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In the last hour, the US Supreme Court has struck down President Donald trump sweeping global tariffs in a six to three decision. CNN is reporting that the President has a backup plan and has labeled the decision a disgrace. If we get official comment from the White House or the President, we'll bring it to you live. Let's get to markets and to summarize the reaction when the headlines
hit equity search, particular tech, particularly technology stocks. You look at both the NASA one hundred in the Philadelphia Semiconductor Index, they've actually continue to push to session highs. Bonds fell, the dollar fell, particularly duration, looking at US ten year yield up a little more than two basis points at four point zero nine percent, but also in terms of duration thirty year as well.
On the move.
Let's get the key details and go to Bloomberg's a Marie Horden, who needs to also talk us through like the what happens. I'm looking at names like Amazon and Etsy pushing higher because this is about duties paid, right, and the next question will turn to refunds, but they'll start the beginning, tell us about the decision, tell us about the voting on the decision, and what we need to know.
What we see with the decision is six'. Three that was what the court.
Said that was the voting about striking down the use OF aipa to enact his tariff. Policies, NOW aipa tariffs have been used for about seventy five percent of where we are right now with The United states when it comes.
To tariff policies and.
Negotiations we have seen the entire year this administration take. On, Now Brett, cavanaugh in, dissenting was talking about the fact that this court does not outline how the rebates are going to, go and he actually said that probably is going to be a. Mess Supreme court is just deciding whether or NOT aipa was legal or not for reciprocal tariffs and for the use of the fentanyl. Terriffs they are not the ones that are going to be deciding
how the rebates. GO a lot of you already seen a lot of retailers companies line up at trade courts signing up to sue the administration basically to get those. Rebates if The Supreme court came down with THIS iepa, ruling which they did today saying that the, presidents which is for, him this was a paramount. Policy this was incredibly. Important it was really a key pillar for this. Administration
they're now saying this is. Illegal what comes, next ed is we've known this administration has had A PLAN, b whether or not It's Ambassador Jamison, Greer Treasury Secretary, Besston Peter, navarro they have all talked about the other avenues they can. Use So PLAN b includes also some of the sections we've already seen this administration use And trump has used also In trump One section two thirty two's things that have happened on commodities copper, aluminum Also section three toh,
One section one twenty, two and thirty thirty. Eight get used to hearing these. Names the issue with a lot of these other avenues is and some of them environ acquire, investigations and some of them have certain limits to how high the teriff rate could. BE aiba really was this, blunt flexible tool that the administration could. Use so now this is just going to create some potential hurdles when they are trying to enact the next tariff.
Policy so let's be clear This Supreme court decision voids The April Liberation day. Tariffs, right they range from ten to fifty percent fentanyl related. Duties they Impacted, Canada mexico And. China those tariffs did not affect those the, decision, sorry does not affect those under separate. Authorities and as you, note like that's why in the moment steel aluminum autos they're not covered by. This one other piece of breaking, news literally in the last ten minutes or, so is
we have some details of The president's visit To. China SO i wanted to give that context to the audience because, actually Like china was a big part of this story either.
Way, absolutely, so The president will be going To china Starting march thirty first Through april. Second that was going to be a visit he's been talking About he's going To. China but how awkward almost in a, way that The Supreme court strikes down HIS aepa terriffs when he has been using that authority when it comes To china and the tit for tat trade war we've seen Between washington And. Beijing,
now not all the terrorfs placed On china will. Evaporate AS i, mentioned there are two thirty twos And section three zho ones that are still being used when it comes To, beijing but some of those sky high levels when it comes to fentanyl and the reciprocal, rate, well
The Supreme court says that is. Illegal ALTHOUGH i have been talking to some of my sources abroad and some of these foreign officials who have been in the room with this trade team are talking about the fact that nothing really changes because for, them they understand the administration
has been preparing for alternative scenarios under three oh. One so not quite sure they're saying what happens with specific, companies but when it comes to the bilateral, relationships what they've gone is the same information we've, received which, is if The Supreme court decides to strike down our, tariffs we are going to make sure we enact similar policy
using other. Forms and one Individual i'm talking about is the fact that they are very well prepared for this administration to come back to them in the negotiating room and say we're going to do the same sort of tariff. Scenario we're just going to use a different, avenue and for them it's going to Be section three oh.
One we have not yet heard directly from The. President will bring that reporting when it. Comes but of course we Have state of The Union tuesday night that was supposed to be focused on the, economy And i'm sure now we'll look forward to. THAT bloombagx and Re horden on the breaking news, Decision thank you very. Much we should talk more about markets prior to that headline hitting
about The Supreme court decision ON iepah and. Tariffs, then as that one hundred was headed for its fourth straight weekly, decline its longest run of weekly declines Since march of last, year that has turned. Around equities continue pushing. Higher technology in the moment right now is outperforming at the index level as reaction to This Supreme court decision on, tariffs
while bonds and the dollar. Fell let's bring In Scott ladner for more C Io horizon twelve billion dollars of assets under, management who had planned to come onto the program to talk about the technology. Sector what was going on in? Software we need to react to This Supreme court. Decision what does it mean for? You what does it mean for your? Strategies what does it mean for the technology?
