Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the latest on the trade wars. President Donald Trump is promising to press ahead with his plans for aggressive tariffs. He says there will be no extensions to the August first deadline for higher import rates. That's after he said he was not one hundred percent firm on the new date earlier this week.
It wasn't a change, it was August first. We don't change very much. You know, every time we put out a statement, they say he made a change. I didn't make a change. Clarification maybe.
And at his latest cabinet meeting, heard live here on Bloomberg Radio, President Trump said he will impose a fifty percent tariff on copper products entering the US, and he floated even higher rates on pharmaceuticals.
We're going to give people about a year a year and a half to come in and after that they're going to be tariffed. If they have to bring the pharmaceuticals into the country, drugs and other things into the country, they're going to be tariffed. At a very very high rate, like two hundred percent.
Despite progress with the European Union, President Trump says he may announce a new tariff rate on the block within the next two days due to their taxes and fines on US tech firms. The President says at least seven countries could find out their trade status in letters later this morning.
Nathan Meanwhile, Treasury Secretary's Scout Besson says the tariff hikes are bringing in big money to the US. He also spoke during the cabinet meeting.
We will take it in about one hundred billion dollars in tariff income thus far this year, and that's with the tariff the major tariff not having started toil the second quarter, so we could expect that that could be well over three hundred billion by the end of the year.
Treasury Secretary Scott Besson says a major jump in tariff collection will start on August first, when new tariff rates take effect.
Now, let's turned to the latest on the disaster recovery in Central Texas. Karen search crews continue to slog through thick mud and looking for any survivors of the catastrophic flooding along the Guadalupe River, Texas Governor Greg Gabbott says one hundred nine people are confirmed dead and at least one hundred and sixty one may still be unaccounted for. The Hearts of our fellow Texans are breaking every single day because of what people of this community and the
surrounding area are going through. Governor Greg Gabbott toward the disaster zone yesterday, Texas Game boardens say their crews have searched more than twenty six river miles with helicopters, drones, boats, and canine units. They say their team alone saved about four hundred and forty four people and recovered thirty bodies. President Trump plans to visit the area on Friday.
Nathan. The US will start charging interest again on student loans. The Education Department says we'll begin collecting from an estimated seven point seven million borrowers who've been in legal limbo since a repayment plan created by former President Joe Biden was blocked in court interest charges for people enrolled in the Saving on a Valuable education or saved. We'll begin on August first.
Turning to markets, now, Karen Apple is losing more talent. Let's get the latest with Bloomberg's John Tucker. Who's leaving now, John.
Well, it's Apple's number two man, the chief operating officer, Jeff Williams. He's retiring, but he's sixty two year old. Williams was once considered a possible successor to the CEO, Tim Cook. So b Cohn will replace Williams as CEO, while Apple's design team that's going to shift to reporting directly to the CEO Tim Cook. At Apple, Williams was known for crafting a supply chain that can handle hundreds of millions of devices a year while sourcing components from
thousands of suppliers around the world, a huge job. This marks a major changing of the guard at an already tumultuous time for the iPhone maker. Yesterday we told you about the departure of Rooming Peng, a distinguished engineer and manager in charge of the Apple Foundation Models team. He's headed to Meta in New York. Ime, John Tucker, Bloomberg Radio.
All right, John, thank you. It was a disappointing first day of prime sales, and that helped lead to a drop of one point eight percent and Amazon shares momentum commerce as sales fell almost fourteen percent in the first four hours of the event compared to the same time last year. Bloomberg Spenser Soaper says, there is one major change this year.
It's a four day event this year, you know, as opposed to two days. So it's still interesting to see that out of the gate it was soft. But they've spread this over four days now. So the question is is there less of a sense of urgency among shoppers, like, Oh, that's a good deal, I better buy it now before we run out of time.
Bloomberg Spencer Soaper says Amazon launched Prime Day and twenty fifteen to attract new subscribers who pay one hundred and thirty nine dollars a year for shipping, discounts, video streaming, and other benefits.
And another Tech news Karen OpenAI chief executive officer Sam Altman says he has not yet spoken to Mark Zuckerberg since the meta platform CEO poached some of his top engineers. Altman talked about it with reporters at the Sun Valley Conference Idaho.
I think we have.
