US-EU Speed Up Trade Talks; Trump's Latest Harvard Threat

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 lift in futures comes on optimism on the trade front.
The European Union says it has agreed to accelerate negotiations
with the US to avoid a transatlantic trade war. The
move comes after President Trump extended his deadline to hit
the EU with fifty percent tariffs by more than a
month to July ninth, to allow for more negotiations. We
get more from Bloomberg's Oliver Crook.
It has been very difficult to get any idea of
where the kind of hard points of negotiation are. The
EU has put forward a number of proposals, probably all,
you know, somewhat too abstract for the Trump administration, which
is really just concerned with big dollar figures and sort
of big wins. And of course the difficulty the EU
has as it is an institution that is not, you know,
singularly best optimized to negotiate with a administration that can
move very very quickly and very mercurely because they're twenty
seven different member states.
Bloomberg is Oliver Crook says President Trump's fifty percent terriff
threat would hit three hundred and twenty one billion dollars
worth of goods trade between the US and the EU.
Nathan, let's get the latest now in the trade war,
which Shinea Bloomberg News has learned. Chinese President Shixin Ping's
government is considering a new version of its Made in
China twenty twenty five campaign to boost production of high
end technological goods. Policymakers are also looking to maintain this
share of manufacturing and gross domestic product at a stable
level over the medium to long term.
And Karen, President Trump is airing more frustration with Russian
President Vladimir Putin.
I'm not happy with what Putin's doing. He's killing a
lot of people, and I don't know what the hell
happened to Putin. I've known him a long time, always
gotten along with him, but he's sending rockets into cities
and killing people, and I don't like it at all.
Okay, The President says he is absolutely considering sanctions against Russia.
That's as it launched its largest drone barrage yet against
Ukraine over the weekend. The Kremlin is dismissing the president's
comments as an emotional reaction. Meantime, German Chancellor Friedrich Merritt
says Ukraine now has permission from its allies to strike
deep inside Russia. He says that includes weapons provided by
the US. Previously, the US had authorized use of its
attacker's missile system in Ukraine's border regions with Russia.
Nathan President Trump is ramping up a fight with Harvard
University even further, and a truth social post, the President
said he's thinking of diverting three billion dollars in grants
from the Ivy League institution to trade schools across the country.
The president wrote, quote, what a great investment that would
be for the USA. The Trump administration has already frozen
two point six billion dollars in federal research money for
Harvard and moved to block it from enrolling foreign students.
Harvard won a temporary court order against that ban. The
university has called all these moves to change its governance
and diversity practices and infringement on academic freedom.
Turn back to markets now, Karen bonds are rallying worldwide.
That's after Japan indicated that it's looking to stabilize its
debt market after weeks of rising yields. The move from
Japan suggests it is trying to stabilize a market where
relentless selling has pushed bond yields to record highs. A
sale of twenty year debt last week got the weakest
demanded more than a decade.
Nathan Shares of US Steel are up almost two percent
this morning. President Trump has reversed himself and appears to
have given his blessing to a deal with a Japanese
industrial heavyweight. I we get more with Bloomberg's John Tucker, John,
Good morning.
Yeah, Good morning, Karen. President Trump announced a planned partnership
between US Steel at Japan's Nipbon Steel, claiming it would
create at least seventy thousand jobs and add fourteen billion
dollars to the US economy. Well, steel workers like Glenn
Thomas reacted through the news.
I'm elated, overjoyed.
I'm happy for all the families that are going to
be able to keep sending their kids to college, paying
their mortgages, and feeding their families.
However, investors, executives, and diplomats are still unsure of what
exactly the President agreed to is unexpended announcement on Friday
stop short of explicitly endorsing Nippon Steals for Poll's fourteen
point one billion dollar cash takeover of US Steal, instead
asserting that the company would remain in America, as followed
seventeen months of negotiations, and after a twenty one percent
jump on Friday again, US Steal shares this morning are
up one point seven percent in New York Ime John Tucker,
Bloomberg Radio.
Okay, John, thank you know. One of the biggest events
this week comes tomorrow when Nvidia reports its quarterly results.
The chip making giant is seen as a bellweather for
so called growth stocks, and the sustainability of the artificial
intelligence boom. Its outlook will be crucial given macro risks
and tariff uncertainty. We get more from Bloomberg Intelligence Global
head of Tech Research Mandieve saying.
Overall, look, the market is still undersupplied and Nvidia chips
are still the most performant when it comes to accelerators
that you need for AI. So from that perspective, I
mean Nvidia still has that mode when it comes to
the AI accelerator market.
And you've seen Bloomberg Intelligence notes and video shares have
surged thirty nine percent since they had a fifty two
week low on April fourth. This morning, they're up nearly
three percent.
