Xi Warns Trump of Potential Conflict over Taiwan; Senate Confirms Kevin Warsh

Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Karen
Moscow and I'm Alexis Christophers.
Here are the stories we're following today.
Alexi, So we begin with President Trump's three day visit
to China. The President called Chinese President Hijin Ping a friend,
but his warm words were in the stark contrast to She,
who opened a bilateral meeting today with words of caution.
Let's start our team coverage with Bloomberg's John Tucker.
And President She of China. Welcome President Trump to the
Great Hall of People in Beijing this morning. And from
Trump's perspective, the trip is going swimmingly well.
It's an honor to be with you, it's an honor
to be your friend, and the relationship between China and
the USA is going to be better than ever before.
But beyond the pomp and pageantry came a warning from She.
You said, if the Taiwan issue is mishandled, the two
nations will experience collision or even clashes, pushing the entire
China US relationship into a highly dangerous situation. The two
leaders spoke for nearly two and a half hours of
the Great Hall. China has opposed a pending US arms
package to the island democracy that Beijing considers its territory
and asked the US to clarify that Washington doesn't support
Taiwanese independence. Trump will attend to stay banquet tonight his
next opportunity to make public remarks. She and other diplomats
will be hanging on every word. I'm John Tucker, Bloomberg Radio.
Thanks John. President Trump was accompanied by a slew of
business leaders on his trip to China, and Jijinping signaled
China's moving toward greater openness during his meeting with those executives.
Bloomberg Stephen Engel continues our team coverage from Beijing.
She's then being met with a group of these high
powered America and businessmen and women who were here. Among
the people we saw on the state broadcaster, Elon musk All, So,
Tim Cook, Kelly Ortberg of Boeing and also Jensen Wog
among those who were ushered into a room with chijen Ping,
and she Diping did pledge to open up further the
China market to those businesses.
Bloomberg. Stephen Engel added that US beef exporters maybe among
the first winners from today's summit, China renewed import licenses
for hundreds of US beef plants well Alexis.
There's still no signs of an end to the war
in Iran as it enters it's seventy sixth day. This morning,
a UK naval group reported a commercial vessel off a
coast of the United Arab Emirates was taken by unauthorized personnel.
It is now bound for Iranian waters. The incident happened
just as there appears to be an uptick in vessels
transitting the Strait of Hormuz this week, and just days
after Iran laid out an updated process for ships seeking
to cross the vital waterway.
And of course, oil and gas prices Kareniff surged since
the onset of the war. The average price of gas
is now above four dollars fifty one cents across the country.
Lawmakers on Capitol Hill are watching gas prices and the
impact on inflation. Bloomberg's Amy Morris reports from Washington. Minority
Leader Hakim Jeffries blames the war in Iran for the
rise in inflation and blames the Trump administration for the
war in Iran.
Billions of taxpayer dollars are being wasted. Has resulted in
life becoming more expensive for the American people, particularly as
it relates to the dramatic increase in gas prices.
House Speaker Mike Johnson says those gas prices are temporary
because if.
We get the straight of our moves win, we get
the straight of our moves reopen. That will alleviate a
lot of pressure with gas prices and other things in
the economy.
Johnson also downplayed Trump's comment that he doesn't think about
American's financial hardships when dealing with the war in Iran.
In Washington, Amy Morris Bloomberg Radio.
Right, Amy, thank you to politics over ses UK Prime
Minister Keir Starmer is heading for a divisive battle with
a leading a cabinet member said to be preparing to
challenge him for the top job. And we go to
London and get the very latest, So Bloomberg's You and Potts, You,
and good morning Alex and Karen.
It's less than two years since Kirs Starmer won an
election landslide election victory promising to stop the chaos in
UK politics. Well here we are again, allies of the
Health Secretary. Where streetings say he's likely to quit his
post this week and launch a bid to replace Starmer
as Labor leader and therefore Prime Minister. Starmer's former deputy,
Angela Rayner, has also indicated today that she's preparing for
a bid for the top job. The Prime Minister says
he will fight any challenges with his Chancellor, Rachel Reeves,
warning today a leadership contest would plunge the UK into
quote chaos in London, I'm youw and pots Bloomberg Radio, all.
