US-China Trade Talks; India, Pakistan Trade Military Strikes

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Here in the Lift in Futures comes on optimism. Trade
tensions may be easing between the US and China. Treasury
Secretary Scott Bessant and US Trade Representative Jamison Greer will
hold trade talks with China's Vice Premier Halifang this weekend.
The officials are due to meet in Switzerland Saturday and Sunday.
These will be the first confirmed talk since President Trump
announced tariffs of up to one hundred and forty five
percent on Chinese imports and Beijing retaliated with its own levies.
Here's Secretary Besson speaking on Fox News.
I think that this is what we're going to do
in Switzerland is we've agreed to talk. Then on Saturday
and Sunday we will agree what we're going to talk about.
My sense is that this will be about de escalation,
not about the the big trade deal. But we've got
to de escalate before we can move forward.
Treasury Secretary Scott bessen says current teriff rates are not
sustainable and amount to a trade embargo Nathan.
Just hours after the talks were announced, China took steps
to boost its economy. The country central Bank cut its
policy rate and lower the amount of cash lenders must
keep in reserve. Economists say the decisions demonstrate policymakers are
acting with urgency to support the world's second largest economy
in the face of the US China trade war.
Now Karen we turned to a tense situation in South
Asia between two nuclear armed powers. India and Pakistan traded
military strikes overnight, weeks after a militant attack in the
disputed Kashmir region that killed twenty six people. India says
it hit nine targets, calling them known terror camps. Pakistan's
military says the strikes killed twenty six civilians. It responded
by shooting down five Indian jets. We get more from
Bloomberg New Delhi Bureau chief Debjit Chakrabouti.
Both the sites are saying that these were de escalatory
kind of moves. India has said that it only had
one thing in their mind, just to target the militants
which were trying to distabilize the customer region the economic
development of that path. Pakistan has always said that we
won't do anything unless India attacks.
Bloomberg's deb Jit Chakerboard. He says the last time India
and Pakistan came close to all out war was twenty nineteen,
when a suicide bomber killed forty members of India's security forces.
Now if in Former President Joe Biden has described the
White House's approach to Russia as modern day appeasement. Biden
was asked by the BBC what he thought of President
Trump's peace plans for Ukraine.
It is modernday a payment.
Look.
Listen to what Putin said when he talked about going
from Kiev into Ukraine, and why he can't stand the
fact that the Russian dictatorship that he runs, that the
Soviet Union has collapsed, and anybody thinks he's going to
stop is as foolish.
Joe Biden's interview with a British broadcaster is his first
since leaving office.
Karen Senate majority Leader Chuck Schumer is looking for answers
after last month's incident at New Jersey's Newark Airport that
left air traffic controllers out of contact with planes for
ninety seconds. Transportation Secretary Sean Duffy says the air traffic
control system is safe, but MINARDI leader Schumer says he
has plenty of concerns.
First, the firing of so many employees under Doge has
weakened the FAA. Second, a good number of top level
people who are concerned with air safety in flight flight
safety have left out of exasperation because they think the
people who have been put in charge don't know what
they're doing.
Senate MINORTI leader Chuck Schumer spoke on Bloomberg's balance of power.
You can catch the full conversation on the Bloomberg Podcasts
page on YouTube. Transportation Secretary Duffy says a bill out
of a new air traffic control system should be completed
by the summer, but the current one, he says, has
backups for pilots and controllers.
Nathan President Trump met with Canadian Prime Minister Mark Kearney
in the Oval Office. The leaders showed no signs of
retreating from their differences in the ongoing trade war and
Bloomberg's Amy Morris supports from Washington.
After the meeting, Prime Minister Carney says there will be
more talk.
We agreed to have further conversations in the coming weeks,
and we are looking forward to meeting in person at
the G seven summit in Kanamascus and Alberta.
President Trump told reporters there are no firm trade deals
with Canada and China or any other country.
I have to sign deal.
They have to sign deals with us.
They want a piece of our market.
We don't want a piece of their market.
We don't care about their market.
They want a piece of our market.
As for Canada becoming the fifty first state, Carney says
it'll never be for sale, but Trump told Carney never
say never. In Washington, Amy Moore as Bloomberg Radio.
All right, Amy, thank you. Training the markets now as
investors and the Federal Reserve awight clarity on the Trump
administration's trade policies, the FED is expected to leave interest
rates unchanged this afternoon. We get a preview of the
decision today from Bloomberg's Michael McKee.
There's still no suspense at the FED without any clear
idea of who will be taxed, how much and when.
