Trump Strikes Trade Deal With Japan, Microsoft Warns of Nuclear Security Hack

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 with new developments on global trade. President
Trump has announced a deal with Japan that sets tariffs
on the country's imports into the US at fifteen percent.
The agreement spares Japan from a threatened twenty five percent
rate that was saved to take effect next week. Crucially
for Japan, the fifteen percent rate covers cars and car
parts exported to the US. In return, the country will
accept cars and trucks built to American safety standards. Here
is President Trump discussing the deal.
We worked on it long and hard, and it's a
great deal for everybody. I always say it has to
be great for everybody. It's a great deal. A lot
different from the deals in the past. I can tell
you that now.
A centerpiece of the deal is a five hundred and
fifty billion dollar fund backed by Japan to make investments
in the US. Details on that still to be hammered out.
Japan's also agreed to buy one hundred Boeing aircraft, boost
rice purchases, and increased defense spending with US firms. President
Trump is also pledging to guarantee Japan the lowest global
rate on forthcoming sectoral tariffs that's expected to include semiconductors
and pharmaceuticals.
He even shares in Japanese carmakers in Tokyo jumped on
the trade agreement. Toyota rose fourteen percent, Honta gained eleven percent,
and Nissan rose more than eight percent. Automakers also rising
in Europe. Shares and Mercedes and Porsia are at more
than five and a half percent.
And Karen.
The trade deal comes as Japan's and battled Prime Minister
she go to Aeshiba's denying reports he plans to step down.
These reports from Japanese media came days after Aeshiba's ruling
coalition suffered that historic setback in Sunday's Upper House election.
Yeshiba says there's no truth to the reports. They'd push
Japan's tenure government bond yield to its highest level since
two thousand and eight.
After months of uncertainty, President Trump's latest tariff deals, Nathan
are providing clarity on on a new trade landscape for
the world's biggest manufacturing region in East Asia. In addition
to the Japan deal, a separate agreement with the Philippines
at a nineteen percent rate, the same level as Indonesia
and a percentage point below Vietnam's twenty percent baseline. Meantime,
Treasury Secretary Scott Besson says he'll meet with his Chinese
counterparts in Stockholm next week for their third rounded talks
aimed at extending a tariff truce and widening their discussions.
China's Commerce ministry says Vice Premier Halifung will be in
Sweden for those talks and Karen.
President Trump is not letting up in his criticism of
FED chair Jay Powell. In a meeting with Republican lawmakers,
the President said Powell will only be in office for
a short while his term does expire in May, and
the President continued to hammer the chairman on interest rates
During his earlier Oval Office meeting with the Philippines, President
heard live on Bloomberg Radio.
People aren't able to buy a house because this guy
is a numbskull. He keeps the rich too high and
probably doing it for political reasons.
Now.
President Trump has said he has no plans to fire pal.
In an interview with Fox Business Treasury Secretary Scott Besson
said he sees no reason for the chairman to step
down now.
His term ends in May.
If he wants to see that through, I think he should.
If he wants to leave early, I think he should.
Secretary Besson says the Fed should also do an internal
review of its non monetary policies. He says that could
be Powell's legacy. In other news this morning, Karen the
Justice Department says it wants to interview Jeffrey Epstein's former girlfriend,
Glaine Maxwell. She is currently serving twenty years in prison
for helping the late financier sexually abuse underage girls. The
move comes after a fierce backlash from parts of President
Trump's base over his earlier refusal to release additional records
about Epstein. Attorney General Pam Bondi has asked two federal
judges to unseal grand jury testimony in the Epstein and
Maxwell investigations. The judges have ordered the government to lay
out the special circumstances that would justify releasing those secret transcripts.
Glenn Maxwell's lawyer, meanwhile, confirms they are in discussions with
the DOJ on an interview. In a statement, the lawyer says, quote,
we are grateful to President Trump for his commitment to
uncovering the truth in this case.
Nathan, we have new developments this morning involving the global
hack involving Microsoft software, and Bloomberg's John Tucker joins US
Live with the very latest. John.
Good morning, Yeah, Good morning, Karen.
The US agency that's responsible for maintaining and designing the
nation's nuclear weapons was among those breach by the hack
of Microsoft's Sharepoints software, and our sources tell us no
sensitive or classified information is known to have been compromised
in the attack on the National Nuclear Security Administration, but
former Deputy National Security Advisor and Newberger tells Bloomberg Balance
of Power, this is a big.
Deal because SharePoint is so widely used, we can expect
likely a fair number of victims, and the vulnerability is
a major one, so attackers can not only steal data,
they're stealing keys.