We turn to the economy now. Nathan and ahead of
the Minneapolis Fed says Rache should stay on hold until
more clarity emerges from the trade war. Neil Cashcarri smoke
with Bloomberg in Tokyo.
Is are going to be clear enough by September.
I'm just not sure right now.
Ultimately, we'll have to see what the data says, but
we'll also have to see how the negotiations are going.
Minneapolis VENT President Neil Kashkari is not a voting member
of the policy setting Federal Open Market Committee this year.
Stick with the Bloomberg for full cover to the Federal Reserve. Today,
we speak with Richmond FED President Tom Barkin. That's at
nine to thirty Wall Street Time on Bloomberg Radio, Bloomberg Television,
and the Bloomberg podcast page on YouTube.
Well care on the head of the European Central Bank,
Christine Leguard says the White House's erratic policies are an
opportunity for the euro. She suggests the US could be
undermining the dollar's role as the world's reserve currency. In
a speech this morning, the Guard said this could be
the moment the Euro goes global.
Moments of change can also be moments of opportunity. The
ongoing changes create the opening for a global euro moment,
and this is a prime opportunity for Europe to take
greater control of its own destiny. But let's not fool ourselves.
It is not a privilege that will be bestowed upon US.
ECB president Christine Leguard is calling for a closer single
market and more joint EU financing to make the block
more financially attractive.
And we stay in Europe, Nathan. HSBC has fired more
than two dozen of its top analysts. Bloomberg has learned
the cutbacks are mostly in Europe and include a global
head of fixed income research, Stephen Major. 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 Bloomber's Michael Barr.
Michael, good morning, Good morning, Karen. British police say an
incident in which a mini van hit crowd celebrating Liverpool's
soccer victory is not being treated as terrorism. Merseyside Police
said a fifty three year old man believed to be
the driver, has been arrested and they are not looking
for anyone else. Authority say twenty seven people were taken
to the hospital, with two suffering serious injuries, and another
twenty were treated at the scene from minor injuries. Nick
Seerly is the Chief Fire Officer for Merseyside Fire and Rescue.
On arrival the Cruise of Mats with numerous injured people
of four persons trapped under a vehicle, our crews rapidly
lifted the vehicle with three adults and one child from
beneath and passed them to our Ambulance Service colleagues.
The crash happened at the end of the team's bus
parade through the city after winning the Premier League this season.
Former US Representative Charles Wrangle of New York has died.
The outspoken, gravelly voiced Harlem Democrats spent nearly five decades
on Capitol Hill and was a founding member of the
Congressional Black Caucus. Former New York Republican Congressman Peter King
says despite his prominence, Wrangle stuck close to his roots.
We were in different parties, but we were good friends.
He was loyal, he was a troop patriot, and I
was I was concerned he was missed in New York.
A veteran of the Korean War, he defeated legendary Harlem
politician Adam Clayton poll in nineteen seventy started his congressional career.
In twenty ten, the House censured Wrangle following an ethics scandal,
but he stayed in Congress until twenty seventeen. His family
said Wrangle died Monday at a New York hospital. Charles
Wrangle was ninety four. Louisiana's Attorney general says that three
more people who'd escape from a New Orleans jail earlier
this month have been captured, leaving two escapees at large.
Raphael Guineacci of the New Orleans Metropolitan Crime Commission is
worried about public safety for a couple of reasons.
The fact that two hundred officers have been working trying
to find this means that their other responsibilities have suffered.
Meanwhile, nine people face charges of assisting in the escape
or hindering the apprehension of the prisoners. Global News twenty
four hours a day and whenever you want it with
Bloomberg News now Michael Barr, and this is Bloomberg Kearn.
All right, Michael Barr, thank you. Time now for the
Bloomberg Sports update. Here's John Staneshauer.
John, Good morning, morning Karen.
The Yankees spending the week in Southern California, three games
with the Angels and then the weekend World Series rematch
with the Dodgers in Anaheim. The Angels off the game
of the home on It was one one fourth inning.
Yanks had the bases loaded in their short stop at
the plate.
He's in the center field of deep teller back, still back.
It's over his head. If one hop up against the wall.
Wishop scores, Judge scores, Pire comes Pellinger pill score.
That's up, bases clearing, double one, bumpy head. The Yankees lead.
Four to one, Yes Network the call. Yanks won five
to one. Other strong start for Ryan Yarborough. After the
home run, he allowed only one hit in six innings.
Yanks since May fifth, or fourteen and four, the Mets
at City Field are twenty and six. Shout out until
the eighth inning. They tied the game and then beat
the White Sox to the one on a Francisco indoors
sack fly bottom of the night. The Red Sox third
loss in a row three two at Milwaukee. NBA Playoffs.
