cardinal Soupage spoke on ABC's This Week Heart Sundays on Bloomberg Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, Michael Barrn, this is Bloomberg, Lisa, Thank.
You, Michael. Time now for our Bloomberg Sports update. For that, we bring in John stash Hour.
Hey there, John, Hey, Lisa.
The Cleveland caval Leers had that great regular season, sixty four wins most of the East, but the Calves are in big trouble Round two of the NBA Playoffs.
They trail Indiana three games to one.
The Pacers after losing Game three by twenty two, one game four by twenty the score at halftime was eighty to thirty nine, a forty one point a half time lead tide the playoff record. Oklahoma City won at dead but to tie that series at two knicks with a two to one lead, playing the Celtics huge Game four tonight at the Gardens.
So far, home court has meant nothing.
In the last eight Knick playoff games have been won by the road team. Celtics on the road thirty five and nine, including three to zero at MSG, also tonight in Chicago.
It's the draft lottery.
The winner expected to then draft the eighteen year old duke star Cooper Flax Stanley Cup Playoffs Florida shutout Toronto two to nothing, series, tied to two, Dallas to five to two win over Winnipeg for two to one series lead. Yankee spent the weekend in sack Framento. The rubber game saw the Yanks leading the A's six to one, fifth in eight.
And the three to one said, deep down the right field line, it could be got it it is. It's a home run, a grand slam for ben Rice deep BoNT lecburn in right field here at Sacramento. Hey, the Yankees a blow this baby open. It is now ten to one.
Bombers.
This networked to call the Yankees, who blew the lead Saturday, won their game Friday ten to two, and won yesterday twelve to two. The Mets also won two of three over the weekend at City Field. They beat the cub six to two, Eighthenny Homers by, Francisco Lindor and Brandon Neimo. Red Sots won three to one. Of Kansas City Nationals lost to Saint Louis six to one. Rare went for Colorado,
improving to seven and thirty three. It came after the firing of Bud Black, the Rockies manager the past nine years. Colorado on Saturday lost to San Diego twenty one to nothing.
John stash Ellen Bloomberg Sports, Lisa and Napan.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business opp This is Bloomberg Day Break.
Good morning, I'm Nathan Hagar. With markets back in rally mode. This morning is the US and China have a need to cool off their trade war for ninety days. Treasury Secretary Scott Besson says both countries will lower tariffs on each other by one hundred and fifteen percent. He made the announcement after two days of talks in Geneva.
The consensus from both delegations this weekend is neither side wants a peak.
Cup point Treasury Secretary Scott Besson, speaking alongside US Trade Representative Jamison Greer in Geneva this morning. Joining us now is Bloomberg News Senior editor Derek Wallbank and Derek. Given the fact that President Trump was talking about eighty percent tariffs on China seeming right before these talks r underway, now with the tariff right getting lowered to I guess thirty percent seems to be a lot more than the market was expecting.
Good morning, Good morning, Nathan. Yeah, it was a very large upside surprise. Remember Trump talking about eighty percent was on the high side. There were also signals coming out of the negotiating world that you know, we're hearing some things about sixty percent or something like that. In conjunction with these talks. Trump's at eighty. You know, that's well more than thirty. So it is a pretty substantial beat. I guess you would say on that it was much
better news than I think people were anticipating. You've seen the markets reacting. This was not a number that was priced in in any way. It is a ninety day reprieve. The Chinese side did a similar gesture. They both took down the main tariff lines by about the same amount, so that leaves the US with thirty percent in China with ten. The other thing I'd flag here, Nathan, is that there were signals in the press conference on the US side afterwards that there could be more to come.
The Greer and Bescent were asked about the fentanyl tiede levees at the twenty percent that makes up a part of that thirty and the indication was is that talks on that issue we're progressing as well. So there is a possibility that there could be further reductions if things go well. What a difference we are in right now from where we were just a month ago.
So let's get into that.
This is a possibility of more movement on fentanyl. Ninety days are I guess underway now? What more can we expect over the next ninety days to try to bring this to some kind of resolution.
Well, Nathan, there's an awful lot of uncertainty, and one of the things is what is going to be enough to make a deal a longer lasting deal. Scott Besson said walking into these negotiations that this was about de escalation and setting things up on a pathway to which you could negotiate an agreement. So certainly that is done reasonably successfully if you're looking for a de escalation. What it's not clear yet is what the US got for this.
You know, Trump had put on the tarasee said that there are all sorts of things at stake with the US trade deficit. There had been concerns that China had not fulfilled all of its obligations under the trade deal made in the first Trump administration, and so we're still going to be waiting to see what the US side gets out of that. Certainly, this is a lot of sound and fury, and you want to see what the accomplishments were for that. Those details, you know, will will
remain to be seen. But certainly this is positive news toward the idea of de escalation, which is best and said ahead of time, is the precursor for talks on a deal.
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