Sector, yeah look at, it and thanks for having me On this is always interesting when we get news like, this you, know right right before we go.
On but it's it is you, know this is this.
Interesting but there's just, look there is just like one part of the thing that we need to. Understand and you, know like now we have The Supreme. Court this was, expected you, know like let's be clear with. That you, know the market had priced in or sort of like understood that this was the most likely outcome from The Supreme.
Court but now we have to, understand, like what is it going to Be trump's reaction because there obviously will be a reaction not only in the you, know sort of the tweetstor That i'm sure is, forthcombing but but also from some of the policy actions that that you And marie were just.
Discussing you.
Know on top of, that we need to understand like what are individual, companies you, know how are individual companies is going to? React so you, know this is really just sort of the first ending of how this is
going to end up playing. Out BUT i do want to make one point at and that, is you, know if the market was convinced that this was sort of the end, game you'd see you wouldn't see technology leading today you'd see something like small caps and more of the cyclical stuff really sort of, leading and you see more of a reaction out of the long end of
the yield. Curve you, see you would you see ten years and thirty, year you, know probably up, ten fifteen to twenty basis points because of the you, know both taking a tax, away you know that sort of the positive growth impulse that would, imply and also the sort of the damage that this does to the to the to the budget. Deficit so you know, that you, know those things together would lead to a larger reaction in the bond market and the small caps that we're frankly
seeing right. Now so that's the that's the market saying we don't exactly know how this is going to end up just.
Yet some research and academic institutions have actually crunching numbers on. That So i'm going to pose your question That i'm going to jump into My bloomberg term and look up that data for it for it later on in this, conversation we're Showing amazon And etsy right both pushing. Higher think about what those companies do the duties that have been.
PAID a lot of this is.
Logical As amory outlined very, clearly a question for a lot of, companies including across the technology, sector is refunds that will go to the lower. Courts but you, know does this fundamentally alter the fortunes and projections for growth of some of those names E commerce being, One amazon And.
Etsy, LOOK i think it makes their operations a little bit more simple because you, know one policy tool that was really just at the whim of one individual, person that policy tool has been taken, away or at least at least at least it's not taken away then then blunted. Somewhat so it does increase the visibility and sort of the understandability of their operating. Environment so that is, helpful and that is you, know part of the reason why
you're seeing the reaction in some of those stocks. Today but we do need to see How trump is going to react to this and how the administration is going to react to. This you, know what is the counter to what The Supreme court just. Did so you, know these games makes, sense but in order for them to be, maintained you, know that's sort of future you know that you, know sort of the look through in the future about
how we're going to operate these. Companies needs to be a little bit more in cment Ess, man needs to be a little bit more dry than it is right.
Now so the data is just referencing in the blog comes from The Yale budget lab and without ER pa, tariffs consumers will face an overall average effective tariff of nine point one. Percent had those tariffs been left in, place it would be nearer to seventeen. Percent but your point on the, budget you, know in the long, run THE us economy will be persistently smaller a bit of
zero point one percent based on this. Decision and they're talking about the kind of shortfall and impact on, growth economic, growth trying to balance like what The treasury would have brought in from these tariffs versus, basically like In layman's, terms people being put off buying right because of higher higher cost. Pressures just try and cast us forward what you think happens next and any real impact on this market and this economy longer.
Term so, LOOK i, MEAN i think that you know there's one thing that is that is relatively, clear and that is this is a tax. Cut so you know that you know the tariffs are, taxes and and you, know at the end of the, day tariffs are going to be lower than they otherwise would have been had this decision not been ruled this. Way and so you, know at the, margin this is a tax Cit now what what we have to figure out is what does
exactly what does that does exactly look? Like you, know what sectors are most impacted, directly and how big is this is this ultimate tax cut going to end up? Being you, know so those are things that they're going to have topletely be played out in you, know not only the, market but in the courts, obviously but but but, ultimately this is a positive thing FOR us. Growth this is a positive thing for NOMINAL gdp. Growth it is
a negative thing for the budget. Deficits the, magnitude you, know so directionally we know these things that the magnitude is the thing that we're going to all have to sort of figure out over the coming, weeks and that magnitude will obviously impact you, know the ultimately impact on.
Markets all, Right Scott ladner s At.
Horizon thank, You and actually some news crossing The Bloomberg. Tunnel The European Parliament's Trade committee is going to meet On, monday to discuss A us trade. Deal the committee also will assess this trade ruling and its implications that's coming from THE, eu of, course a key trade partner in The United. States coming, up the battle for The Bugs bunny brand. Continues we're going to discuss the latest efforts to make a deal For Warner.
Brothers this Is Bloomberg.
