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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 begin with what appears to be a major security breach within President Trump's inner circle. A prominent Washington journalist, Atlantic Editor in chief Jeffrey Goldberg, says he was included in a high level text thread about plans to bomb Hoo they targets in Yemen hours before the operation was carried out. Goldberg wrote a thirty five hundred word piece about it in the Atlantic and discussed it with ABC News.
I get a message request to connect with Mike Waltz, who's a national security advisor or someone who's purporting to be Mike Waltz. Not an unusual thing in Washington. I'm a journalist. I've met him in the past, so I accept it.
Jeffrey Goldberg says the chat on signal included operational details from Defense Secretary Pete Hegseth, including information about targets, weapons, and attack sequencing. It also revealed some of the Trump administration's internal power dynamics. At one point, Vice President JD. Vance signaled he opposed the strikes, only to be shot down by an account labeled sm Apparently White House Deputy Chief of Staff Stephen Miller.
Well Nathan the White House National Security Council says the text chain appears authentic and they're reviewing how an inadvertent phone number was added to the signaled chat. Defense Secretary Pete Hegseth says national security was not put at risk.
I've heard it was characterized nobody was texting war plans, and that's all I have to say about that.
Defense Secretary Hegseeth spoke to reporters in Hawaii, and the White House says President Trump has utmost confidence in his team, including National Security Director Mike Walls. But the breach has Democrats in Congress calling for hearings, including Colorado's Jason Crowe.
The House Intelligence Committee has our Worldwide Threats hearing on Wednesday, and you bet there's gonna be a lot of questions about this.
Well, it still remains to be seen what will actually happen in Congress. If anything, we get more on that from Bloomberg New Senior editor Derek Wallbank on.
The political side, is going to put Congressional Republicans in one world of a mind, because they have so far in the second Trump administration not had any appetite really at all to try and check the White House, as the White House has gone about doing exactly what it wants. Remember, Republicans have unfettered control of Washington just about and all of the Congressional committees that would lead potential investigations into
something of this nature are run by Republicans. At the same time Democrats are braying for consequences, they see an opportunity to move on to the front foot politically after being really on the back foot for the entirety of this administration to date.
Bloomberg's Derek Wallbank notes even harmless leaks and other agencies have led to investigations in the FBI or from Inspectors General Nathan.
Futures are lower after yesterday's big gains on Wall Street. Stocks registered one of their best sessions of the year, with the Nasdaq one hundred adding two point two percent. Amid signs US trade sanctions will be narrower than feared, President Trump also hinted that he may give some countries a break on impending reciprocal tariffs. We may take less than what they're charging because they've charged us so much, I.
Don't think they could take it.
In other words, they've charged us so much that I'm embarrassed to charge them what they've charged us.
But it'll be substantial and you'll be hearing about that.
On April second, intermarkser here on Bloomberg, Trump did say he will announce tariffs on automobile imports in the coming days.
Now, the latest stun efforts to end the war Ukraine, karen Us and Russian officials held twelve hours of talks in Saudi Arabia yesterday, and the two sides are expected to release a statement detailing their progress. Ukraine's President Vladimir Zelenski says strong measures will be needed to keep Russia on the path of peace.
We need a movement towards real peace, towards guaranteed security, and we all need this in Ukraine and Europe and America, everyone in the world who wants peace and international relations. Russia is the only entity that is dragging out this war and mocking our people and the whole world. And to pressure Russia towards peace, strong things, strong steps are needed.
It was Ukraine's President vladimir's Alenski, speaking through an interpreter. Zelenski and President Trump still have not signed a pact to give the US part ownership of Ukraine's natural resources.
Well, we turned to the economy now, Nathan, and the head of the Atlanta FED, Rafael Bostick tells Bloomberg's Michael McKee that he sees just one rate cuttage likely this year rather than cho with tariff's impeding progress on disinflation.
So I was a too. I moved to one mainly because I think we're going to see inflation be very bumpy and not moved dramatically and in a clear way to the two percent target, because that's being pushed back. I think the appropriate path for policy is also going to have to be pushed back and getting us to that neutral level.
And Atlanta FED chief Rafael Bosstik now sees price growth returning to the Fed's two percent goal one point in early twenty twenty seven. Here the full conversation on the Bloomberg Talks podcast feed, or watch it on the Bloomberg Podcast page on YouTube.
