US and EU Reach Tariff Deal; US and China Hold Trade Talks On today's podcast:

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.
The jump in futures comes as the US and the
European Union have agreed to a deal that will see
fifteen percent tariffs on most EU imports into the US.
The deal staves off an escalation and hostilities in the
world's biggest trading relationship, but many details still need to
be ironed out. President Trump announced the deal alongside European
Commissioned President Ursula Vonderline during his trip to Scotland.
We've reached a deal. It's a good deal for everybody,
I believe, and I think you were saying this is.
Probably the biggest deal ever.
Reached in any capacity trade or beyond true it is.
That's it's a giant deal with lots of countries.
And Bloomberg's Lizzie Burden is covering the president's trip. She
has more from Hernbury, Scotland.
We await the details, but what we know is that
fifteen percent is all inclusive, so Trump can't be stacking
extra levies on specific industries like drugs and chips and cars,
and without a deal, Boombog Economics had estimated that the
US average effective tariff rate in the EU would have
been eighteen percent from Friday from the August the first deadline.
Now that's about sixteen percent, and Vonderlyon admits that this
is the best she could get. Now, how did they
get it over the line. Well, as a sweetener a
bit like Japan had to offer, there was an agreement
to buy seven hundred and fifty billion dollars of American
energy products, to invest six hundred billion dollars in the
US on top of existing expenditures, and to buy vast
amounts of military equipment.
And as film versus. Lizzie Burden reporting from Scotland, where
President Trump will meet with UK Prime Minister Keir Starmer
later today. The British leader will be looking to finalize
his trade with the US and push for a lasting
ceasefire in Gaza.
On top of all that, Karen US and Chinese officials
are meeting in Sweden today to extend their trade truce
beyond it's August twelfth deadline. It'll be the third meeting
in less than three months for Treasury Secretary Scott Besant
and Chinese Vice Premier Huh Lee Fang. Bloomberg's Oliver Crook
is in Stockholm covering that meeting.
The expectations will.
Be somewhat more muted than what we got in Scotland
with the EU, which was amounted to the beginning of
the framework of a comprehensive deal between the EU and
the United States. This is really just an ability, an
endeavor to kick the can a little bit further down
the road, because if just to remind everybody where we
are on the US China tariffs, they were at one
hundred and twenty five percent. They were then reduced now
to the level that they rest at, which is thirty percent.
But that trade truce was basically set to run out
on August the twelfth, which is, as we know, just
about a week and a half away from here.
This is an.
Opportunity for them to begin to discuss some of the
main sort of issues to get a full deal, but
really also to extend that truce for another likely ninety data.
Bloomberg Zoali Crook says any breakthrough today could help set
the stage for President Trump to meet with his Chinese counterpart,
She Jinping later this year.
Nathan questions about the Jeffrey Epstein case are following President Trump.
On his trip, the President was asked whether he rushed
to deal with the EU to draw attention away from
the matter.
Oh, you got to be kidding with it.
No, I had nothing to do with it.
Only you would think that.
But back in Washington, a pair of lawmakers have come
together on a bill that would force the House to
vote on releasing more documents about the pedophile financeer Republican
Thomas Massey.
It would force a full release of the files.
It has the force of law.
It's not a subpoena, it's not a pretty please would
you release the files. It's the force of law, and
it's got protections to redact victims' names and to prevent
release of child pornography.
And Democrat Rocana.
Pam Bondi says there's a client list that she says, no,
it's just a file. She's going to release them. I
didn't criticize them at all those first few months. But
when they refuse to release the files, when they said
there's nothing more to say, that's when we said transparency
demands the full release of the files.
Congress Members Rocanna and Thomas Massey appeared on ABC's This Week,
which can be heard every Sunday on Bloomberg Radio.
Turning to the economy, Now, Karen, we have two key
events awaiting investors this week. On Wednesday, the Fed makes
a rate decision that'll be followed two days later by
the July jobs report. We get a preview from Bloomberg's
Michael McKee.
It's a little like having dessert first. The Fed meets
on interest rates Wednesday, not expected to change anything. Inflation
is rising a little, but Trump's import tax increases haven't
really hit the economy yet. Investors are hoping the Central
Bank will hint at a move in September. That will
depend on the data. Of course, if job growth weekends
further or unemployment rises further, that could prompt a rate cut.
Economists are forecasting both happened during July, but July's jobs
report isn't due until Friday, after the Fed meets. Michael
McKee Bloomberg Radio.
All right, Mike, thank you. It's also a busy week
on the earnings front. Four tech giants will lead the way,
and we get a preview with Bloomberg's Charlie.