An incredible I mean, obviously have an incredibly talented team, and I think they really love what they're doing. Obviously, some people will go to different places. There's a lot of excitement, I guess we could say in the industry.
Open Ai chief executive Sam Altman says Meta offered people as much as one hundred million dollars to jump ship. He says he expects a meeting with Zuckerberg at the Allen and Company gathering this week.
Nathan Sources tell Bloomberg that's SpaceX is discussing plans to raise money and sell insider shares and a deal that would value the company at four hundred billion dollars. Begin more from Bloomberg Technology reporter Ed Ludlow.
Right now, the share price being discussed is two hundred and eight dollars to two hundred and twelve dollars. There's still a little way to go. It could change, but it's quite a jump from the last valuation that we reported of three hundred and fifty billion dollars. Part of that reflects, of course, not just space exits position in dominating commercial launch, but the Starling component as well.
And Bloomberg Technology reporter Ed Ludlow says this would mark the largest valuation for a privately held US company.
And Keren we may have a big deal on the way in the drug industry, The Financial Times is reporting Merks closing in on a ten billion dollar acquisition of respiratory drug maker Verona Pharma. The paper says Mirk would pay one hundred and seven dollars per American Depository share for the biotech company. That's a twenty three percent premium to yesterday's closing price.
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 and Michael Barr. Michael, good morning, Good.
Morning, Karen. After nine days, there is late word of a settlement in the city workers' strike in Philadelphia.
Ask me.
District Council thirty three has been fighting for better pay. Meanwhile, the strike may be over, but across the city at many of the sixty plus trash drop off sites, the mixture of rainy conditions over the long weekend and heat left a massive smelly headache. Residents have to walk past the mountains of garbage at night.
The trash is well real bid and this fission there or of crabs in there is kind of like a bed owner.
On top of sanitation workers. DC thirty three represents employees across multiple city departments, including police dispatchers and maintenance workers at Philadelphia International Airport. President Trump says that he is not happy with the Russian president Vladimir Putin over the
ongoing strikes in Ukraine. This comes after reports that the Trump administration, specifically the Defense Department, was going to pause a weapon shipment to Ukraine, but the President refuted that and said he wants to send more weapons to Ukraine. Reporters asked the President about legislation champion by Republican Senator Lindsey Graham to sanctioned Russia.
Further, it's an optional bill.
It's totally at my option.
They passed it totally at my option, and to terminate totally at my option, and I'm looking at it very strongly.
It comes as Russia launched more tacks today on Ukraine. Los Angeles Mayor Aaron Bass has joined legal action against the Trump administration, calling the immigration raids in her city unlawful and designed to instill fear. Pass said the mapped ice agents grabbing people off the street could be anyone.
Aside from the fact that this is unconstitutional, how do we know the difference between this and the kidnapping.
Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update. Here's John stash Hour, John.
Good morning, Good morning, Karen.
After a day off, but followed playing each other, Mets and the Yankees, who've both been slumping the past two weeks, both had victories. Easy for the Yanks at the Stadium, a five runs sixth inning with John Carlos standing in a three run homer, Austin Wells a two run shot. He's Howard in three straight games, and then in inning later four more runs with Aaron Judge hitting home run number thirty four.
Yanks all loibil the Mariners ten to three.
Needed the win because Toronto beat the White Sox six to one. Of the Blue Jays have won ten games in a row, they stay three and a half games ahead. A dramatic win for the Mets, their biggest comeback of the season. In Baltimore, they were down six to two in the eighth inning, two run homers by Francisco Lindor and Pete Alonzo to tie the game, and then Juan Soto with a game when he hit tenth inning to
beat the Oriel seven to six. Of the Metster back into a tie for first with the Phillies, who lost to the Giants four to three in San Francisco. Patrick Bailey wanted on a walk off inside the park home run tenth inning Red Sox over the Rockies ten to two. The Nationals under new manager Miguel Cairo, lost in Saint Louis four to two. The Dodgers lost their fifth in a row three to one at Milwaukee. Mike Brown introduced as the knicks thirty second coach in team history and grateful to get the job.
Talk about historic franchise, Madison Square Garden Tychonic are fans that are the most knowledgeable and passionate probably in all of sports.
A lot of those fans were wondering why the Knicks fired Toime Thibodeau after the most successful season a twenty five years. They'll be rooty for Brown to take the team a little bit further in the playoffs and wimbled. Then they'll wrap up the quarterfinals.