In company news, Karen Bowing reportedly wants to withdraw its deal with US prosecutors to plead guilty to misleading regulators prior to two deadly seven thirty seven Max crashes. The Wall Street Journal is reporting the Planemaker is pursuing the maneuver in a bid for potential leniency from the Trump administration, which is reviewing pending white collar criminal cases on.
The battle for electric vehicle supremacy. Nathan and China's b whyd's sales last year leapfrogging elon Musk. Tesla BYD's sales last year surpassed the one hundred billion dollar mark, beating Tesla by more than two billion. Still, ARC Investment Management's Kathy Wood remains bullish on Tesla. She spoke with The Bloomberg at the HSBC Global Investment Summit in Hong Kong.
Within that Drogo taxis will account for ninety percent of the value of the company in five years, and we're on record on record saying we believe in in five years the stock will hit twenty six hundred dollars.
If Tesla hits Kathy Wood stock price, that would be about ten times more than its current price. And 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. The Trump administration is challenging the court order by a federal judge that aimed to halt the deportation of Venezuelan migrants to El Salvador. Yesterday, a DC Circuit Court of Appeals heard their case. Judge James Boseberg's order was not followed by Trump administration officials, and hundreds of migrants are at a prison in El Salvador. The Trump administration claimed it was justified to porting the migrants
because of gang affiliations. During the hearing, one of the judges on the three judge panel, Patricia Millet Grill DOJ Deputy Assistant Attorney General, drew insane.
People weren't given notice, they weren't told where they were going. They were given Those people on those plans on that Saturday had no opportunity to file habeas or any type of action to challenge the removal under the AEA. And like you've agreed that two of those airplanes people were removed under the AEA.
Judge Millard went on to say Nazi's got better treatment under the Alien Enemies Act. The United Nations says it will lessen its presence in the Gaza strip. The move following an Israeli tank strike that hit one of its compounds last week, killing one stafford from Bulgaria and wounding five other employees. United Nations spokesperson Stefan du Jark.
The Secretary General has taken the difficult decision to reduce the United Nations footprint in Gaza, even as humanitarian needs sore and our concerned over the protection of civilians intensifies.
Meanwhile, Al Jazeera says an Israeli airstrike killed on its journalist in Gaza. Monday today marks Equal Payday. It symbolizes how far into the year a woman must work to earn as much as a man earned in the previous year. On average, the wage gap is even greater for women of color and disabled women. The gender justice nonprofit Equal Rights Advocates says that it's widened last year, and it warns that it could get even worse as Trump administration
officials try to strip away protections from workplace discrimination. National campaign director Deborah of Agents, we.
Are pushing back on the administration's gutting of civil rights enforcement agencies, the very agencies that protect us from implant Discrimination.
National Campaign Director Deborah Veagan says women earn about seventy five cents on the dollar when compared to all men. Global news twenty four hours a day and whenever you want it with Bloomberg News Now Michael Barr, and this is Bloomberg.
Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by Tri State Outie. Here's John stash Hour, John, good.
Morning, Good morning Caring. It's a race to the finish of the NHL regular season for the last playoff spot in the East. As it now it belongs to Montreal, with the Rangers and Islanders right behind. Canadians at seventy five points have a game tonight in Saint Louis. The Rangers at seventy four. They begin a three game California trip tonight in La. The Islanders are at seventy four. They hosted Columbus at leeds of two nothing to three
to two, lost four to three in a shootout. The Devil's also at home, also lost four to three in a shootout to Vancouver. The Nets at Berkleys lost to Dallas one twenty to one oh one. The MAVs are at the Garden tonight to face the Knicks, who are hoping to get Jalen Brunson back soon for the sprained ankle, and the Celtics win at Sacramento, Jason Tatum sprained his ankle the NCAA Women's turning the star player for top seed at usc Juju Watkins tore her acl She averages
twenty five points a game. The Yukon Star page. Becker's t had a career I thirty four points in the huskies easy win. The Mets after a game with the Yankees in Fort Saint Lucy, now off to Houston for Opening Day Thursday. One Sodo's got a fifteen year Mets contract, Excited to start his first season.
