President Trump Hints at Trade Deal; Why the Fed Left Rates Unchanged

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hagen and now I'm lak smite
out Lisa. The lift in stocks this morning comes as
the US is set to unveil its first major trade deal.
Bloomberg News has learned President Donald Trump will announce an
agreement later this morning with the UK, and that announcement
will come in Washington. We begin our team coverage this
morning with Bloomberg News Senior editor Derek Wallbank.
Well, I think it's significant in a couple of different ways,
regardless of what's actually in it, because it's going to
provide a framework for seeing what is going to be
able to lower the temperature in trade talks with the
United States.
Right.
This has been one of the things we've seen since
the Liberation Day stuff in early April. There's been a
giant question of what it was going to take to
get an actual deal inked. This looks like it's going
to be the first deal of some substance.
Bloomberg's Derek Whilebank says any deal would come with significant caveats.
Full scale trade pacts typically take years to negotiate.
Naythan UK Premier Keir Starmer also speaking about the trade talks,
Bloomberg's un Pots continues our team coverage from London. Good
morning you in.
A deal with the United States has long been the
holy grail of UK trade policy. Imports from and exports
to the world's biggest economy total more than three hundred
billion dollars a year, an account for one pound in
six of all UK trade. But politically a deal has
always been fraught with risk for the UK, with many
fearing a lowering of food standards and more corporate involvement
in the healthcare sector. UK Prime Minister Kiss Starmer spoke
in London this morning.
The United States an indispensable ally for economic and national security.
As you know, talks with the US have been ongoing,
and you'll hear more from me about that later today.
UK Prime Minister Kis Starmer. Bloomberg understands that recent talks
have included reducing US tariffs on cars and steal with
tech and AI another focus of negotiations. But how far
the two sides straight into more controversial policy areas and
how deep the tariff cuts will go? While we'll find
out later today in London. I'm un Pot's Spoomberg Radio.
All right, you and thank you. Meanwhile, President Trump says
he is not willing to lower tariffs on China to
spur more substantive trade negotiations.
There.
We get that story from Washington and Bloomberg's Amy Morris.
During the swearing in ceremony of Trump's new ambassador to China,
David Purdue, a reporter asked the president if he would
pull back those one hundred and forty five percent duties
on Chinese imports.
Are you open to pulling back your tariffs in order
to get China to the negotiating table. No.
President Trump has said that he is willing to lower
tariffs on China at some point, but also that US
consumers should be ready to accept some higher prices. The
president's comments came just a day before Treasury Secretary Scott
Besant and Trade Representative Jamison Greer are set to meet
in Switzerland with China's Vice Premier on trade. In Washington,
Amy Morris Bloomberg Radio.
All right, thanks, Amy. Tensions continue to escalate between India
and Pakistan this morning. Pakistan's military says it's shot down
more than two dozen drones from India in an attack
that killed one civilian and wounded four soldiers. This follows
a day when India struck what it called known terror
camps inside Pakistan, killing thirty one people, according to Pakistani officials.
Hostilities have been rising since a militant attack in the
disputed Kashmir region last month that killed twenty six people,
most of them Indian Hindu tourists Lisa.
Bloomberg News has learned that Trump administration plans to rescind
Biden era AI chip curbs in a bid to revise
semiconductor trade restrictions. The existing measures have been heavily criticized
by major tech companies and foreign governments. The repeal is
yet to be finalized, but it looks to abolish the
tiered system that was created to regulate chip exports from
the likes of Nvidia and other firms. Bloomberg News Senior
Tech editor Michael Shepherd says the move would be a
victory for Big Tag.
It's a win for in Vidia, which is pressed for
a total repeal of these chips curves. It's known as
AI diffusion rule, and it really has caused a lot
of consternation in the industry because they see it as
something that will have the perverse effect of throwing countries
and their companies into China's arms seeking access to advanced
AI technology.
Bloomberg's Mike Shepherd says the Trump administration won't enforce the
curve known as the AI Diffusion Rule when it takes
effect on May fifteenth. Chip stocks led by Nvidia are
rising this morning. In Vidia shares are higher by nearly
two percent.
And turning to the economy now, Nathan Fedcher J Powell
says the future of interest rates will not be determined
until there is more clarity over trade policy. Let's get
the latest with Bloomberg's John Tucker.
John, Good morning, Lisa. The message from Powell and the
Fed is there's no rush to cut rates.
We don't think we need to be in a hurry.
We think we can be patient. We're going to be
watching the data. The data may move quickly or slowly,
but we do think we're in a good position where
we are to let things evolve.
Powell and his colleagues held to interst rate steady. Former
New York Fed President Bill Dudley says tariffund certainly leaves
the Fed little choice.