Oklahoma City lost Game three at Minnesota by forty two,
but one game four by two one twenty six. Shay
gilges Alexander forty points. He was an assist Shy of
a triple double in the West Finals are three to
one thunder heading back to OKAC a huge Game four
tonight in the Indiana had the big comeback in the
series opener. The Nicks in Game three had their third
straight road wind where they were once down by twenty
There coach Tom Thibodeau asked about all the comebacks.
I know you guys like roll your eyes when they
say no lead is safe. But no lead is safe
because I think with the three point shot, people make
up ground quickly. Pace the game, make up ground quickly,
so you see comebacks all the time, and if you
let up just a little bits, that's what happened.
Nix in the playoffs six and one on the road.
Those six wins by total only sixteen points. Stanley got playoffs.
Carolina stayed alive. A three nothing went at Florida. Novak
Djokovic j Andcoco Goff among those with first round matches
this morning at the French Open. John Stashaware Bloomberg Sports
can't even.
Coast to coast on Bloomberg Radio nationwide on Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. The European Union says it
helps to put trade talks with the US on a
fast track. That's after European Commission President Ursula Vonderline wanted
delay on President Trump's threat of fifty percent tariffs on
the block until July ninth.
She asked for an extension in the June first date,
and she said she wants to get down to serious negotiation.
That was the President announcing that delay to reporters over
the long holiday weekend. This morning, we're joined by Bloomberg's
Oliver Crook. So, Oliver, this is quite the turnaround from
when President Trump just last Friday was saying talks with
the EU were going nowhere to announce that threat. So
where do things stand this morning.
Well, listen, they may not have made a huge amount
of progress since then. Again, Ursula Vonderline got on the
phone after that announcement on Friday that the US was
going to target the EU with fifty percent tariffs that
would kick in theoretically next Sunday. That was pushed back
to July the ninth, the original deadline for the Liberation
Day pause on tariffs. And right now, what the European
Commission is trying to communicate is that since that conversation,
they're now on a quote unquote fast with negotiations with
the United States. We should say this is not a
sentiment that has been reflected by the United States. We
know that the Trump administration has been very frustrated with
the EU because they feel that their proposals are too abstract,
not really gibbringing them what they want to hear. On
the EU side of things, they feel that the Trump
administration is not making their desires very clear and there's
not a clear path forward. And this is what led
to basically the Trump administration turning up the pressure on
the situation to see if the Europeans can rustle something up.
What it seems like the state of play is now
is the main trade negotiator here in the EU. Sefkovich
will be taking the lead on industrial items such as steel, aluminum, cars,
pharmaceutical semiconductors, those sorts of things, and then that is
going to be split to parallel talks that will deal
with some other terriffts and then the non tariff barriers.
And this, Nathan, is where things get really complicated from
the EU standpoint, because remember the Commission is negotiating for
twenty seven different countries. The Trump administration doesn't just care
about tariff levels, they care about these non tariff barriers.
A lot of those issues go into sort of domestic
political law. Ways it's on tax, whether it's on regulation,
and that you cannot just do with the stroke of
a pen from Brussels.
Even without a stroke of a pen. All this raises
the question, Oliver, whether July ninth is enough time in
and of itself that's just a little bit more than
a month away.
Yeah, I think it is a very very big question.
And I think that the Trump administration's gamble on all
of this stuff is that it's going to hurt their
counterparts more than it's going to hurt them. And that'll
probably be true for the European Union because they run
a trade surplus of about two hundred billion dollars worth
of goods with the United States. That being said, you know,
according to the calculations that our economists do here at Bloomberg,
it could cost you know, in terms of US GDP
if you do hit the EU with fifty percent tariffs
about zero points six percentage points of growth, and it
would also be inflationary for the United States. So I
think it is in both interests to get this trade
deal through. This is a trillion dollars worth of trade
every year. This is the biggest trading relationships that exist
across the world. But that is also the reason that
both sides need to be happy with the outcome, because
there's so much money at stake here that both sides
need to be satisfied with what they get out of
this deal, and they're going to be living it with
it potentially for a very long time into the future.
So in our last minute, Oliver, what are we looking
for next, particularly when the US is focused as well
on trade negotiations with your with Asian nations as well
as you know most in the foreground China.
Yeah, I mean, something that I've been a little bit
sort of confused by is why we're not leaning more
on the European side on buying more weapons from the
United States. You have in Germany, for example, this massive
fiscals push. They basically they took away this debt break
which limited how much they could borrow. They now can
basically borrow, you know, infinitely to buy weapons and arms.
And there's really only one place you can buy that farm.
That could be one place you could make substantial progress
in terms of closing the trade and balance. LNG is
another place we'll be looking there for any sort of
concrete numbers. And of course we know that Trump administration
loves a big number. So if you were to say, hey, listen,
we the Europeans are willing to buy you know, a
trillion dollars worth of defense equipment and LNG over the
next ten twenty years, potentially that get you somewhere with
the Trump administration.
This is Bloombergy Daybreak morning podcast on the stories making
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