Tech netflix CO Ceo Ted sarandos says the company's bid to Acquire Warner Brothers discovery will close even After warner reopen talks with Paramount. S, guidarce speaking With, Bloomberg serrando's accused its Rival bidder of spreading misinformation about the.
Offers what we.
Believe is in what The Warner Brothers discovery board agrees with us on as, well is that our deal is the superior.
Deal you believe it's good for, Them, no it's good for, us and we are EXCITED i did about getting it.
Done when you talk about kind of clarity and, certainty you, know one of the aspects of The paramount deal that they have stressed is, better AND i think some of The Warner brothers shareholders seem to agree or at least entertain it. Is you, know they're offering to buy the whole, company they will just take it out thirty dollars a. Share Warner brothers doesn't have to proceed with a spin.
Beforehand what is your argument for why your more complex deal is better for all those shareholders than just getting the cash.
Tomorrow this deal is not complicated at.
All is twenty seven to seventy five at plus the value Of Discovery.
Global by the, way it's the deal that they.
Want it is the deal that they ask for those these are the assets network for.
Sale so the more complex thing is buying the whole.
Company you do, that then you're buying These european sports.
Networks as you, know sports rights In europe are incredibly highly, regulated as is the television, landscape which may be stepping themselves.
Into SO i would argue that our deal is quite. Simple twenty seven to seventy five for, sure plus the.
Value Of Discovery, global and WHICH i think is an incredible, asset and they.
Do they do. Too that's why that they said that the offer up this. Way that's why when we were, bidding we bid for the assets that were for.
Sale If Discovery global is a great, Asset i'm just wondering have you guys talked about just buying the whole company.
And doing the spin.
Yourself as you, know we're the linear broadcast business is not something that we're interested, in but others.
Are AND i think WHEN i look at the, business particularly Those european.
Networks are are not in decline the way that some of the way they are in THE. Us so it is not of our, interest but it's Sure i'm sure of interest In.
Many buyers.
Said you are competing in a in a politically sensitive media. Deal there is reporting and and we are in a time where The ellisons are in their relationship to The trump administration has been. Discussed it's also, reported of course that that you met with The PRESIDENT i think On november twenty. Fourth how are you weighing that and assessing that in this, scenario that relationship Between paramount's leadership and.
This.
Administration, LOOK i have spoke to The president about the state of the entertainment.
Industry we've had multiple conversations.
About how do we Protect american, jobs how do we keep the entertainment industry?
Healthis what are those head what are those things that we're working on to try to keep production?
Up in The United. States we are built besting of.
Billion dollars into a new state of the art production facility at the old For Momba military base In New. Jersey, obviously The president is very keenly interested in entertainment and he's very interested In american industry And american.
Jobs but those are the conversations that we've. HAD i don't know.
Why The ellisons intimate that they have some direct line to The department Of justice for a faster path of, clearance BUT i doubt that they.
Do this is a says it is being run by The department Of. Justice The president has been.
Very clear on.
That we've been very clear on.
That The department Of justice published in twenty twenty three the guidelines for mergers that they are following right.
Now so that's what's happening. Here this is a business deal that not a political.
Deal that Was netflix CO Ceo Ted surrandos that stick with the media drama and Bringing Rich. Greenfield he's a
partner at media technology analyst At Lightshed. Partners there was a lot in, that you, KNOW i think to, START i welcome your thoughts on, it but to be, frank you, know we open that conversation by, saying given the current scenario where there's a waiver Until monday For Warner Brothers discovery to speech, paramount Has netflix got the means and the will to improve its bid if it needs?
To and that wasn't really.
Answered, WELL i think you got to step, back you.
KNOW i think one of the things that were one of the points THAT i Think lucas sort of ignored in Asking, ted you know he was talking, about isn't the big for the whole company? Simpler and the answer, is, obviously bidding for one whole company is obviously. Simpler but what he's missing is The warner. Board and what really started this entire process was a desire to split the, company, right to separate the the studio streaming assets from the
LINEAR tv business that was considered mission. Critical AND i, think you, know the challenge now Is, netflix by buying only the streaming and, studio is not Preventing Warner brothers from affecting the. Split this summer paramount is they want to stop the. Split they need the cash flow from those you know they're dying but you know those high free cash flow cable network assets to finance, this and so they're trying to stop the, split but the board
wants to split Because god. Forbid trump changes his, mind like we've Seen Tegna Next.
Star like, You i've certainly Seen trump change his.
Mind if for any, Reason trump or even a foreign regulator blocks The Paramount Warner brothers, deal you would not have split the, company and you'd be in twenty twenty. Seven AND i think that is there's a lot more value sort of an intangible but a real value to that split THAT i think there's been a tremendous amount of just ignoring and What i've read in sort of the press about, this and SO i think that piece
is really. Important but to answer your very specific, QUESTION i do think If netflix had a raise by five to ten percent their, BID i think they Would and SO i think the only Way paramount wins is with a knockout, bid something in the thirty five to forty, range probably thirty six thirty.
SEVEN i Doubt netflix chases that.