Pellin Apple, Amazon, Microsoft and METAP platforms will be among
this week's most closely watched, with AI and tariff some
major focus. John Stoltzfus's chief investment strategist at Oppenheimer.
So, you know, we think this is so far, so good.
That's the remarkable thing, and we like our call where
it is in terms of being bullish, but at the
same time recognizing that there's still some risk within this
tariff regime and where it arrives at.
Also this week, United Health, Boeing, Visa, along with eBay,
Cloud Flare, Starbucks, ups, Exon Mobile, and Chevron. In New
York Charlie Pellett's Bloomberg Radio, all right, Charlie, thank you.
And in more company news, Samsung will produce semiconductors for Tesla.
It's a sixteen and a half billion dollar deal lasting
until twenty twenty three, twenty thirty three. I should say
the contract is a win for or, South Korea's largest company.
It's steadily been losing ground in chip manufacturing. Bloomberg Intelligence
says the agreement could boost Samsung's foundry sales by up
to ten percent a year. In a social media post,
Tesla CEO Elon Musk said the strategic importance of the
deal was hard to overstate.
Time now for a look at some of the o
their 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. It is another hot
and humid day in the Northeast. Bloomberg Mediing religist Craig
Allen has the latest.
Over two dozen states with heat alerts in effect for
today right on through the mid portion of the week,
over one hundred million people with some kind of an alert.
There will be about twenty million people across the southeast
and East central States in an extreme heat risk right
on through Thursday.
Bloomberg Meeting religist Craig Allen. Temperatures are expected to reach
close to the mid nineties for the next several days.
Israel's military has begun a limited pause in fighting in
three populated areas of Gaza for ten hours a day
as part of humanitarian measures, including air drops for food
and medical supplies as concerns grow over hunger. Meanwhile, Israeli
Prime Minister Benjamin et Yahoo blamed Hamas for stealing aid
and called on the United nations to distribute it more effectively.
Stop lying, stop finding excuses, do what you have to do,
and stop accusing Israel deliberately of this egregious falsehood. Several
international organizations and doctors volunteering at hospitals in Gaza reports
starvation deaths among Palestinians there. Doctor Nick Maynard, a surgeon
based in the United Kingdom, volunteers in Gaza every time.
It's much worse than I expected. And the conditions that
I witnessed with my own eyes over the four weeks
I was there until just a few days ago, the
human mianitarian conditions are unfathomable.
Doctor Maynard said. Other doctors have brought in baby formula,
only to have it confiscated by IDF soldiers. Prosecutors say
they plan to file terrorism and assault with intent to
murder charges against the suspect. And a weekend NiFe attack
at a Walmart store in Michigan, eleven people were stabbed
over the weekend at the store in Traverse City. All
are expected to survive. Authorities say forty two year old
Bradford Gilly is in custody. Police say a group of
bystanders intervened and detained the suspect in the parking lot.
Global News twenty four hours a day and whenever you
want it with the Bloomberg News. Now, I'm Michael Barr,
and this is Bloomberg. Karen.
All right, Michael, thank you time now for the Bloomberg
Sports Update, brought to you by Flushing Bank. Here's Dan Schwartzman.
Dan, good morning, Good morning, Kroon and Nathan. Five new
members are welcomed into the National Baseball Hall of Fame,
each ro Suzuki becoming the first Japanese born player enshrined
each row, joined by CC Sabathia, Billy Wagner, and both
Dick Allen and Dave Parker, posthumously one of the best
potential trade candidates leading up to Baseball's trade deadline this Thursday,
will be off the market as last season's al Cian
Award runner up Seth Lugo and the Royals are finalizing
a two year, forty six million dollar contract. The Yankee
snapping the three game losing streak of the four to
three winner of the Phillies in the Bronx ground.
It tap back down the right beild line that'll.
Go over the car.
Standing scores Chishom scores.
Domingos will stop at third.
It's a two run.
Double for McMahon and the Yankees of todde the score.
That's Kurzy the Yes Network. Ry McMahon going two for
three while driving in two runs. Metts winners a seven
trade after sweeping the Giants in San Francisco five to three,
Mets getting homers from both Juan Soto and Ronnie Maurizio. Elsewhere,
Red Sox outlasting the Dodgers four to three, Orioles knocking
off the Rockies five to one, while the Nationals beat
the Twins seven to two. Meanwhile, baseball's home run leader
Cal Rawley hitting his forty first of the season and
a Mariners lost to the Angels, while Mike Trout reaches
a milestone to.
Centerfield rod Dy guys, rock Chap.