Microsoft has blamed Chinese states sponsored hackers for the attacks.
The hackers have stolen signing credentials including user names, passwords,
hash codes, and tokens. In New York, I'm John Tucker,
Bloomberg Radio.
Thanks John. Turning to Markets Now Stocks begin the day
at record highs on trade optimism and ahead of earnings
from the first of the Magnificent Seven companies. Bloomberg's Charlie
Pellett begins our team coverage with a look at what
to expect today from Google parent Alphabet.
Alphabet's results are expected to bolster sentiment about its position
in artificial intelligence. Anna Rothbund is the CEO of Grenadilla Advisory.
I don't know about you, but when I talk to
my friends, they stop using Google as a search engine.
They're using chat GPT.
According to data compiled by Bloomberg for the second quarter,
Alphabet is expected to report net earnings of two to
eighteen a share on revenue of nearly eighty billion dollars
in New York. Charlie Pellett Bloomberg Radio.
Right, Thanks Charlie. The Alphabet earnings will come after the
closing bill, and that's what we'll also hear from Tesla.
Hell Love. Bloomberg's Tom Busby continues our team coverage with
a preview of the ev maker.
After reporting earlier this month at Q two, deliveries were
down thirteen percent from a year ago. Mini analysts are
worried about Tesla reporting a second straight year of declining
deliveries the mid ongoing sales slumps here in the US
as well as in China and Europe. Investors will be
watching though, for updates on its outlook for the full
year and information about itself driving robotaxi efforts and the
long delayed plans for a more affordable EV model. Bloomberg
consensus calls for revenue of twenty two point five to
four billion on adjusted earnings per share of forty two cents.
Tom buzby Bloomberg Radio.
Okay, Tom, thank you, as we await those banks seven
earnings and other tech companies taking it on the chin
this morning. Shares of Texas Instruments are now down more
than twelve percent. The chip maker came out with an
outlook more guarded than some investors anticipated.
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. In a dangerous heat wave in the nation
moves east, Bloomberg meeting religious Craig Allen.
Extreme heat is the big story once again as a
heat dome builds over the central and eastern portion of
the United States. Right now, we have about eighteen states
with a heat advisory, as well as about a half
a dozen states with an excessive heat warning.
Bloomberg Meeting religious Craig Allen says about eighty million people
are under some kind of heat alert. Attorney General Pam
Bondi removed a US attorney for New Jersey, Desiree Grace,
that had been named by federal judges to replace President
Trump's choice. The move came after judges decline to extend
the tenure of the President's appointee, Alina Habba, whose four
month tenure has been marked by controversy. WDAG Todd Lanch
defended Haba, saying that judges act at lyng activists. Investigators
say a fire that killed ten people at of Massachusetts
Assistant Living facility was caused by smoking or an oxygen
machine's electrical problem. The Massachusetts Fire Marshals said that the
July thirteenth blaze at Gabriel House spread quickly due to
the presence of medical oxygen. Bristol County District Attorney Thomas Quinn.
It was clear after a preliminary examination of the scene
and initial interviews that the fire did not appear to
have been set intentionally.
Da Quinn says the Gabriel House had been home to
about seventy people. We've lost the prints of darkness. Flowers
and photos now surround Ozzie Albourne's star on the Hollywood
Walk of Fame as fans stopped to pay tribute to
the heavy metal singer. Osborne died yesterday. Greg Harris is
the president and CEO of the Rock and Roll Hall
of Fame.
He also achieved pop culture status with the Osbourne's reality show.
We got to know him as a human being and
a bit of his humors side, and what an interesting
character and just a warm individual.
Ozzy Osbourne was seventy six Global news twenty four hours
a day and whenever you want it with Bloomberg News
Now Michael Barr, and this is Bloomberg Carrot.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update. Here's John stash Hour, John, good morning.
Good morning, Karen. That Toronto Blue Jays had not lost
a home game in a month, eleven wins in a row,
five of those coming against the Yankees. It's why the
Jays had gone four games ahead. In the Al East,
the Yanks took the lead a jazz chishom three went
over first inning, but another blown lead Toronto tied it
up with the help of another Anthony Volpi air Is
league leading thirteenth four to four game.
Top of the ninth inning.
High plod ball right field and Deep Lucas back.
On the truck.
See y'all.
A huge home run for Ben Rice has the Yankees
take a five poor lead.
How Ben Rice got a look at Hoffmann last night
and he did not waste any time, knowing he's going
to get a fastball at some point.
He got it on the first pitch and he did
not miss.
It on the S network. Gangs one five to four,
and they'll have Max Freed going tonight. His first outing
since the start ten days ago was cut short due
to a blister.