See, we have a really tied the group.
We have a lot of guys.
We have a lot of hotfielders, we have a lot of anfielders.
So I think we are.
Really loaded as a team.
Can't waiting to see these guys that is going out there.
Definitely, we have to go through some fat cities and the spring training and so dealing with some injuries and stuff like that, but I think we're going to be fine.
The Yankees finished the Spring Today in Miami, then come home for Thursday's opener with Milwaukee John Stashaward. Bloomberg Sports carry neither.
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Good morning. I'm Nathan Hager, and the White House appears to be in damage control after Atlantic Magazine Editor in chief jeff Free Goldberg posted a lengthy story saying he was included in a high level text chain about plans to attack the Houthis in Yemen. While the Whitehouse says the messages in Goldberg's story of pure authentic, Defense Secretary Pete Hegseth says, quote, nobody was texting war plans.
This is the guy the pedals in garbage. What he does.
I would love to comment on the hoothy campaign, and that was Defense Secretary Pete Hegseth commenting in Hawaii after this story broke in Washington, and we're joined now by Bloomberg New Senior editor Bill Ferries. Bill from what Jeffrey Goldberg is reporting in this lengthy story on the Atlantic website it is difficult to say if we have seen a breach like this before.
Good morning, Hey, good morning, Nathan.
Yeah.
Really just jaw dropping story there from Jeffrey Goldberg, just you know, giving insights into how this signal group was created and what they were discussing, not realizing that there was a journalist invited into the group with them, and Goldberg talks about how he wasn't sure if this was you know, a hoax and attempt at fishing temp against him or something else until he's sitting in the parking lot after hearing that strikes are about to be unleashed
on Yemen and he's waiting and waiting, and then goes on to Twitter to see the first reports confirming that basically everything he'd been seeing unspool on his signal app was true. So really shocking breach of security norms and also a huge embarrassment for an administration that has really kind of campaigned and tried to well. I was taken pride in what it says is it's you know, strong, strong position against security breaches.
I mean yeah, I mean it goes into the idea that the Pentagon has said it was going to go after leakers the last time there was I mean, there wasn't an incident like this. But when details about Elon Musk going to the Pentagon a meeting came out, Defense Secretary heg Seth came out and said that they were going to really go after the leakers. I mean, what could that mean for this message?
Well, it's gonna you know, I think we're still going to see the repercussions playing out, you know again, Yeah, this administration. You know, this is a president who faced charges of mishandling classified material at mar A Lago, who ran against Hillary Clinton years ago partly on criticism of her decision to use a private server. So it's been a part of their DNA to say that they're strong
on classification and protecting national security. And to see this happen with not just senior aids but really the most senior aides and Marco Rubio is on their Defense Secretary Pete heg Seth, Toulci Gabbard, the d and I it's just really stunning, and I think it raises a lot of big questions about has this happened before with other people who were inadvertently invited into chat group? Why are they discussing such sensitive information in a chat app like Signal.
I don't think it's any secret that Washington officials like to use messaging apps, but you typically do it for scheduling meetings and other kind of not top secret issues. To go into battle plans is something really we haven't seen before.
In the early moments here, Bill, we've seen sort of circling the wagons around National Security Advisor Mike Waltz, who Goldberg says invited him into this chat. But can we see heads roll over this, or at least can we see hearings over this?
I think for sure we're going to see hearings. I mean, just by a remarkable stroke of timing. You know, you have the heads of the intelligence agencies, including D and I Gabbert expected up on the Hill twice this week to talk about worldwide threats. But you're right, I think there's gonna be a lot of questions about Mike Waltz. I think the indications we're getting from the White House is that they're going to see how this plays out.
He's already lasted longer than Donald Trump's first national security advisor in his first term, Michael Flynn lasted but This is a huge breach by the person who's seen as supposed to be really the arbiter of the national security agencies for the White House.
Just thirty seconds left. Bill, What could this mean for information sharing among allies?
Yeah, I think it's going to raise a lot of questions among other countries about what they can share and with the US whether they can trust it. But the reality is other countries, even a European allies, they rely a lot more on US intelligence than the US relies on them. So it will probably still be in their benefit to share info, but I think it's going to raise some questions about how much they share.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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