Today.
Jonnick Center the Top Scene taking on the American Ben Shelton, John Stasheward, Bloomberg Sports count Ethan coast to coast on Bloomberg Radio nationwide on Serious Exam and around the world on Bloomberg dot Com and The Bloomberg Business Apple.
This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
President Donald Trump appears to be holding firm now to his new deadline for countries around the world to reach trade deals with the US.
August first, they pay, and everybody pays. Everybody has to pay. And the incentive is that they have the right to deal in the United States. If they don't want to, they don't have to pay, and they don't have to deal.
Here.
I was the President speaking in a cabinet meeting heard live on Bloomberg Radio this morning. We're joined by Bloomberg News Senior editor Bill Ferries. Of course, Bill, just a couple of days ago, the President said he wasn't one hundred percent firm on the August first deadline. Now it sounds like things may be firming up.
Good morning, Good morning, Nathan.
Yeah, I mean it's basically a three week additional extension, right, so a lot can happen in that time. I mean, I think three weeks in the current universes is a very long time for further negotiations and other deals to be made. I mean, this all goes back to April. Now, April second was Liberation Day. That was when tarifs were coming into place or announced, and then it was kicked to July ninth. Well, we're at July ninth, and now
it's August first. So the markets, I think yesterday we're betting that maybe Donald Trump wouldn't hold too firm on that deadline, and I think he woke up to that news on Tuesday and wanted to squash it. But I think we'll only know for sure when it's August first.
On the other hand, we did see a pretty sharp reaction in the copper market when the President said he could float fifty percent duties on copper products entering the US.
What could that mean for that market?
Well, it's interesting because the President first talked about tariffs on copper back in February, and ever since then, you've seen traders directing more copper into the US into inventory, really stockpiling that the US still needs I think about forty percent of its copper demand to be imported, so it's it's not going to be self sufficient for a very long time. And I mean we're talking about you know, everything from you know, car batteries to just basic industry
that needs needs copper to function. So there's going to continue to be a dependence on imports for that for probably the you know, several years ahead. So I think I think that's a potential inflation early inflation indicator there if we do hit that fifty percent tariff in August.
Now on top of the twenty five percent tariffs you've already heard about for steal and.
Aluminum as well.
And then there's this talk of up to two hundred percent on drug companies if they don't onshore into the US in the next year or so.
How serious to take that?
Yeah, I mean it's something pharmaceuticals has been a focus for this president. He wants to see more of the pharma industry back inside the United States. Two hundred percent would be huge, of course, if you know, particularly if it's the you know, the drug that you need for
your particular illness, that would be a huge cost. So he did, he did put out there the idea that it could take a year, a year and a half or so before that would go into effect, he'd want to see the pharma companies building their production facilities in the US shifting production over here.
So there's a little longer of a.
Runway on that kind of a change, but it would certainly be a major disruption in the market.
I mean, are those the kind of things though that could affect the ongoing country by country trade negotiations that are happening. When you think about the pharmaceutical industry in particular, a lot of those companies are based in the European Union, and there's supposed to be some kind of announcement about the EU. Were thinking this week, still, isn't there.
Yeah, the administration has said, you know, maybe within the next two days we'd have some sort of a framework deal with the EU. The EU, of course, was facing up to a fifty percent tariff. What we know from our reporting is that negotiators have really focused on some
key sectors that they want to get carveouts for. So that would include things like aerospace with Airbus, it would include German automakers like BMW and Mercedes who have factories in the United States, And it would include things like alcohol shipments on the EU. So it's that's you know,
that just gives you a taste. I think of the number of exceptions that might be coming through when we announce a deal, but there will be quite a few products if it stays at the current levels that get hit with a fifty percent tariff.
So in our last thirty seconds bill, what should we be looking for in the next few days here? I think we heard the President say of several countries could get letters like we've seen this week.
Later on this morning, Yeah, they said up to a dozen more countries could be getting letters. I think you know you mentioned the EU. I think we're also looking to see what the status is with India. That has been a priority for the administration, and that's one that we haven't heard a lot about. So that's that's the next one on my list.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or manywhere else you listen.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York. Bloomberg in ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide on serious XM Channel one twenty one.
Plus.
Listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Atto interfaces.
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 and 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 Daybreak