High on the network's liking A tv. PIECE i think we asked him later on why you, know in Miss surrenders's Answers, forseonmble we're not in that, business but he'd already said those are the assets for. Sale what we did talk about was the movie, business. Theatres right And bloomberg had reported that the DOJ's talking to that industry
to assess what they think will. Happen and you, know the simple argument miss The surrenders makes is That Warner brothers has not just been making THE ip for one hundred. Years their distribution at theaters is. Excellent that would be an advantage To. Netflix do you do you see?
That, Look netflix is not in the theatrical distribution. BUSINESS i think they certainly have recognized that theatrical can add a marketing power to some of their. Content you look at how they Put Stranger things in movie. Theaters you, know they PUT K Pop Demon hunters a couple of times in movie. Theaters so you, know they actually released
a lot of movies with you, know shorter. Windows but there was a lot of, MOVIES i think probably twenty movies released in theaters last year By, netflix and so you, KNOW i don't think there's a wholesale. Aversion do they believe that the movie business needs to? CHANGE i think they. DO i, mean, look movie theater. Attendants forget about this
Whole netflix discussion for a second. Movie theater box office in the last twelve months is twenty five percent below where it was pre, pandemic and that's just box office actual butts in seats attendance is down fifty percent from pre. Pandemic so the bottom line is the theater business is in a very very, dark troubled. Place the reality is
you need people that are investing in the entertainment. Business and you, know the reality Is netflix has certainly shown a history of investing very aggressively.
In content all around the.
World you, know, look we'll See paramount says they're gonna make thirty, movies But disney also said they were going to Keep fox as a fully independent, studio and cost cutting eventually drove that production right back.
Down and so there's very few incremental movies From disney.
Today and SO i don't, Know i'm sort of skeptical that anyone would ever try to actually make thirty, movies because you can't make ten or fifteen movies, profitably let alone.
Thirty paramount has Until monday to do something right because right now really just and that's sort of a red hurricane to go with, That so go with, that not, Really so what happens.
Next, well we don't really.
KNOW i, mean, look the board has a Fiduci if you're the board Of Warner, brothers you have a fiducia responsibility up until the, vote, Right like, so If paramount came in the night before with a knockout bid thirty five dollars or thirty eight dollars all cash debt guaranteed by The, ellsons you don't have to worry about solvency and closing and all of.
That you, know the board, WOULD i think would have to.
Listen, so, like, sure they are definitely trying to force a best and final out Of, paramount who's been asking to talk to the board for quite you, know probably for a couple of months. Now but my point just being that even if it doesn't happen On, monday it theoretically could happen.
Later time is obviously running.
Out you, know you're down to you, know effectively four weeks from, today there's going to be a shareholder, vote AND i think without a meaningful increase from, Parers netflix is going to win that.
Vote to your, Mind, rich we just have thirty, Seconds but which is most? Logical remind us where you.
Stand unless IF i Was, PARAMOUNT i would not dramatically raise my. Bid they really believe that regulatory wise will, FAIL i would play that. OUT i think overpaying if you're paramount and overlevering does not make. Sense i'd rather lose and invest on my own sort of the Way netflix did for a decade than. Overpay and SO i Hope paramount doesn't do something quote unquote price.
Stupid but we'll see over the next few.
Weeks Rich, greenfield Like Shed. Partners great to have you back on the. Show thank you very. Much let's go to. SPACE nasa has Set march sick as the target date for Its artemist to lunar. Mission The Space agency is holding a press conference right, now which we're. Monitoring but let's get the latest details Of. Bloomberg space Reporter Sana. Pashanka, okay we have a, date you AND i will be it seems heading To. Florida remind us how we got to this.
Point, Yeah, so they just you, know conducted the wet dress rehearsal over the past few, days and during that, test they practiced loading fuel into the, rocket conducting the lunch launch, countdown and removing the propellant At Kennedy Space center to make sure the rocket is ready to take these astronauts to the vicinity of The, moon which will be the first time in over half a. Century so, yeah now they are, launched they're successfully targeting The march
sixth launch. Day the four astronauts will enter a quarantine period soon so that they can be prepared for the.
Mission.
YEAH i think that fourteen day quarantine period kicks off this, afternoon and there are no, guarantees, Right remember there are. Windows there are dates Through march and then another window In. April big news YESTERDAY snasa had Put starliner and what happened With starliner in the same class of mishap as The shuttle. Tragedies that was a big red headline on the. Terminal what do we need to?
Know, Yeah so, basically if you might, remember The Boeing starliner mishap left TWO nas astronauts kind of stuck on The International Space station for months longer than expected after the vehicle suffered technical difficulties on the way there that made it too dangerous to bring these astronauts back. Home so they initially had a week long mission planned and ended up turning in two. Months since they could not
come home on The Boeing starliner. Vehicle and so this report which came out, yesterday essentially classified the whole debacle as a type a. Mishap as you, mentioned it's the
same level as the challenger in The columbia. Incidents And Isaac, man THE nasa, administrator essentially attributed the debacle and kind of the lack, of you, know clear organization around it as the fault OF nasa, bureaucracy faulty, engineering and more, so it was really just a substantial kind of reflection on what happened and how bad it really was in the scheme of NASA's.
