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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.
The Big lift in Futures comes after President Donald Trump said he never had any intention to fire Federal Reserve Chair j Powell. The parent walkback comes days after the President posted on social media that Powell's termination quote cannot come fast enough, and his National Economic Council director told reporters that Trump was exploring whether he had the authority to remove the FED chair, But when asked directly yesterday if he wanted to remove Powell, President Trump had this to say.
Never did the press runs away with things now? I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest Rate's just a perfect time to lower interest rates. If he doesn't, is at the end to no, it's not.
The Fed has kept interest rates unchanged this year, after lowering them by a full percentage point in the last few months of twenty twenty four.
Well, Nathan, The apparent easing of White House pressure on the Fed comes as President Trump indicates a willingness to dial down tariff tensions with China. He told reporters he plans to be very nice to China and any trade negotiations, and that tariffs could be reduced if the two countries reach a deal.
One hundred and forty five percent is very high, and it won't be that high.
Not going to be that high. It got up to there.
We were talking about fed and all where you know, various elements built it up to one hundred and forty five. No, it won't be anywhere near that high. It'll come down substantially, but it won't be zero. Used to be zero. We were just destroyed. China was taking us for a ride, and it's not going to happen.
And top Chinese officials, including the Central bank governor and finance minister, are in Washington for World Bank and IMF meetings this week.
In Beijing, Karen China says the door is wide open to trade talks. A Foreign Ministry spokesman says China's pointed out early on that there are no winners in tariff and trade wars. Chinese President she Jinpink says they undermine the legitimate rights and interests of all countries and hurt the world economic order. China's official Shinwa news agency says she made those comments during a meeting with the President of Azerbaijan on Nathan.
The International Monetary Fund is slashing its global growth forecast and is warning that trade war could spark even more economic pain. The IMF now expects global GDP to grow by just two point eight percent, versus its previous estimate of three point three percent. IMF's Managing Director Christelina Georgiaeva told Bloomberg, the risk of a global recession is growing.
If we have this cloud of uncertainty coming lower and lower, making it difficult for the business community and for households to take decisions, we could have a self inflicted injury that I guarantee you we would regret.
Managing Director Kristallina georgia Yeva and the IMF cut its growth outlook for China and the US by more than most countries and.
Karen Elon Musk says he plans to keep advocating for President Trump to pull back on tariffs, but he says the issue is entirely up to the President. Musk says tariffs are impacting TESLA, but not as much as its competitors.
We are I think the least a company, the least affected car company with respected tariffs. We do have localize supply chains in both America and Europe and China. So that's that puts us in a stronger position than any of our betters.
And most comments came on the Tesla earnings conference call, but it was the billionaire's remarks about his future work with a government that has the stock on the rise this morning.
Starting probably in next month, may my time allocation to dose will drop significantly. I'll have to contin you're doing it ball. I think we apply the remainder of the president's term. Just make sure that the waste and fraud that we stop does not come roaring back.
And jeers Ah Tesla are up six percent in early trading, this despite the evmaker reporting first quarter earnings below estimates.
All another big tech companies making news Karen job cuts are coming to Intel. We have more on this exclusive story from Bloomberg's John Tucker.
John, Good morning, Nathan. Intel plans to announce cuts to more than twenty percent of the workforce, that's about twenty two thousand workers. This as part of the Silicon Valley based company's first major restructuring under the new CEO, Lipboo Tan Tan, who took over at March, wants to streamline management and re establish Intel's engineer driven corporate culture. He previously announced the struggling chip giant would sell its majority stake and it's altera business, and so he intends to
spin off some of the Intel non core business. It's all part of the turnaround efforts there. Intel has fallen behind its rivals at producing ai AI chips. It also faces the effects of the Trump administration's trade war with China. They do report earnings tomorrow. Intel shares have slid nearly twenty percent of the past month. They're down forty three percent over the past year. At pre market. The shares right now up over three percent in New York. I'm John Tucker Bloomberg Radio.
All right, John, thanks, we'll ever see. Shares of SAP are up almost ten percent. Europe's most valuable company reported first quarter earnings that top analyst estimates. The German software company says profit was fueled by its pivot to cloud services.
