Trump Blasts Xi on Trade Talks; Musk Slams Tax Bill

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, d C, where President Donald
Trump has weighed in on trade negotiations with China.
In an early morning social media post.
The President went on truth Social just after two fifteen
this morning Washington time to write quote, I like President
She of China, always have, always will, but he is
very tough and extremely hard to make a deal with.
The post is raising questions about whether the two leaders
will have a call in the near future, as the
White House has promised. We get more from Bloomberg News
Executive editor for Asia Markets, Paul Dobson.
We've heard all through this week commentary from the US
side talking about don't worry, I'll I'll be all right.
Trump and She will get together and I'll have this meeting.
But China has been completely silent on the matter. Now
you can read something into that both ways, right either side,
because they're just leaving the US hanging, or maybe there's
something coming and you know they don't want to get
ahead of it.
Bloomberg's Paul Dobson reports.
All this comes as both sides have accused each other
of violating terms of their trade agreement in Geneva. The
US has imposed new limits on chips and jet engine parts.
Has also discussed revoking Chinese student visas, while the US
has accused China of slowing exports of rare earth minerals.
Meanwhile, Nathan, President Trump has followed through on a promise
to raise steel and aluminum tariffs to fifty percent. He
announced it to steel workers in Pittsburgh last Friday.
At twenty five percent, they can so to get over
that fence.
At fifty percent, they can no longer get over the fence.
President Trump's new metal tariffs took effect at a minute
after midnight this morning. The new rate does not apply
to British steel or aluminum. The UK is getting a
five week reprieve to negotiate the details of its framework
trade agreement with the US.
I mean well caring.
There are harsh words this morning about President Trump's tax
cut bill from Elon Musk, and we get the very
latest on that now from Bloomberg's John Tucker.
John and Nate, in a post on X must says
Donald Trump's proposed tax bill more than defeats all the
cost savings achieved by the Doze team at great personal cost,
at risk. Earlier Must said, this massive, outrageous Porkfield Congressional
spending bill is a disgusting abomination and shame on those
who voted for it. House Speaker Mike Johnson felt compelled
to respond yesterday with all due respect, my friend Elon
is terribly wrong about the one big, beautiful bill. Well,
the remarks could stiffen resistance and delay enactment of the
tax cuts and debt sealing increase. One Republican fiscal hawk,
Senator Mike Lee of Utah, appeared to endurese Must criticism.
This all highlights the risk that must public stands will
complicate passage. Ali said, in his words, the Senate must
make this bill better. In New York on John Tucker
Bloomberg Radio, all.
Right, John, thank you. Meanwhile, send a majority. Leader John
Thune believes the deal that led to the House to
increase the maximum deduction for state and local taxes to
forty thousand dollars will have to be changed. In his chamber.
Republican lawmakers from states like New York and California demanded
that the salt capy raised well above the ten thousand
dollars limit established in Trump's twenty seventeen tax overhaul. House
Speaker Mike Johnson eventually agreed to the new forty thousand
dollars cap well.
Later this month, Karen, President Trump will attend the NATO
summit at the Hague as he seeks to rally member
nations to step up the fence spending.
We get more from Bloomberg Zamy Morris in Washington.
White House Press Secretary Caroline Lovett I.
Can confirm he will be going to the NATO summit.
Yes.
President Trump has said he wants members of the Alliance
to spend five percent of GDP on the military. That's
a substantial increase for many nations. The Alliance will discuss
a target that would see nations commit to spending three
and a half percent of GDP on core defense and
another one and a half percent in defense related outlays
on areas including infrastructure, cyber defense, and civilian preparedness. The
summit on twenty fourth and twenty fifth will come shortly
after the Group of Seven leaders are expected to meet
in Canada. The status of the war in Ukraine is
likely to be high on the agenda at both meetings
in Washington. Amy Morris Bloomberg Radio.
All right, Amy, thank you. We turned to the markets now,
and stocks around the world have hit a record high.
The MSCI All Country World Index hit an all time
peak for the first time since February, as signs of
a resilient US economy overshadowed uncertainty around trade negotiations. The
S and P five hundred is more than two percent
below peak said earlier this year.
Thanks for individual stocks.
This morning, Karen Shares of Crowdstriker down six and a
half percent. The cybersecurity firm projected sales for the current
quarter below estimates. Jessica Inskip as director of investor research
at stockbrokers dot Com. She says broad adoption of artificial
intelligence will be key for crowdstrikes growth.
From an enterprise level. To bring AI, you need to
go to the cloud, which means you need to have
data store there to have that cloud infrastructure fires a
lot of security, and so it's really on the enterprise level.
But if there is no regulation requirements, it may take
a backseat and that could be a concern.