History, Bloomberg Santa, pashanka it's great to have you on the. Show thank you very. Much let's get back to, markets and this is what the picture is right. Now The Supreme court has struck down a large part Of President trump's tariff. Policy then as that one hundred is now up half of, percent pairing what was a big gain in the immediate aftermath of, that.
We also saw the dollar fall. Bonds for you look.
At THE us tenure yield now kind of up less than two basis points four points or eight two.
Percent but that's where the reaction.
Was we are waiting for direct an official response from The president and The White house and continue to monitor market and its impact on. Tech will be right. Back it is halftime and this Is Bloomberg. Tech welcome back To Bloomberg. Tech the big breaking story of the day is that The Supreme court has struck Down President trump's global tariff's, policy a six to three decision arguing that he exceeded his authority under The International Emergency Economic Powers.
Act markets reacted as follows big surgeon equities outperformance in, technology particularly in chip and infrastructure. Stocks others will get To in just a, moment bonds fell and the dollar fell as. Well within that bucket of technology. Stocks there are some specific things to take into account right which is on the. Cryptoside we see some Movement bitcoin going. Up e commerce is a big story as. Well there's a lot of emphasis on the what happens.
Next clearly we will get to that very.
Soon but a number of companies across THE us economy had sued to recoup any of the duties that they. Paid let's try and summarize that With bloomberg's equity Reporter Carmen, RYINIKEY i, Mean. Carmen the advantage of having the terminal is to see everything play out in real. Time seeing in the tech, sector is there anything specific in terms of outperformance or under performance in single names directly in response to The Supreme court.
Decision, Yeah so we really.
See enthusiasm flow back into some of those you, know big hyperscalers we're you're seeing you, Know, Amazon alphabet Even nvidia sort of back at the top of THE nasdak performers. Today you, know these are the biggest stocks in that. Index they're helping to lift the entire. Thing so some of that is you, know enthusiasm around the potential for you,
know revenue to flow back to these. Companies AND i think there also might be a sense that this decision might sort of lift or smooth out some supply chains From. Asia so that's particularly important for those chip, makers as you, said you, know the companies that are building manufacturing chips and. SEMICONDUCTORS i think the other thing that we're seeing here is that you, know we Saw apple also hire definitely one that has a very global presence and could benefit.
Here and all of this is really contributing to THAT nas deck going higher on the, week and it could app a three week, right, yeah string of.
Losses So i'm sorry to interrupt.
You i'll jump in because WHEN i got to my desk this, morning that's the STORY i was waiting. For it looked like The nasdaq one hundred would drop on the, week fourth straight weekly. Decline, actually The Supreme court decisions really turned it. Around but let's, say you, know we were headed for a four straight week of. Losses what's been the driver at the index level in the tech sector more.
Recently, yeah so we've obviously had this sort OF ai disruption narrative play. Out there's been a lot of jitters about you, know HEAVY capec, spending not bringing ENOUGH roi for, investors and then you know the sofs that we saw in some very specific names over the last week and a half in places where you, know there were worries that software would just disrupt.
Entire you, know, sectors entire.
Companies so that was really. INTERESTING i was also looking for The, nasdaq you, know to potentially hit a fourth you, know week of declines heading into next week where we have in videos. Earnings so the setup there is. INTERESTING i think seeing someone husiasm today maybe changes the narrow littive a little. Bit we'll see if this sticks and if it really marks the.
Sentiment shift IN.
Ai but in videos, report that's really the next big. Catalyst you, know What jensen will say about what they're seeing next is going to be really important to investors looking for some you, know confirmation or some excitement about THE ai trade going.
Forward video earnings off to market Next. Wednesday but GENERALLY i think the market betting on lower tariff, risk reduced policy. Uncertainty Bloomer's Carmen, rhyanikey thank you very. Much let's get more on The Supreme court Decision tariffs and tech With michelle Ga, at THE ceo of The Crack institute For Tech diplomacy At. Perdue so that's the kind of next step the. Unknown The court did not take actional weigh in on the issue of refund.
That will go to the lower. Courts but across.
The sector there are companies that had taken legal action to recoup duties that they were having to pay because of the. Tires The president put in place a hard question to start, With but what does happen?
Next, WELL i think we're going to see that play out in the next twenty four hours and frankly the next few. Months BUT i think there's two very important things to recognize about the ruling. Today the first is that the ruling is a screenshot in a very long
movie About american economic. Transformation and the truth is that we can't unsee the fact that the trade policies that we've set up over the past twenty, years thirty, years fifty years in some, cases have disincentivized the very things that we need to do in order to lead and be, safe, prosperous and secure as a. Country that includes being able to manufacture at, home to regain control of our supply, chains to have any sort of production capacity here at.