The Central Bank waits like everyone else for some idea
of what the Trump tariffs will do to the economy,
so there's little point in changing interest rates. Fed officials
also don't provide new economic forecasts or a new dot
plot at this meeting, which pretty much leaves Chairman Powell
and his press conference as the only opportunity for headlines, which,
given the circumstances, he will likely avoid as much as possible.
Michael McKee, Bloomberg Radio.
Okay, Mike, thanks and stay with Bloomberg for full FED
coverage on a special edition of Bloomberg Surveillance, the FED decides.
It begins at one thirty pm Wall Street Time on
Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcasts YouTube page.
After nine straight days of gains Nathan's stocks coming off
two consecutive losing sessions, Cameron Dawson, the chief investment officer
at New Edge Wealth, this cautious.
The worst of tariff and trade headlines may be behind us.
It's hard to imagine a worse day than the couple
days posts the Rose Garden announcement. However, we do not
think the worst is behind us when it comes to
real economic data weakening the fundamentals showing the signs of
the weight of these tariffs on them, which just means
that yes, we're getting this relief rally, but we haven't
even begun to see the fundamental impact new Edge.
Welds, Cam Dawson. What other market note. US companies are
planning to buy back their own shares at historic clip.
The value of announced buybacks in the US reached almost
two hundred and thirty four billion dollars in April. Barni
associate says that's the second highest monthly tally in records
going back to nineteen eighty four.
Well, with that in mind, Karen, let's take a look
at some stocks on the move this morning. For that,
we're joined by Bloomberg's John Tucker. John, good morning, Good.
Morning, Nathan. Let's start with the advanced micro devices they
delivered in upbeat outlook. In Vidia's closest competitor in the
area of artificial intelligence processors, predicts strong growth in the
second half of this year. The first quarter sales rose
thirty six percent that topped estimates. At the same time,
though the company warned that US restrictions on sales to
China will cost it one and a half billion dollars
in revenue this year. The share is up two percent.
Pre market super microcomputer shares falling over four percent. The
beleaguer chip maker cutting its net sales guidance for the
full year, and finally, novel nordis trimming its financial forecast.
But investors looking past that, they're focused on expectations that
competition for its blockbuster obesity shot with GOVI will subside
later this year. In New York, I'm John Tucker, Bloomberg Radio.
All right, John, thank you, and weight loss drugs like
ozem Bickham taken their toll on WeightWatchers. The company, which
was endorsed by many celebrities, including Oprah Winfrey, has foiled
for bankruptcy, with Watchers recently rebranded as ww International. Time
now for a look at some of the other stories
making news in New York and around the world, and
for that we're joined by Bloomberg's Michael Barr.
Michael, Good morning, Good morning, Karen.
The papal conclave to elect the new Pope begins today
at the Vatican. Cardinals will participate in mass with the
public before secluding themselves for possibly days of voting. Pope
Francis had been considered comparatively progressive in his views on migrants,
the LGBTQ community, climate change, and more. Bond signor Liam Burgett.
Everybody involved in the conclave takes an oath of secrecy
everybody and they are bound by what's called the Apostolic secret.
So if you betray the Apostolic secret, if you break it,
excommunication is the penalty.
A CBS poll of US Catholics find a majority want
Francis's successor to continue his teachings or move in a
more progressive direction, while thirty seven percent want the next
pope to be more conservative. There have been lawlines at
DMV offices around the country. Starting today, travelers flying domestically
will be required to have a real ID license or
a state identification card or a passport. For those who don't,
they will face extra screening and questioning at the security checkpoint.
There is mixed passenger reaction at Newark.
People have had plenty of time to get prepared for it.
I've had it for five years at least, so back
when they first started talking about it.
It feels like a tax on everyday people having to
upgrade their licenses and all their identification.
In New York City, jury selection and the sex trafficking
trial of hip hop mogul Sean Diddycombs is expected to
wrap up today. Lawyers for the fifty five year old
entertainer and prosecutors have worked for two days to assemble
thirty five individuals for a pool of forty five people
from whom the jury will be picked. Global News twenty
four hours a day and whenever you want it with
Bloomberg News Now. Michael Barrn.
This is Bloomberg karrot rymachelbarr Thank you time now for
the Bloomberg Sports Update. Here's John stash Hour. John, Good morning,
morning Karen.
There's been a lot of heartbreak over the years in Cleveland.
Their teams have won one championship in the last seventy
seven years. High hopes with the Cavaliers had a brilliant
sixty four win regular season, but they're in big trouble
in the second round lost the opener, had to play
Game two without three key injured players. Still had a
twenty point lead on Indiana. Cavs were up by seven
with fifty seconds to go back. Came the Pacers down
to and at the free throw.
