Trump Presses Senators to Embrace House Tax Bill; OECD Warns on Tariffs

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 in Washington, where President Donald Trump has
been working the phones and social media trying to get
Republicans in the Senate behind his multi trillion dollar tax
and spending cut bill. The legislation passed the House by
just one vote last month. The President can afford to
lose no more than three votes in the Senate. Republican
leaders plan to make many of the temporary tax cuts
in the House bill permanent. North Dakota Republican Kevin Kramer
says that will be key.
The biggest piece of the Tax Cuts and Jobs Act
from twenty seventeen that we need to fix is to
make those tax cuts permanent. Those are pro growth tax cuts,
and if we want to make a dynamic economy even
more dynamic, I think that's got to be the that's
got to be sort of the foundation of it all.
Republican Senator Kevin Kramer spoke on Blue Brigs balance of power,
but extending those tax cuts could put fiscal hawks ad
odds with moderate Republicans who are concerned about the bill's
cuts to Medicaid, which could encoverage for about seven point
seven million Americans. President Trump is pushing for the bill
to reach his desk by the fourth of July, but
any changes in the Senate would mean the House would
have to take up the bill again.
Nathan, we may soon see the impact of President Trump's
trade war on the global economy, and we give the
details with Bloomberg, John Tucker, John good Mardy.
Morning Karen. The Organization for Economic Cooperation and Development has
slashed its annual global growth forecast and it says the
United States will be especially hard hit. It places the
blame squarely on US tariffs. The OECD downgraded it's twenty
twenty five growth forecast for the US from two point
two percent to one point six percent, and they say
the world's biggest economy is expected to slow further next
year to one and a half percent. This is a
club of thirty eight rich nations. It says the combination
of trade barriers and uncertainty or hitting confidence holding back
the investment will also warning that protectionism is adding to
inflationary pressures for the US. The oec D sis curbs
on immigration and a sizeable reduction of the federal workforce
add to the trade related drag in the economy. It
also cautioned that the budget deficit will expand further as
the impact of weaker economic activity will more than offset
spending cuts and any revenues from tariffs. In New Yorkome,
John Tucker, Bloomberg Radio.
All right, John, thanks, so you do have some developments
on the trade wars this morning. The White House says
President Trump and Chinese President Si Jinping are likely to
speak this week, and Beijing has not commented on the
prospect of a direct conversation. But we get more from
Bloomberg News Senior editor Bill Ferries.
It's not clear to me who's going to blink first
here in this battle when you talk about the trade side.
Countries now know that there's a chance that some of
Trump's tariffs aren't even legal. The courts have ruled against it.
We'll wait and see how that plays out. But the
president's leverage I think has shrunk over the last week
or two weeks or so, and I think a lot
of his adversaries and friends who are negotiating over tariffs
know that.
When Bloomberg's Bill Ferry says Washington and Beijing I have
traded accusations they violated the terms of last month's broad
agreement that saw both sides reduce tariffs from astronomical highs.
Well Nathan, a former White House official, says any potential
trade deal between the world's top two economies hinges on
Donald Trump and Chi Jinping overcoming core differences in their
negotiation styles. We caught up with former acting White House
Chief of Staff McK mulvaney.
Trump wants to talk at the very highest levels. That's
not always how the Chinese want to do business, and
it'd be curious to see if they're able to make
any headway. Trump doesn't want to go through the back channels.
They just don't want to go through the ordinary course
of business. That's never been his style as a leader,
being in business or in his first term in office.
He wants to talk to the principal. He wants to
talk to President She himself.
And former Acting White House Chief of Staff McK mulvaney
also served as President Trump's budget director during his first term.
Well All deals with China and the European Union provolusive
Karen Commerce Secretary Howard Lutnix says he expects the US
and India to strike a trade agreement before higher tariffs
kick in. On July ninth, Lutnik spoke at the US
India Strategic Partnership Forum in Washington.
Earlier countries get a better deal, That's the way it is.
So those who come in, you know, July fourth to
July ninth is just going to be a pile, right, right,
But those who are earlier, and I think India is
trying hard to be one of the earlier countries, which
I appreciate.
Commerce Secretary Howard Lutnix says both countries are discussing bringing
their tariff rates down to a reasonable level. He says
President Trump's strong personal relationship with Indian Prime Minister Narendramodi
has made an easier path to trade negotiations.
Now Nathan to the latest on efforts to end the
war in Ukraine. Russia and Ukraine held the second round
of talks in Istanbul, but failed to reach a peace agreement.
The two sides did lay the roundwork for a new
prisoner swamp begin More from Bloomberg Russian Economics and Government
editor Greg Sullivan.