Home so the when and how of revamping our trade relationships is all taking, place and this is the latest. Scene but the reality is in the big picture is that reindustrialization is our. Future our trade relationships are at the heart of, that and there's no bringing the train back into the, Station.
Michelle at the time the news, broke The president was in a closed doors meeting with, governors BUT cnm reporting that he stated that he has a plan B earlier in the, program we went through that there are other. Powers, right relating to other buckets for tariffs that his cabinet have, outlined how much do you expect a sort of severe reaction or a continuation of the status quo from the president in that, Sense, YEAH i.
Think they're going to take a.
Look it sounds like they're going to take.
A look at all of the different tools that the executive branch can use in order to rebalance our trade. Relationships congress is already coming out with statements by some members on doing the, same and so there's a number of things. Here but remember that tariffs aren't our only.
Tool and look no further than THE ai summit that just took place In New delhi In india over the past few days to recognize that trusted technology and the innovation coming out of The United states is also a very important and maybe the most important tool that we have to revamp our economic relationships with our. Allies you had every Leading american tech company show up In New delhi to announce deal after deal with our partners In.
India you had The White house show up to say we're here to give you the best gold STANDARD ai to give you. Financing on top of, it we're going to send in THE us tech. Core in other, words we're going to teach you to, fish and we're going to make you a, sovereign prosperous ai capital in the. World and that is a very strategic tool for getting our partners around the world to want to do business with.
Us, michelle very grateful that you took us.
There you, know they're almost competing policies or competing, ideals. RIGHT a big section of The White house wants to have The american technology stack dominant in markets. Overseas one of the things that Common, ryanikey our equities, reporter was seeing in the markets is the reaction reflects hope that maybe supply chains get eased up a little bit because tariff's taken out of the, equation give you access To.
China try and balance that for.
Us, YEAH i think look, again The parris and the specific percentages that we're agreeing on with our partners around the world are one single. Tool another tool is all of the other pieces of The american value proposition in trading with our. Partners and, Again india is a really great. Example japan's also a really good. Example we've got a new trade relationship with. Them they're investing five hundred billion dollars into The United states or first thirty billion they
announced last week in power. Infrastructure. Here Soft, bank A japanese, company wants THE us to be a leader in artificial. Intelligence so the money is pouring in from our. Allies the trade relationships are strong, there and again it's because of the trusted. Technology we have the best technology in the. World we also have trusted tech. Companies you didn't see Any chinese deals announced In, india and Remember india was the first to be to Ban TikTok and Other chinese
tech companies because they don't trust. Them and so we have terriffs as a, tool and we have trusted innovation as a, tool AND i think that's going to be the future Of american.
Diplomacy Michelle, Guide PURDUE Crag institute For Tech.
Diaplomacy great to have you back on the. Show thank you very much.
Again going back to financial, markets particular focus on the technology. Sector, then as that one hundred is come off its session high gain of about one point one, percent but still up eight tensve, percent and as we've been saying for the last forty, minutes it is no longer on track for its fourth straight weeks of. Declines it's snapped three straight weeks of declines outperformance in the first chip Sector
Philadelphia Semiconductor. Index but the story basically equities pushed, higher the dollar and bonds fell as The Supreme court struck Down President trump's global. Tariffs we have more throughout the. Hour this Is Bloomberg. Tech THE Us Supreme court has struck Down President trump's, tariffs a major decision with implications for global. Trade among the company's most, Impacted, apple according To Bloomberg, intelligence the tech has paid roughly three billion
dollars in tariffs over the past. Year for more on the ruling On apple and the administration's trade, Agenda Bloomberg surveillance co Host Hemry horde and is. BACK i, Mean apple is now pushing to its own session. High it's one of the names that's continued to have momentum since the ruling. Hit there's some logic to.
That, Yeah and they recently spoke about this on the recent Earning zoo, call and they said that actually the tariff impact was somewhere in the one point four billion dollar range when it comes to how much they have had to deal with paying some of these, costs and obviously there's a lot of consternation about what does those costs from the tariffs mean for everyday consumers that want
to go out and get new. iPhones when it comes To Tim, cook remember there are some few keen moments that the course of the last year as he tries to be the diplomat between The White house as well As. Beijing so in the summer he went to The White house and talked about how he was going to Invest apple's going to invest in another one hundred billion dollars
into The United. States that was In, august and then more recently in in the, fall he went To, china and In china he talked about committing to expanding manufacturing representation as well In, china And, china of course is its key market outside of The United. States they still make a bulk of their. Manufacturing but For Tim, cook he has to almost do both at the same, time make sure that he's Showing china that he's committed to that.
Market but at the same, time especially when you have this tariff, announcement and you likely see this administration having to go back to the drawing, board especially With, china which took the hardest to land when it comes to the tit for tat, trade what we saw In china coming out and using rare earth as a negotiating tool
at those. Talks Tim cook is probably going to likely continue to diversify the manufacturing supply chain as we have Seen apple move into places Like vietnam of, course and places Like.