It's pivot back here to the US Karen as the standoff continues between the Trump administration and Harvard University over more than two billion dollars in federal funds. The nation's oldest university sued this week to unlock that money, saying the government made unconstitutional demands to overhaul Harvard's governance, hiring,
and diversity programs. Former Harvard president Larry Summer says the university does need to change its approach to anti semitism, but he hopes cooler heads prevail.
I think there's a risk on both sides. I want to make sure that Harvard does carry through with necessary reform, but Gush, we can't have the government ordering universities around in violation of all the processes that are prescribed by law.
Former Harvard president and current Bloomberg contributor Larry Summers says the government should recognize Harvard's making changes and keep the money flowing through that process. Summers was a guest on Bloomberg's Wall Street Week.
It's 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. A solemn procession brought the body of Pope Francis to Saint Peter's Basilica this morning. The Pope's body will now lie in state. Heads of state are expected for the funeral Saturday in Saint Peter's Square, but the three days of public viewing are largely for the faithful to mourn the eighty eight year old pope. Sister Jeanette Godett is a spiritual leader who served under the Pope in Rome.
He was somebody that I will never forget because he was so personal and funny, personal and funny and full of joy and hope.
Francis died Monday after suffering a stroke. Health and Human Services Secretary Robert F. Kennedy Junior questioned the need for all children to get COVID shots amid reports that the US government is considering revoking its current vaccine recommendations. Kennedy says President Trump doesn't believe that anybody should get mandatory vaccines,
and people should make that choice for themselves. His comments come after Kennedy announced earlier a government campaign to face out petroleum base dies from the nation's food supply, saying it makes children sick.
They want to eat petroleum. They ought to add it themselves. At home, but they shouldn't be feeding it to the rest of us.
The move will trigger changes and scores of products on grocery store shelves. Crews are battling a forest fire in southern New Jersey. It has shut a stretch of the Garden State Parkway, sparked evacuations and threatens to snarl commuters. The fire has grown to eighty five one hundred acres, with three thousand residents evacuated, inching closer to the Oyster Creek Nuclear power plant. This resident says he felt helpless as flames and smoke spread out.
I said, they progressed. It was kind of scary. You know, you didn't know exactly what was going to happen for you leave, Should you stay? What should you take with you?
The fire is only ten percent contained. Finally, opening statements are scheduled for this morning in New York in former movie mogul Harvey Weinstein's rape retrial. It will be with a majority female jury with seven women, five men, and six alternate jurors. Weinstein, who is seventy three, is pleded not guilty and denies any rape or sexual assault. Global News twenty four hours a day and whenever you want it with Bloomberg News now him Michael Barr, and this is Bloomberg Carrot.
All right, Michael Barr, thank you. Time now for the Bloomberg scores update, and here's John Stanshauer.
John, good morning, Good morning, Karen.
I hopes for the Mets this season. Made it the last year's NLCS. Then added one Soto who has not broken out yet, but the Mets pitching has been outstanding. At two point three seven, they've got MLB's lowest team era and the Mets keep winning that city field. Now eleven and one, they beat the Phillies five to one. This time it was Griffin Cannon working five strong ginnings four relievers then heard four scoreless, allowing only one head. A little payback for the Cleveland Guardians who lost last
year's ALCS to the Yankees. They scratched across three runs. Sixth innings beat the Yanks for the second night in a row, three to two. Red Sox beat Seattle eight to three, National seven nothing over the Orioles. Home teams one of the NBA Playoffs, Indiana and Oklahoma City, both of them have two nothing series leads. The Lakers got thirty one points a near triple double from Luka Donciic won a low scoring ninety four to eighty five game of Minnesota. That series tied at one. The Devils are
banged up for their series with Carolina. They scored first about Formingu's end of the Hurricanes, who won Game one four to one, took Game two three to one, also winning the Stanley Cup playoffs Florida, Minnesota and Toronto in overtime. The NFL Draft agains tomorrow night in Green Bay, and the Tennessee Titans have confirmed they are not trading the first overall pick unless everyone is wrong. They're taking quarterback cam Ward Cleveland. Pick second may well take Colorado's two
way star Travis Hunter. He plays wide receiver and cornerback. If the Browns don't take him, the Giants might with the third pick. Here's Giants coach Brian Daboll on Hunters.