Line, Missus Halliburton the rebound nine seconds.
If they do have a timeout, Carlisle's gonna let them play.
Halliburton steps back, hats.
Tyrese Halliburton try to take.
Cleveland's heart on TNT. Pacers won by a point, go
home up to nothing in the series. Golden State won
ninety nine eighty eight Minnesota. The road teams so far
in the second round of the playoffs are five and oh.
That includes the Knicks, who've got Game two in Boston tonight.
Sounds like Christoph's Porzingis will play for the celt They's
played only thirteen minutes Monday due to an illness, didn't
score a point. Road teams also won on the ice
Paras Series openers Carolina top Washington two to one in overtime.
Edmonton a four to two win in Vegas. The Yankees
went to the seventh day at the Stadium trailing San
Diego three to two, and then they scored ten runs,
including an Austin Wells Grand slam of the Yanks one
twelve to three. Mets held the four hits in a
five to one loss at Arizona. John Stashed were Bloomberg
Sports Caroen Nathan.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. The US and China are
about to start talking after weeks of rising trade tensions
and rising tariff rates. Treasury Secretary Scott Besson says both
he and the US Trade representative we'll meet with Chinese
officials while they all happen to be in neutral territory Switzerland.
We will meet on Saturday and Sunday, and look, we
have shared interest that this isn't sustainable.
Treasury Secretary Scott Besson discussed these upcoming talks on Fox
News and This Morning, where you're joined by Bloomberg News
Senior editor Bill Ferries. So, Bill, after weeks of questions
about whether there were talks happening, they're talking about talking
about talking, and I guess that's enough to give the
market some reason for optimism. This morning, Good morning.
Good morning. For sure, you know, this is a fairly
high level meeting after we haven't really seen any high
level meetings between the US and China so far. We
still don't have any knowledge of any public conversation between
Donald Trump and Chijinping. So this does seem to show
that maybe both sides have reached a bit of a
pain point and are willing to talk. I mean, we
know we've seen data on the Chinese side showing that
cargo ships headed to the US, the number of cargo
ships headed to the US is down. We've seen that
the trade deficit the US has really ballooned in the
last report because of so many people, so many businesses
trying to bring in goods ahead of those reciprocal tariffs
and some of the other trade barriers that went up.
So both sides with a strong incentive to talk here,
it is seen on the Chinese side is important that
it's the Vice Premier Hillafeing who is meeting with Scott
Bessen and Jamison Greer, So you have people at the
table who can make decisions. And I think there's going
to be a lot of interest, certainly a lot of
expectations about what might come out of these two days
of meetings this weekend.
And ahead of those two days bill we've seen the
Chinese government lower its policy rate and loosent bank reserve requirements.
Of course, President Trump has been talking about maybe little
girls don't need as many dolls under the tree this Christmas.
What kind of prolonged discussion could both sides potentially be
bracing for here.
Yeah, I think the you know, I don't think there's
an expectation that there's going to be a huge breakthrough
this weekend in terms of a major trade deal, but
you certainly could have some de escalation. And that's what
Treasury Secretary Scott Beson was talking about. He says, what
we you know, he said, what this current situation is
not sustainable and a de escalation what is that? You know,
there's some speculation that that could mean just at least
trimming back these you know, one hundred and forty five
percent tariffs that the US has on China and the
one hundred and twenty five percent tariffs China has on
the US. Both sides have exempted a lot of goods
from those tariffs, but still the trade is falling very quickly,
and you know, you're talking about you're talking about trade
that take could take months to recover. So even if
even if there was a big agreement this weekend, it
would be months before you kind of make up for
the shortfalls that are that occurring over the past several weeks.
Well, Bill, it seems like we're far from de escalation
when it comes to what's happening in South Asia. After
that deadly militant attack in Kashmir, there have been tit
for tat strikes between India and Pakistan. What's the latest, Yeah.
Still very tense situation. India conducted a series of military
strikes just after midnight, hitting nine targets in Pakistan and
in the Kashmir area. Pakistan saying twenty six people were killed,
twenty six civilians. India saying that did not hit any civilians.
Pakistan also saying that five Indian jets were shot down.
I was listening to the Indian news conference about that earlier.
They did not take questions and they would not address
They did not address whether any jets were shot down.
So still very much of developing situation. Obviously, two nuclear
powers in a conflict here, and it is seen as
the biggest escalation between the two in almost almost six decades.
So a very tense situation. It's still unfolding. We're waiting
to see if Pakistan responds again to these latest strikes.
This is Bloomberg Daybreak, your morning podcast on the stories
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