The Prisoner Exchange was the biggest element that came out
of this. Obviously, there was some talk about a ceasefire,
and both sides did exchange what they called memorandums outlining
what they need to reach either a temporary ceasefire or
a full peace, but that was not met at this meeting.
They instead exchanged these proposals, agreed to study them, and
the big thing that came out was an agreement to
prepare the groundwork for a prisoner exchange. Now the prisoners
that they agreed to exchange are the heavily wounded, those
that are young under the age of twenty five, as
well as some war did.
And Bloomberg's Greg Sullivan says Russia presented peace proposals that
include Ukraine's surrendering control of territory and four partially occupied regions,
while Ukraine demanded an unconditional truce and proposed another meeting
later this month.
Now to a developing story in Europe, Karen, the government
in the Netherlands has collapsed. Far right lawmaker Garrett Wilders
announced on social media that he's pulling his Freedom part
already out of the country's ruling coalition because the three
other main parties refuse to agree to his plans to
curb migration. We get more from Bloomberg's Oliver Crook.
Last week here Bilders put forward a ten point plan
on immigration. These points included using the military basically to
guard the land borders of the Netherlands, turning away all
asylum seekers, temporarily halting family reunification, also sending Syrians back
to Syria, which he considers now a safe place for
refugees and other migrants to be sent back. He said
that if the majority of these ten points are not
agreed to by the government, yesterday he threatened to pull
out of the government, and today on x we have
him saying no signature for our asylum plans, no changes
to the main outline agreement.
And Bloomberg's Oliver Quik reports this move now forces the
Netherlands into a snap election. The next vote wasn't scheduled
for another two years.
Well, we turned to the Marcus now Nathan, where futures
are lower following yesterday's gains on Wall Street. In company news,
there's more job cuts in Microsoft. The tech giant is
cutting hundreds of jobs in Microsoft spokesperson sent the latest
head count reduction is in addition to the six thousand
job cuts that were announced last month, and Microsoft's trying
to trim costs even as it plows billions of dollars
into artificial intelligence.
And Disney's cutting jobs as well, Karen, that company's laying
off several hundred employees across its film and TV divisions.
Disney's latest reductions follow roughly two hundred job cuts across
the ABC and Entertainment TV networks from March. In all,
Disney's eliminated more than eight thousand positions in recent years
as it seeks to improve profitability.
Time now for look at some of the other stories
making news in New York and around the world, and
for that we're joined by Bloomberry's Michael Barr.
Michael, good Morning, Good morning, Karen. Criminal charges have been
unveiled against the suspect and the Boulder, Colorado flamethrower attack.
Forty five year old Mohammed Soliman now faces a federal
hate crime charge and sixteen counts of attempted murder in
the first degree from the state in Sunday's attack. Boulder
District Attorney Michael Doherty.
Boulder is a beautiful and special place, but when not
immune from mass violence or hate crimes, including violent acts
of anti Semitism that impact far too many communities across
this country.
Officials saying the suspect yelled free Palestine as he launched
the attack. A former personal assistant to Sean Diddy Combs,
who says he raped her, defended the text messages she
sent to him for years after her job ended in
twenty seventeen, saying she was brainwashed. The testimony at the
Music Moguls sex trafficking and racketeering trial came Monday, as
a woman testifying under the pseudonym Mia, spent a third
day on the witness stand. The trial entered its fourth
week of witness testimony. The fifty five year old Combs
as pleaded not guilty to charges. Good news for New
Jersey's Newark Airport. A newly constructed runway is open and
more planes will soon be cleared for takeoff and landing.
This comes after recent headaches at Newark at delayed passengers
for hours and led to widespread cancelations. A telecommunications outage,
which led to air traffic controllers taking leave, also contributed
to the delays. Transportation Secretary Sean Duffy was there for
Monday's unveiling.
It can't be fixed overnight. It takes time to train
up on this airspace. But we've addressed the problem by
bringing more controllers to train up in the Philly Tree
con That again controls Newark.
Here Global News twenty four hours a day and whenever
you want it with the Bloomberg News Now Michael Barr
and this is Bloomberg.
Karen.
All right, Michael Barry, thank you time now for our
Bloomberg Scores update, brought to you by Flushing Bank. And
here's John stash Hour, John, good morning.
Good morning, Karen. The Metz road triple end in Denver
against the halfless Rockies, but it began with a four
game series in Los Angeles against the world champion Dodgers
at the site where last season ended for the Mets
in the NLCS. The series and road trip could not
have had a better start. And he gets this one
of the year in a deep right field.
Teoscarnis goes back, takes a look at it's out of
here from a sixth ton.
This year, Francisco Lindor has let off a game with
a home run number fourteen for Lindor, six leadoff home
mons times and with Otani for the most in baseball,
and just like that, the Mets jump in front on
Sny showey Otani later homer for La his twenty third.