Stockbroker dot COM's Jessica Inskip says the results were crowd
strikes fourth quarterly updates since last year's software update that
crashed Windows operating systems around the world.
Nathan. After more than seven years, Wells Fargo has been
released from an asset cap put in place by the FED.
The unprecedented sanction was imposed in twenty eighteen under then
FED shair Janet Yellen after a wave of misconduct scandals. Now,
the Fed says Wells Fargo has met all requirements, including
third party reviews and internal reforms. Bloomberg Sally Bakewell says
this is a huge deal for Wells Fargo's CEO, Charlie Sharf.
But ends an era of scandals. It's a huge deal
for Charlie Shaff. Can't be understated or underestimated, I think,
and I think perhaps the shar has not been up
so much is because it was expected. We've seen a
number of consentals come off this year. The bank has
the CEO of particularly has telegraphed that things were going
well and that they did expect to have some sort
of resolution soon.
Bloomberg Sally bake Well says the removal of the cap
ends a costly era for Wells Fargo. One estimate projected
thirty nine billion dollars in lost profits. And shares are
up about four percent this morning.
And shares of Airbus are up more than three percent
this morning. Karen Bloomberg News has learned that China is
considering placing an order for hundreds of Airbus aircraft as
soon as next month. The deal could involve around three
hundred planes. The order would be a significant win for Airbus.
It has gained an upper hand in the Chinese market
due to trade tensions and issues affecting Airbus rival Boeing.
Nathan, a top drinks maker, is feeling the impact of
global tariffs. Konyak maker Remy quantrou is withdrawing its long
term sales guidance. It's blaming tariff policies in America and
China and a stunted recovery in the US market. Remy
and rivals like pernar Rico are facing a ricard rather
are facing challenges that include the suspension of duty free
sales channels in China and the prospect of escalating trade
tariffs in the US. Time now for look at some
of the other stories making news in New York and
around the world, and from that. We're joined by Bloomberg's
Michael Barr Michael, good Morning.
Good Morning, Karen. The Department of Homeland Security says the
wife and five children of the suspect and Sunday's Boulder,
Colorado flamethroaware attack r and i's custody. DHS Secretary Christy
nomesaid the family of Mohammed Solomon is being investigated.
All Mohammed's despicable actions will be prosecuted to the fullest
extent of the law, but we're also investigating to what
extent his family knew about the horrific attack, if they
had any knowledge of it, or if they provided support
to it.
Secretary Nomes says Solomon is an Egyptian national who is
in the country illegally after overstaying his tourist visa. At
least twelve people were injured in the attack, including an
eighty eight year old woman who's the Holocaust. South Korea's
new president Lee J. Mung says he'll pursue dialogue with
North Korea while bolstering a trine lateral partnership with the
US and Japan. Lee won a snap election Tuesday for
a five year term. The Justice Department says two Chinese
nationals smuggled a potential agro terrorism weapon into the US.
It's a fungus that's known to kill crops and be
harmful to humans. The two suspects were allegedly receiving Chinese
government funding for their research. Former counter terrorism official John
Cohen told ABC. In the wrong hands, the fungus could
have disastrous effects on the country.
A fungus such as this could be used to damage
our agricultural industry, infect our food supply, impact our economy,
and harm large numbers of people.
The mayor of Newark, New Jersey, isssuing his state's top
federal prosecutor following his arrest during a protest at an
iced attention center last month. The lawsuit from Oz Baraka
accused his acting US attorney, Alena Hobbo, and a Homeland
Security official of false arrest and malicious prosecution. Baraco was
arrested for trespassing, although Habba's office later dropped the charge.
Baraka is running for New Jersey governor in next week's
Democratic primary. Wildfire smoke from a series of blazes burning
in the Canadian Prairie has drifted across New York, contributing
to a series of air quality alerts in the area
that's threatening breathing problems with children and older adults. Global
News twenty four hours a day and whenever you want
it with Bloomberg News Now. Michael Barn, this.
Is Bloomberg Karen all right, Michael Barr, thank you time
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Good morning, Careen.
Big reason why so many were surprised with the knixt
decision to fire coach Tom Thibodeau is because of how
bad the Knicks were before Thibodeau arrived twenty years only
in one playoff series victory. They had gone through twelve
different coaches in a sixteen year period. Divida on his
first season, took the Knicks from a win percentage of
thirty two up to fifty seven. He was NBA Coach
of the Year, and this season, his fifth, was his best.
Only four NBA teams had more regular season wins. Only
two went further in the playoffs. Leon Rose wins. The
Knicks never talks to the media, did release a statement
that said they want to go in another direction. Perhaps
it's to Michael Malone, a New York native who just recently.
Got fired in Denver.
Mets in LA down four to one early, they came
back once Sot with a two on omer.