So in that environment, it's sort of like, you know,
the Hippocrat up, do no harm to your patient.
Powell acknowledged that consumer and business sentiment had darkened amid
the Iranic tariff announcements, but he also said the hard
data is still paint a picture of a healthy economy.
Well.
The futures Marcus show investors still expect three interest rate
cuts this year, with odds of the cut as early
as July at about eighty five percent in New York.
I'm John Tucker, Bloomberg Radio.
All right, John, Thanks. We got a few rat decisions
in Europe this morning. The central banks in Sweden and
Norway left their policy rates unchanged. In the UK, the
Bank of England is expected to cut rates a quarter
percentage point. Economists say the BOE may signal another move
in June, potentially putting that central bank on course for
its first back to back reductions since two thousand and nine, and.
Checking some stocks on the move this morning, shares of
Armholdings down about ten percent. The chip company gave a
lack lesser sales forecast for the current period, saying that
the timing of the new licensing agreements has made it
cautious about predictions for the future.
And Lisa Google is recouping some of its seven percent
declined from yesterday, and the pre market it's up two percent.
That follows news that Apple is considering a revamp to
its Safari web browser to focus on AI powered search engines.
Apple's senior vice president of Services Atiq, made the disclosure
during testimony and the Justice Department's lawsuit against Google parent Alphabet.
Bloomberg Tech reporter Jackie Davolos says the move could potentially
end Apple's lucrative longtime partnership with Google.
When it comes to large language models, there's a new
model out almost every month, and I think it shows
an openness to remaining nimble with the different players out there.
It might be open AI one day, but you have
other smart competitors like a Perplexity, So it really shows
that if they're not taking a one company approach this time,
they're going to diversify.
Bloomberg's Jackie Dovolos ads Apple's Eddie Q believes AI search
engines could replace standard search engines like Google.
Any time out for a look at some of the
other stories making news in New York and around the
world where that were joined by Bloomberg's Michael Barton Morning
Michael Good.
Morning, Lisa. The New York Police Department says more than
seventy people were arrested after masked protesters occupied Columbia University's
main library. Police entered Butler Library hours after protesters, many
wearing face coverings, took over part of the building and
drape Palestinian flags along its walls. This Columbia student was
critical of the university.
It is a disgrace to Elee University that this is
still allowed to happen again, especially during finals.
It's the same repetition as last year and most protesters.
And administration has apparently learned nothing Following.
Pro Palestinian protests on the campus last year. The Trump
administration cut more than four hundred million dollars of federal
funding to Columbia, accusing the Ivy League university of failing
to protect Jewish students from harassment. The cardinals of the
Catholic Church returned to the sixteen Chapel this morning for
more votes on a new leader of the church. It
comes after day one of the conclave did not elect
a new pope at the Vatican. Reverend Tom Rees, senior
analyst for the Religion News Service, says the vote went
as expected.
I guess it went longer because we had more cardinals
than last time, one hundred and thirty three to twenty
percent more cardinals than we're here last time.
At least two thirds majority is needed, or eighty nine
votes from the cardinals. In the crowd of thousands in
Saint Peter's Square, this woman from Chicago says she's praying
for whoever is elected.
We were just so divided as a world, so it
would be nice to just send someone with a lot
of love.
Still no Jerry yet. In the trial of music mogul
Sean Diddy Coombs facing sex trafficking charges, it took three
days to get forty five perspective jurors in place, but
the judge wants to do a final selection on the
jury tomorrow. Opening statements are set for Monday. President Trump
is tapping case he means to be the next US
Surgeon General after his prior nominee was withdrawn shortly before
her confirmation. Hearing means replaces his prior nominee, Jeannette Nessawatt,
came amid pressure from far right activists like Laura Lumer,
who criticized Nesshawatt for being pro vaccine. Global News twenty
four hours a day and whenever you want it with
the Bloomberg News. Down now, Michael Bayr and this is
Bloomberg Lisa.
Thank you, Michael. It is time now for our Bloomberg
Sports Update. For that we bring in John stash Hour.
Hey there, John Bailey.
So so the.
Knicks one Game one in Boston by coming back from
a twenty point deficit by forcing the Celtics into far
too many missed three pointers end with Michel Bridges making
a big defensive play at the end. Forty eight hours later,
all of that happened again in Game two next with
a fourth quarter run of two twenty one to two.
Celtics missed thirteen shots in a road didn't score a
basket for eight minutes. Jalen Brunson scored with two minutes
left for the next first lead of the night. They
went back ahead on two brunts and free throws with
twelve seconds remaining. Last chance for Boston.
It's Tatum ronson job Tatum and.
A teen.
A right to six.
Take cut it takes one.