Dodgers tied the game bottom of the ninth first blown
save of the year for Edwin Diaz. He had been
thirteen for thirteen. Mets scored twice to the tenth Inny.
Dodgers got one back Mets one, four to three. They've
won twenty seven games in a row when Lindor has homered.
At Fenway, the Angels hit three home runs and a
six to one first inning, then held on beat the
Red Sox seven to six. Saturday. When the Yankees lost
that game to the Dodgers eighteen to two, they wanted
to give their closer, Luke Weavers some he heard his hamstring.
Weavers going to be out for four to six weeks.
He's been sensational out of the bullpen, pitching to an
era just over one. Quarterfinals begin this morning at the
French Open up first the women's top seed Arena Sablenka,
yet to lose the set, and today trying to reach
a Grand Slam semifinal for the ninth time in her
last ten Slams. Two Americans are still in the men's singles.
Francis Tiafo plays today, and then Tommy Paul takes on
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Blow to the.
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Austin Ainge had been the Celtics assistant GM. John Staneshawer
Bloomberg Sports, Ken.
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager.
President Donald Trump's putting pressure on Senate Republicans to pass
the Houses so called one big, beautiful bill of tax
and spending cuts and get it to his desk by
the fourth of July. But that deadline's just thirty one
days away, and fiscal hawks like Kentucky Republican Rand Paul
are saying they won't be swayed unless they see even
bigger spending cuts.
It's just not a conservative thing to do.
And I told him I can't support the building.
I was Kentucky Senator Ran Paul joining us now is
Bloomberg new senior editor Bill Ferries.
And Bill.
It sounds like as this debate shifts to the Senate,
a lot of the same dynamics that we're in play
at the House are still in play, the fight between
getting bigger tax cuts and bigger spending cuts.
Good morning, Good morning, Nathan.
Yeah.
I mean when this bill and it was a you know,
it was a dogfight to get it through the House.
When it went over to the Senate, there were already
Republicans speaking out about a number of different provisions in
the legislation you mentioned and the tax cuts. There's a
concern about the Medicare Medicaid impacts from this. There's estimates
that maybe seven to seven and a half million people
might find themselves without Medicaid coverage if this legislation passes
as it is. That's something that some Republican senators are
saying is going too far, and then on the other hand,
you have people who are you know, you have Tom
Tillis or I'm sorry, Kevin Kramer from North Carolina who's
looking at the salt deductions that passed the House, that's
the state and local tax deductions and saying, you know,
it was at ten thousand dollars, it's now in the
House bill forty thousand. Maybe there's some room for negotiation
in between there. That's going to be really alarming news
to a lot of Republicans in the Northeast who really
fought for much more than forty thousand dollars. So quite
a bit of horse trading that's going to probably go
on here. The Senate Republicans can really only afford to
lose I think three votes for the legislation to pass.
If they change it, it goes back to the House.
And I don't want to say we're at square one,
but it's going to drag things out past the president's deadline.
So how important is it for the president to get
this legislation done by the fourth of July. How much
sway does he have on these lawmakers when there really
is such a thin margin for error.
You know, President Trump has always shown an ability to
really twist arms when it comes down to crunch time.
So I think he will give the Senate time to
come up with a draft bill. I think we even
heard that. I think Tom Tillis was talking about having
some kind of a draft out there by this weekend.
So you'll start to get feedback on that. They'll start
to work it. But you know, I think as we
creep up on July fourth, if it doesn't look like
something has gotten the consensus from both sides of Capitol Hill,
I think the President's going to have to really weigh
in hard. And even then, July fourth is going to
be a tight deadline.
On the subject of twisting arms. It sounds like that's
what the President's try to do as well, with Chinese
President Xi Jinping talking about getting on the phone with
him as soon as this week, Is there any evidence
though that these two leaders could get to talking with
both sides still pretty far apart on the trade front.
Yeah, So, first of all, the Chinese never talk about
this stuff. They never preview calls or anything like that
more than maybe a few hours in advance. But I
was looking back through our coverage, this is the third
time in recent months that the President of the White
House has said they want to have or they expect
to have a call with Shi Jinping soon or eminently.
It hasn't happened yet. And really US China ties have
actually been kind of worsening over the past couple of weeks.
We saw the US restricting sales of jet parts to China,
the software used to design chips, and we've seen them
canceling student visas the Chinese. The Chinese on the other side,
are you know, they've looked at restraint or slowing down
the sale of rare earth minerals to the US. Both
sides have complaints. I don't know if that means a
talk call is more likely or less likely. We'll have
to see how this plays out.
This is Bloomberg Daybreak, your morning podcast on the stories
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