India and amh is probably worth reminding our audience that actually the other piece of news that came out this morning is we know that The president will go To. China what are the dates and frame it in that trade negotiation.
Context, yeah it was.
Pretty stunning the fact that we got The Iiepa Supreme court decision at the same time that we have confirmation about the president's trip To. Beijing he's been talking about this trip and he'd go In april to have a meeting With, shijingping and it's going to Be march thirty first Through april. Second and at the same time the administration thought they had a tariff rate With. Beijing they
clearly are going back to the drawing. Board now there Are section two thirty two and three or one tariffs On. China those will stay. Well The Supreme court rule today was REGARDING, aipa and they just ruled that The president cannot USE aipa the way he. Did the flexibility how BLUNT iepa is for this emergency tariff. Authority so now they're going to go back to the drawing board and PLAN.
B we can expect more. Tariffs And i'm speaking to foreign officials all morning that they expect things to stay the same because they know the administration is going to come out using legal. Authority but this means that that trift we are. Tripped we are not past peak terriff. Uncertainty there's going to be a lot of trade headlines before and during their trip when The president sits now With shujinping And.
Beijing and we haven't heard directly or officially this morning from The. President The European commissions come out to your point and basically said we are looking for clarity of what the president might do next after this. Ruling, Bloomberg Samory, horden don't go. Far thank you very much for the reporting in the show thus. Far West virginia is Suing, apple alleging the company knowingly allowed users to store and
distribute child sexual abuse material on its iCloud. Platform, apple as most of you, know consistently advertised its commitment to privacy and has end to end encryption in its iCloud. Platform the company says in a, statement protecting the safety and privacy of, users especially, children is central to what it. Does Though apple didn't specifically comment on this, Case let's
discuss the allegations with the man behind. Them West Virginia's Attorney General john McCuskey And Attorney, general good, Morning thank you for your. Time start with the, basics, timing why, now and what is it that ultimately you are trying to affect here and Want apple to.
Do, Yeah so to start with, first thank you for having me. On West virginia has a child welfare, crisis and we have thousands of children who are in and out of foster.
Care and the data.
Tells us that kids that come from homes where parents have substance use disorder or in and out of foster care are the most likely to be the ones who are harmed in these child trafficking. Rings and So West virginia has an exigen problem and this is a huge
part of. It and we hear from our law enforcement partners all the time that when we're trying to find these child, predators the people who take these, pictures distribute these, pictures use these pictures to groom other, children that they have a very very difficult time finding these images when the, user the pornographer of the child press editor is saving
them in an eye. Cloud and so for, us you, KNOW i appreciate the fact That apple is committed to user, privacy but that privacy ends when you decide to commit an egregious felony against a. Child and so it is our contention that While apple's privacy can be a very good thing for those of us who live in the real and legal, world it is the balance needs to tip in favor of finding these child predators and removing these images from The.
Internet in twenty twenty, one you, Know apple had put out a proprietary set of it's, outlined you, know in the filings c sum detection, tools but, ultimately you know a year later that they weren't put into. Effect you talk about. That what's your assessment of that decision at the.
Time, Yeah, SO i think the really salient point here is that in twenty twenty, Three meta And google provided to law enforcement somewhere in the neighborhood of thirty five million C sam, images meaning they removed thirty five million criminal pornographic images of children from their, cloud and at the same time, Period apple removed two hundred and thirty Six so on one, side you have the entire market removing almost forty million images And apples being less than
five hundred and so we know the images, exist we know they're on The apple, cloud and it is our contention here that the safety of these vulnerable children who are being abused needs to come Before apple's commitment and marketing strategy to PRIVACY.
Jb apple, alone or are you looking at other large technology companies in the context of this, issue and just because we short in, time any other attorneys general that would or didn't want to participate with you in This, Yeah so.
This is an issue that is being batted around in
legal circles all over the. Country West virginia likes to go, First we like to be a, leader and SO i believe that us taking this first step will very likely induce other attorney generals to follow and sort of to your larger, point if we find other technology platforms that are intentionally harboring these kinds of, images a similar lawsuit will certainly, follow But apple is the market player that is the most committed to ensuring that these images stay within their.
Cloud this, morning THE Us Supreme court struck Down President Donald trump's global, tariffs saying he exceeded his authority by invoking emergency powers. LAW i have to ask, You Attorney, general for your thoughts and your response on.
That.
Yeah so The United states has a wonderful system of, laws and when The Supreme court, speaks that's the. Law we have a president right now who likes to push the. Envelope he likes to make, big bold, changes and when you do, that you will occasionally run a, foul you, know trying as hard as you can to effectuate your.
Policy and so what the president will do is you'll go back analyze which tariffs are still on the, books which were affected by this as you just spoke about, before which is actually kind of a lot of, them and he will work on trying to implement what he thinks and WHAT i think is an important policy of reshoring so much of This american manufacturing and Holding china accountable for their improper trade practices and the ways in which they've heard of The american.