Mets led five to four. The ninth that he did
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Their closer, Edwin Diz and Max Munsey with his second
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They went to the Tenthony th left good back coming
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It is hopping around from second, a walk get off
as Temmy Edman Freddie Freeman gets it done opposite field
double the.
N C The car Dodgers won six to five. Yankees
at Stadium got back to back home run seventh and
Ain't from Jazz Chisholm and Anthony Volfy Chishom in his
first game back from injury. Strong pitching from Carlos Rodan.
They beat Cleveland three to two. National has lost of
the Cubs eight to three, Red Sox loss of the
Angels four to three. The Snops have dropped eight at
their last ten. They'll drop the puck tonight in Edmonton,
Game one of the Stanley Cup Final, a rematch of
last year when Florida blew a three nothing series lead
but one game seven over the Oilers. In all American
women's quarterfinal match about to start at the French Open,
it's Coco Golf against Madison Keys, who is eleven to
zero in Grand Slam matches this year.
He just won the Australian Open.
The men today have Novak Djokovic against Atlex Saverro Johns Stashemmer.
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This is Bloomberg day Break. Good morning, I'm Nathan Hager.
On early morning.
Social media post is raising a whole host of questions
about US China relations. President Donald Trump wrote on truth
Social overnight that China's she Jinping is quote very tough
and extremely hard to make a deal with end quote,
raising a point former Acting White House Chief of STAPH
Mick mulvaney made to us this week.
Trump doesn't want to go through the back channels. You
just don't want to go through the ordinary course of business.
That's never been his style as a leader, meaning in
business or in his first term in office. He wants
to talk to the principal. He wants to talk to
President She himself.
Now, that was Acting White House Chief of STAPH mcmulvaney
speaking with Bloomberg from Singapore this week. Joining us this
morning is Bloomberg News Global Trade editor Brendan Murray. And Brendan,
we've talked before about whether President's Trump and she could
have a chat anytime soon. Where does this overnight post
leave that prospect?
Good morning, Well, it seems like the Chinese are really
digging in their heels and not giving President Trump that
call that he's been consistently asking for and White House
officials have been saying could be coming within days. So
it looks like it's at least, you know, weeks, weeks
in the future, if if, if it's going to happen
at all. In the meantime, you know, we've got a
story Bloomberg's reporting today that China is looking at buying
a bunch of Airbus airplanes. So you know that's not
going to be good for Boeing. So it seems that
that China is sort of playing the Europeans off on
on the US, and you know that can only make
Trump even more frustrated given that, you know, but he's trying,
he's trying to make this trade relationship and these talks
come together, and that doesn't look like it's going to
happen as they predicted.
So where does that leave the Geneva agreement that seems
now like it was months ago.
It was only abouts ago, wasn't it?
Yeah, it was three and a half weeks ago, and
it was it seemed both sides are pointing fingers at
each other saying, you know, you didn't live up to
your end of the bargain. The US is withholding Chinese
high tech chips that China wants, you know, access to,
and and and China's withholding uh these rare earth magnets
that are important for UH car production and other kinds
of high tech manufacturing. So you got both sides, basically, UH,
withholding in things that are important in global supply chains
from each other and seeing who's gonna who's going to
crack first? And UH, it would appear that uh, you know,
President Trump had a lot of leverage to begin with,
but that that China has a fair amount of its
own leverage.
We've had the new US ambassador to China, David Perdue
meeting with the Chinese foreign minister in Beijing, uh and uh.
From what we understand, China used that encounter to tell
the US to get the relations back on track.
How does that happen, Brandon?
Yeah, exactly. It just fits with the pattern of Beijing
saying We're not going to have any meaningful discussion with
you until you stop, uh, you know, treating us the
way you're treating us. You know, the US is had
this crackdown on Chinese student visas last week, there was
there was, you know, the a lot of things that
happened geopolitically that the US doesn't like. Marco Rubio was
out talking about the Tieneman Square victims today and so that,
you know, all that kind of stuff is just not
going to make China very happy. So it would seem
the hawks and the doves within the Trump administration aren't
really aligned, and that if you want to do a
deal with China, you know, you can't be coming out
with all these other geopolitical type issues that only anger
the Beijing.
Just thirty seconds left, does the doubling of steel and
aluminum tariffs to fifty percent raise Another source spot for
China as well well.
It raises a source spot with a lot of other
countries that the US needs to help in their efforts
with China. So it's if you're going to if you're
going to confront China and it's over capacity and it's
in the deflation that it's sending around the global economy,
you want the help of your trading partners, and those
are Germany and they're you know, places like South Korea
and Japan. And if you want their help, that's not
going to The fifty percent steel tariff is only going
to increase tensions with them at a time when you
need them to stand together against China. So it's it's
a complicated situation.
This is Bloomberg day Break, your morning podcast and the
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