Well, it takes a long time to evaluate him because there's a lot of tape. It's a really remarkable what he has done and the ability to perform at that level, not really getting arrested.
The Patriots have the fourth overall pick. The Jets have the seventh. John Stashawain Bloomberg Sports nan.
Coast to coast on Bloomberg Radio nationwide on Serious Exam and around the world on Bloomberg dot Com and the Bloomberg Business Appum, this is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump appears to be softening his tone when it comes to the FED and China. With both the US and China leveling triple digit tariffs against each other, the President now says he plans to be very nice in any negotiations.
We're doing fine with China, We're doing fine with every I think almost every country. Everybody wants to have involvement with the United States.
And that was President Trump speaking in the Oval Office this morning. We were joined by Bloomberg News Senior editor Derek Wallbank. So there we heard the President, Derek saying he plans to play nice, not just with China but other countries. But where do things stand substantially when it comes to the trade dispute between the US and China.
Good morning, Good morning, Nathan. Let me end underline the word that you said, substantially, right, because it's different than sentimentality. We've seen a little bit of a sentiment uptick in markets following not just the China trade remarks, but also the remarks that Trump made about not wanting to fire Jay Powell. On the trade side, it's nothing has changed
on the substance right now. What you've gotten is a sort of underlining from the President of something that I think he and his team had had been sort of marking, which was that the China tariffs right now are intended to be at their high water mark, and that provides a certain amount of security against potential downside. Additionally, he's also sort of talking up the idea that they would like to get a deal. But let's stress here, while there are plenty of options to begin them, there are
no current high level between the US and China. And indeed, when we're talking about easier deals to make, you would think easier deals anyway with top allies, be that Japan, be that the United Kingdom, be that Israel, whoever you might want to put into there, we still have not seen the first of those deals actually come to fruition. So the idea that China, which would be hypothetically a lot more fraud, the idea that we might be coming
down anytime soon because a deal might be signed. There's not necessarily talks in the works yet, so all of that feels a little bit preliminary.
And there's still a question, isn't there, Derek, about what the president wants out of a trade deal with China. We've heard a lot of different commentary about what the end.
Goal is here or with anyone. Really, It's one of the things that I think a lot of nations are trying to ask themselves right now is what does the US want? What is the full scope of demand, and what are the key points that they really need to insist on. You know, we got some we got some clarity with the UK that there may be asks, chiefly around agricultural imports about you know, certain specific tariff lines,
you know, autos, things of that nature. And you know, we've heard from Trump say in certain other cases, you know, he's mentioned automobiles again or another example, uh with Japan, and he's mentioned agriculture and other settings. But what exactly that other that that whole thing looks like that will get a deal done? Very much remains to be seen.
You know, you look at Israel pulled off a lot of the tariff barriers that they had on the United States, before Trump's Liberation Day announcement and got hit with a seventeen percent levy. Anyway, it's hard to kind of see exactly where the frame of these deals are. Though at some point this rhetoric is where, you know, we're in a ninety day window. At some point the rhetoric has to turn to reality to keep up this sentiment uptick.
And the rhetoric around the FED is that the President says he never had any intention of firing Jay Powell. There's the question about whether he could do that, but he's still talking about wanting to lower interest rate. So where is the pressure on the FED in our last thirty seconds?
Well, I think, Nathan, the pressure on the FED comes into the fact that Donald Trump believes he has a First Amendment right to say exactly what he wants on the FED, and he is going to continue doing it. He is going to use that megaphone to say exactly what he wants out of the FED right now. What he wants his lower rates, He wants them now, he wanted them before, but he really wants them to go
now as quick as possible. And look, even if j. Powell's job seems safer right now, he's still going to hear from the President about exactly what the President thinks he needs to do.
This is Bloombergy Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. 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 Ray