Right, thanks you and European health officials say the respiratory
virus behind a deadly outbreak on a cruise ship is
showing no sign of mutating to become more contagious. One
health official says the Hunter virus's genome has been sequenced
and is similar to strains that caused outbreaks in South
America in the past, and that's likely where the first
passenger was infected before boarding the Hondias. The outbreak is
now linked to ten cases, including eight confirmed infections and
two probable cases with three deaths.
Let's turn to the markets now, Alexis, where futures are
higher following yesterday's tech fueled rally than ASHDAC surged one
point two percent. Brand Shooty is the chief investment officer
at Northwestern Mutual Wealth Management.
No, people talk about the market ignoring right now the conflict. Actually,
if you look a step deeper, it's not ignoring the conflict.
This is where the market has narrowed and we're back
to the AI theme driving everything, and that's the only
part of the market that's actually going up while other
parts are languishing.
Brand Shooty at Northwestern Mutual Wealth Management notes the Philadelphia
Semiconductor indexes up almost seventy percent so far.
This yere wow. And of course, Karen, we've got shares
of Cisco on the rise this morning, surging more than
eighteen percent here in early treating, the company delivered a
better than anticipated sales forecast. It also announced plans to
cut thousands of jobs. Cisco says its restructuring plan is
designed to further improve its position in the AI economy.
Aih maker Cerebrius Systems raised five and a half billion
dollars Alexis in one of the largest tech initial public
offerings in years. The company price it shares above the
marketed range at one hundred and eighty five dollars each,
giving Cerebris a market value of about forty billion dollars.
The IPO drew orders for more than twenty times the
number of shares available. Cerebris will trade on the Nasdack
under the symbol cbrs Well.
Kevin Warsh has been confirmed as the next Chair of
the Federal Reserve. The fifty four to forty five vote
was the slimmest confirmation margin ever for a FED chair.
Michael McKee, Bloomberg News International Economics and Policy correspondent has
more on Warsh, so.
The question now becomes when can they get the paperwork
done and get him sworn in. J Powell is going
to be the Fed chair until Friday midnight, and after
that any time we could see Kevin worsh put his
hand on the Bible and take the oath.
Bloomberg's Michael McKee says the vote was so close because
Democrats fear Warsh will bend to President Trump's demands to
rapidly lower interest rates.
Alexis soccer legend Ronaldo is expanding his empire ahead of
the next World Cup. The world's first billionaire soccer player
has bought a stake in the international streaming channel live
Mode TV. The move marks the latest deal by Ronaldo,
whose net worth is estimated to be about one point
four billion dollars. His broad business portfolio includes his CR
seven brand hotels gyms, as well as a media.
Group five h nine on Wall Street. Time Now for
a look at some of the other stories making news
in New York and around the world. For that, we're
joined by Bloomberg's Michael bar Good Morning, Michael.
Good Morning. At Lexis Socks, between New York City's transit
system and Long Island railroad workers have hit a snag
over disagreements on cash payments versus wage increases. The Metropolitan
Transportation Authority and five ALI doubled r unions have been
negotiating for months with a federal mediation board on salary increases.
A strike as early as this Saturday would force thousands
of commuters onto the Islands already congested roadways. These alliant
double r riders spoke to ABC seven, I have to.
Work every day, especially on the weekend, so I don't
know how I'm.
Going to get there.
A lot of the healthcare workers that I work with
are definitely impacted, and the hospital's making alternate arrangements for
them to get to and from work.
New York Governor Kathy Hokol has said that a strike
would be terrible for everyone involved. A judge's rule that
a Utah mother who wrote a children's book about grief
after her husband's death will serve life in prison without
parole for his murder. Corey Richins was convicted of poisoning
her husband in twenty twenty two. Judge Richard Murzurich.