Economy West Virginia Attorney GENERAL. Jb, mccusky thank you for your. Time let's get back to. Tariffs break THE scotus decision down With bloomberg's economics Correspondent mike. McKee the specific point in this because we keep saying struck down global, tariffs but it's a ruling that the president exceeded his authority under The International Emergency Economics Powers act IAPPA.
Iepa take it from.
There might like to help us understand the specificities within the ruling and then maybe we can get what happens next.
Well and basically what the court said is the president doesn't have the power to impose a, tax calling international trade and emergency and the court, said, basically a tariff is a, tax and that's not a power granted by THE Aipa. Act so The president has to find other ways now to put on the tariffs that he. Wants THE aipa tariffs were basically the reciprocal, tariffs the ones he put on, everybody along with the fentanyl tariffs that
he put On mexico And china and some. Others so those go, away but there are a number of other different methods the president could use that the court said are, fine and they noted that the administration could have done that in the first. Place section one twenty two is maybe their first. Fallback it's a ability of the president to put on a fifteen percent tariff for one hundred
and fifty days if there's a balance of payment. Problem and the administration, contends we've got a balance of payment problem because we have a trade, Deficit so look for that, first and then are the ones that they've already, used Like section three point thirty eight to two thirty two The National, security when they've put On, china those will
stay in. Place so there's at this point a question only really of what tariffs are they going to, use and then how do they add up the, tariffs get them as high as they want them to be to replace what they're losing FROM.
Aipa the trade deficit continue to grow throughout last year twenty twenty. Five i'm trying to get a sense of the sort of economist reaction to. This so economysts are basically saying that this could lower the effective tariff rate and now support. Growth give me the economics of this morning's.
Decision, well if.
You take it in, isolation it does lower the. Terifray The Ale Budget lab says it puts it down to about nine point one. Percent it wasn't sixteen, percent so imports would be, cheaper but that's assuming The president doesn't put on any more. Tariffs we don't know what the ultimate tariff rate.
Is going to.
Be but the trade deficit basically was unchanged from last. Year and the reason being is we import a lot of. Stuff we like to buy stuff from, overseas and a lot of the things that we like to buy we don't really make. Here and so even if we are not getting things from tariffed, countries we're getting them through other. Countries And china sends a lot of stuff To. Vietnam vietnam has a tariff but not as high As, china so they send stuff To vietnam and then they ship
it to The United. States that sort of stuff's been going, on and we have found new markets to buy things, from so it's not really having the Effect the administration wants on the trade deficit to bring that. Down they, say over, time it'll cause people to build factories here and make the things.
That we buy from. Overseas but it's hard to see us.
Making making factories to make clothing or to make, toys things that aren't very big. Value add we make THE ai chips and things like.
That Mist mike, McKee thank you very. Much so let's get out to the north lawn of The White house to the latest With. Bloomberg White house Reporter Kate. Sullivan and you, KNOW i keep checking that The bloomberg terminal for headlines reaction from The. PRESIDENT i don't see any directly thus. Far there was reporting FROM. Cnn what do we need to?
Know that's.
RIGHT i have been refreshing as. Well we have not yet heard publicly from The, president from The White House press, secretary or anybody in This White house about. This The president received the news the ruling came down when he was in a closed door meeting this morning with. Governors there was a, Breakfast he invited a lot of governors to The White. House he, reportedly according TO, cnn called the ruling a disgrace and said that he would implement
a backup. Plan so that's the big question now is we're watching to see how The president, responds what the actual plan. IS i will say THAT i don't think that this is coming as a big surprise to The, president to This White. House they have been racing for this and talking about potential other avenues that they could take for quite some time. Now we also heard The president last. Night he gave an economic speech In, georgia
and he talked a lot about the. Tariffs he defended the, tariffs he said, that he, talked he complained about the fact that this case was even before The Supreme. Court so we've been hearing from The president for quite some time now on this, case and now we're just waiting to see what the next steps are and how This White house.
Is going to respond just very, Quickly, KATE i know that The Treasury secretary has a number of public appearances on his, docket but then we Get state of The Union.
Tuesday that's, next, right that's, right that's.
RIGHT i do think that this will be. SOMETHING i think we will hear from The president before The state of The, union but certainly this will be something that is hanging over The state of The, union something that The president will. Address he is not supposed to travel To florida this. Weekend he's supposed to stay here IN. Dc and so again we're just you, know like you, said just we keep refreshing to see what the reaction is going to.
Be Bloomberg's Kate sullivan and The White, house thank you very. Much that does it for this edition Of Bloomberg. Tech an, addition where The Supreme court did make a ruling finally striking Down President trump's global. Tariffs this is the market. Reaction tech outperforming and as that one hundred back near session highs up more than a, percent outperformance in chip stocks and the rest of the. Story bonds and the dollar.
Fell we continue to await response from The president of The United, states but the tech sector is making.
Moves this Is Bloomberg tech