That's lay Wow.
That's courtesy of Roku Sports Channel. Trout driving in his
one thousandth runner with a home run in the win.
Bubba Wallace becoming the first black driver to win a
major race on Indianapolis Motor Speedway, winning the Breakyard four hundred,
holding off defending champion Kyle Larson for the win. The
Atcher Bloomberg Sports Update pom, Dan Schwartzman, Karen and.
Nathan coast to coast on Bloomberg Radio, nationwide on Sirius
Exam and around the world on Bloomberg dot Com and
the Bloomberg Business Appum. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. After months of hard fought negotiations,
President Trump and European Commissioned President Ursula Vonderliners celebrating their
trade deal days before the US President's tariff deadline this Friday.
It's a very powerful deal.
It's a very big deal.
It's the biggest of all the deals.
It will be the biggest of all the deals.
It will bring stability, it will bring predictability that's very
important for our businesses on both sides of the Atlantic.
President's Vonderline and Trump announced the agreement at President Trump's
golf course in Turnbury, Scotland. Joining us with the details
is Bloomberg News Global Trade Editor Brendan Murray. And of course, Brendan,
the devil always is in the details. So what's the
devil we know?
Good morning morning. Yeah, So, the as one former trade
negotiator told us, the EU played a bad hand about
as well as it could have no country likes to
see it. It's tariff from another country go up to
even fifteen percent, but still that was half of what
the EU was facing from President Trump. So there's a
sense that they got about as good as a deal
as any other country they could have gotten. Their auto tariffs.
The European cars now face of fifteen percent tariff where
before it was twenty seven point five, so they can
point to a bit of relief there, But the European
auto industry is still says this is still going to
put some strains on them and their ability to sell
cars into the US. So there was a little bit
of a little bit of concessions on both sides. Both
leaders walked away saying this is a win for both
of us. But as you said, the devil is in
the details, and there are a lot of details to
sort out here just exactly how the breakdown of the
European purchases is going to is going to show us.
President Trump said this was going to lead to seven
hundred and fifty billion dollars worth of energy exports from
the US to Europe and six hundred billion dollars worth
of investments that they weren't already going to make so
we need to know what the timetable is on those
and the breakdown of energy products and what kinds of
investments we're talking about.
So it sounds like a lot of similar questions to
what's being asked about the five hundred and fifty billion
dollar investment agreement that we heard about with Japan as well.
So walk us through what we are looking for from
these details.
Well, the two sides. I mean, the main thing that
they did was that things are not going to escalate
on August first, and so that means that the tariff
of thirty percent is not going to take effect. They
will spend the coming weeks going through the fine print
and carrying out the sort of broad outlines of this
preliminary deal that they've announced. So obviously things can change
and people can misunderstand what their intentions are. But if
they keep working at the negotiating table, they can iron
out this deal that President Trump says is the biggest
of all of them. But once you add it all up,
we'll want to take a look under the microscope at
what exactly the fine princess.
I guess there's still a question as well, isn't there
about some of the other sectoral tariffs besides automobiles, particularly
around pharmaceuticals and stealing aluminum.
Yeah, exactly, So the pharmaceuticals, stealing aluminum, cars, semiconductors, those
are all being dealt with under a separate authority. The
President has to impose tariffs. So they've dealt with the
cars at fifteen percent. There's also a pledge in yesterday's
agreement to keep pharmaceuticals at fifteen percent. But the other
question is now what happens with semiconductors. There is a
you know, there are some there's a large Dutch semiconductor
maker that would you know, have a lot at stake
in in what that tariff rate would be. There's also
copper tariffs coming and those you know, we don't know
how broad those are going to be, but there was
Europe is a big supplier of machinery and chemicals and
industrial supplies to the US, so copper tariffs are also
going to be factored in here in the overall tariff
burden that European exports are going to face trying to
get into the US market.
In our last minute, Brendan, we're waiting for a third
round of talks between the US and China. What should
we be expecting there?
Yeah, those are getting up underway in a few hours.
We wouldn't did, and they last through tomorrow. This is
basically the first in what the US hopes will be
a regular conversation with their counterparts in China to make
sure that the relationship, the rivalry stays stable and that
neither side starts escalating things or limiting the exports of
certain things that the other party needs. And so we
would expect this to be a dialogue that produces an
extension of the truth that they already have. So we're
looking at maybe another ninety days into what would be
no November of both sides saying we're not going to
raise tariffs on each other, and that will provide some
stability as the two largest economies try to sort their
problems out.
This is Bloomberg Daybreak, your morning podcast on the stories
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