A person convicted of those things is simply too dangerous
to ever be free.
A judge also founder guilty of insurance fraud. Along with
the jury, The South Carolina Supreme Court unanimously ruled to
overturn Alex Murdoch's murder convictions. Prosecutor said Murdoch killed his
wife and son in twenty twenty one to distract from
financial crimes. The justices took issue with a court clerk
who was accused of improperly influencing the jury. AP has
called Denise Powell the winner of the Democratic primary in
Nebraska's second congressional district. Powell led her closest opponent, state
Senator John Cavanaugh by two point one percentage points. She
will face Brinker Harding an Omaha City Council member endorsed
by President Trump in the general election. Global news twenty
four hours a day and whenever you want it, We're
the Bloomberg News.
Now.
Michael Barren, this is Bloomberg.
Thanks Michael.
All time now for our Bloomberg Sports update, and for
that we bring in John Stashauer.
Thanks Darren Overton to go to the NBA and Stanley
Cup playoffs in Detroit. The Pistons led the Calves by
nine with under three minutes left in regulation. Cleveland scored
the last nine, went to overtime in one Game five
in Detroit one seventeen one thirteen Caves Series three two.
Colorado Avalanche trailed Minnesota three nothing, rallied the Force overtime,
and then beat the wild four to three. They win
the series for one. The one hundred and eighth PGA
Championship teas off today at the Erronomy Course in Pennsylvania.
Scottie Scheffler defending Chant. That to the Bloomberg's Works Update.
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And President Trump went into his summit, which Chinese leader
sees in pain, touning the friendship between the two leaders.
It's an honor to be with you, It's an honor
to be your friend. And the relationship between China and
the USA is going to be better than ever before.
But as warm words were in star contrast to she
who opened a bilateral meeting warning the president of a
potential conflict if the Taiwan issue is mismaan. And for
more on the president's visit, we're joined by Bloomberg's and
Marie hor Dern in Beijing. And Marie, good morning. Let's
start with the latest we're starting to get the US's release.
It's readout of the President's meeting with Shi. What does
the White House have to say about the progress that's
being made.
Well, certainly the White House wants to focus on the
deals in terms of the progress that's been made between
Washington Beijing. When it comes to trade, they discussed an
increase in purchases of agriculture, so big win for beef
and soybeans potentially. Also, the US readout talks about how
Shijingping expressed interest in purchasing more American oil. What is
so telling to me, though, is that what is missing
from the US readout, And that's when it comes to Taiwan.
Which is interesting because that really took center stage during
the meeting when while the two were sitting down at
the Great Hall of the People. We have very sharp
warning from Shijingping expressed through China state media a readout
on the Chinese side when Xijingping said, the Taiwan issue
is the most important issue in the US China relationship,
and if mishandled, the two nations will experience collision or
even clashes, pushing the entire relationship into a highly dangerous situation.
So that was a very sharp.
Warning from China while the meeting was taking place. It
is clear the White House wants to focus on trade
and technology and Taiwan is something they do not want
to address.
Yeah, and what did that tell you about how shi
Jinping sees his position. Does he feel he is in
a stronger position and can go in right away making
some demands of his own.
Well, I think she is coming into this very assertive,
especially when it comes to Taiwan. But I think It's
important to understand the context of what is going on
in terms of Taiwan arm sales in the United States.
In December, the Trump administration greenlan in eleven billion dollar
arm sales package. There's another package that is waiting in
the wings, and it's not unprecedented for presidents in the
past to not green light another Taiwanese arms package before
a meeting with Shijingping because they do not want to
create unnecessary problems in terms of the dynamics of the
relationship between Washington and Beijing just before a massive meeting.
The real important question is going to be what happens
when the president returns to Washington. How does he talk
about Taiwan. Does he talk about the fact that Shijing
Chipping probably asked him to continue to delay this arms package.
This is going to be very telling. And then, of
course whether or not the US in the end does
green light that fourteen billion dollars.
This is Bloomberry Daybreak, your morning podcast on the stories
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