New York has cut off two games ten one eighty
sevens kain efetien noun tnt. It was Bridges making the
play on Jason Tatum as he did on Jalen Brown
in Game one. The Knicks one ninety one to ninety
out come home for Game three Saturday, so some time
for the Celtics to think about. Seventy five missed three
point shots over the first two games after road teams
were six and zero. In the second round, Oklahoma City
did win at home by forty three over Denver. That
series title one. Golden State plays Game two tonight at Minnesota.
F Curry won't play due to a hamstring injury. Stanley
Cup Playoffs Toronto bet Florida four to three, leads the
series two nothing. Dallas won Game one at Winnipeg three
to two at the Stadium of the Yankees, held hitless
by San Diego's Dylan Cease until the seventh inning, but
laid home runs by Cody Bellinger and Trent Grisham. Yanks
went on to beat the Padres four to three, and Tendings.
Mets won seven one at Arizona won sotohomer twice. The
Ryder Cup coming to Long Island in September. The PGA
is giving away three thousand free tickets, doing it randomly
at Bethpage Black and other area golf courses. John Stashedwer
Bloomberg Sports, Lisa and Nathan.
Coast to coast on Bloomberg Radio, nationwide on Sirius Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. Earlier this week, President Donald Trump hinted
as something coming this week during his Oval Office meeting
with Canadian Prime Minister Mark Karney.
We're gonna have a very very big announcement to make,
like as big as it and I won't tell you.
On what, but and it's very positive.
And this morning we may know what that announcement is.
Bloomberg News has learned President Trump will unveil a trade
deal with the United Kingdom in an Oval Office news
conference later this morning, joining us ahead of it. Rosalind
Mathis and Bloomberg's News director for Europe, the Middle East
and Africa. Roz, it's great to speak with you this morning,
and we do know that the President has an announcement
from the Oval Office on his schedule officially, what more
do we know about what we're expecting at ten am
Wall Street time, Well as.
You say, what we're expecting at least is an announcement
of some kind of trade deal agreement slash framework between
the US and the UK. This is probably not This
is not going to be a full throated trade deal.
Those things take years to negotiate you, let alone implement.
But what it might be at least is a bit
of a roadmap for the conversation going forward. So if
framework and MoU for how talks between the two will
proceed in a sense of the parameters for those conversations,
I guess the question we're all wondering is will it
include any immediate tariff relief for the UK, particularly around
two things steal and cars? And the UK has also
been very concerned about pharmaceuticals and increasing also the film
industry in just recent days. But will it be that specific?
Will it lead to some kind of understanding that allows
the UK to get immediate tariff relief from the US
even as his conversations go on. So it'll be interesting
because for other countries who are looking on it might
provide a bit of a framework or a guide to
how to precede themselves with the US. And obviously the
UK would be able to claim at least that first
mover advantage with the US, with Donald Trump saying we
are the first country in the queue to have achieved
this goal.
How significant is it roz for the US to have
that first mover advantage when so much of the focus
with Treasury Secretary Scott Besson talking about these going talks
to something like seventeen or eighteen countries being on trade
partners in Asia and India specifically as well well.
Obviously it comes ahead of the US China talks this weekend,
which will be potentially very significant again of feeling out
exercise between those countries. But as you say, you know,
big economies in Asia, Japan, India, we're possibly hoping to
get there first. And it's not as so they're rushing
to negotiate a deal that you know, a bad trade deal,
a quick deal. What they want at least is to
be able to say that they've reached that MoU level
with the US of understanding of how to proceed with
more specific trade talks, and with Donald Trump, it's about
the psyche of how you negotiate and deal with the
US President that getting in the first in the line
that probably means something at least You're going to stick
in Donald Trump's head as the country that was first
able to get there to meet his expectations enough to
announce something, and he likes to announce a win. So
for the UK, symbolically, it's probably a bit of something
and maybe a little bit disappointing as a result for
countries like India and Japan.
I want to talk a little bit more about that
symbolism as well for the UK ras because I mean,
this was a golden ring for Boris Johnson after Brexit
and Rishi Suna kind of put a bilateral trade deal
on the sidelines a bit. How significant is it? The
Kere starmer potentially is going to get this deal got
about a minute left.
Pretty good for him, although again the question is how
much does trade seal to voters, And there's a lot
of complications here. UK voters won't want to see something
that they feel is negative for the UK, and there's
lots of tricky issues here around agricultural goods, drug pricing,
tech and AI even and so on. So they'll be
scrutinizing this to see what are the parameters for the
conversation going forward and how much does it benefit or
not the UK, but a bit of immediate tier for
relief would obviously be welcome no doubt as well, so
Ko Stammer might be able to claim the win on that.
This is Bloomberg Daybreak, your morning podcast on the story
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