The Mets at.
City Field, down to nothing, came back beat the Angels
three to two, helped by a Francisco Alvarez two run homer.
He even banished to the miners where he belt at
eleven homers. Earning the trip back Philly stay half game ahead.
They beat the Red Slots.
Four to one.
Stops are one and three since that ten game winning street.
The Nationals beat the Red six to one. Milwaukee's eleven
game winning streak ended with a one nothing loss in Seattle.
Only run of the game, Cal Rawley's thirty ninth home
run at Barkley's. Liberty beat the Fever ninety eight eighty
four at the Nistel without the injured Caitlin Clark.
That's the liberties fourth straight win.
The now sixteen and six NFL training camps are opened.
The Bengals Trey Hendrickson and no show thirty five sacks
over the last two seasons, and yet Cincinnati offering a
new contract that has only one year. Game Garanteed and
Terry mclaura on the Commander's Top White app also a
no show. Tennis in Washington, a first round victory for
forty five year old Venus Williams, her first win in
two years. She's the second oldest ever to win a match.
Her opponent is twenty two. She was born after Venus
had won four Grand Sliam titles. John Stasheller, Bloomberg Sports
Karen 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. With nine days to go
until the tariff deadline, President Trump is touting what he
says may be his biggest deal yet.
I just signed the largest trade deal in history, I
think maybe the largest deal of history with Japan.
President broke the news to a room of Republican lawmakers
at the White House last night, announcing a fifteen percent
tariff freight on Japanese imports into the US, as well
as a five hundred and fifty billion dollar invest and
fund joining us. For the latest on this is Bloomberg's
Jill Desis in Hong Kong. Of course, Jill, they've been
hearing that Japan could face a twenty five percent teriff
right before this deal was announced, obviously much lower. What
more can you tell us?
Good morning, Good morning, Nathan. Yes, I think with this
particular deal, obviously, you know there's going to be some
time to adjust to a fifteen percent tariff rate, given
that's just, you know, higher than anything it was before.
But if you're Japan, this is still much better than
where things seemed like they were trending. I mean, first
of all, we had after the Liberation Day tariffs from
Trump were announced at the beginning of April, we were
thinking somewhere in the twenty four percent range, and then
he actually crept up a bit in recent weeks threatening
a twenty five percent tariff. So this does seem like
on its face, you know, a little bit of relief
in terms of you know, if you're an investor, you're
seeing a little bit of that uncertainty lifted. You know,
we certainly saw that impact with stocks in Japan today,
particularly those automakers seeing some spikes. I think though, you know,
with something like this, obviously you have to see how
exactly everything develops. Some particularly keen on learning more about
this five hundred and fifty billion dollar fun to make
investments in the United States that we're still not entirely
sure how exactly this is going to be funded. Japan
has agreed to provide these funds to invest in projects
in America. I think the timeline still has to be
you know, spelled out a little bit more, but it's
surely has to come again as a relief to investors
watching the space because a lot of those threats on
automakers in particular. I mean, when we're talking about twenty
five percent, that's incredibly high. And so again it does
alleviate that a little bit, but you know, it still
has a lot of things when it comes to Trump
and flex. So we'll see where we go from here.
These talks had been so sticky before the results of
last weekend's election in Japan. Was the loss for Shigaru
Ashiba's ruling party, it was sort of a kick in
the pants for Japan to get this done.
Yeah, I mean, look, I think when it comes to
these Japan elections, so essentially, you know, Prime Minister sugar
Isshibo was already a bit on the back foot after
he came into power last year. You know, his party
did suffer defeats in the lower house elections. Then we
saw this upper house election not go his way over
the weekend. I mean, you know, really really critical blow
there and has raised a lot of questions about whether
or not he can actually maintain power in japanic that's
still a really open question. One thing he did say
was that he would hold on until you know, at
least see he a critical part of this was getting
this trade deal over the line. Now that that's done,
obviously raising a lot of speculation about how long he
continues to stay on.
Yeah, certainly.
I mean there are reports in Japan that he already
made a decision to resign, maybe this month or next.
I guess he's pushing back on that now.
Yes, that's right, so essentially so, local media reports came
out saying that he had actually met with some of
his predecessors and discussed the timeline potentially stepping down. Those
local media reports are saying by the end of August.
Perhaps he just came out this afternoon and denied those
media reports. But I do have to say when you
put a loss like he suffered in parliament, you know,
his party suffered in Parliament over the weekend in context.
I mean, first of all, you know, fifty five years
since you know this, this ruling party has lost control
of both of those chambers. When we have seen critical
losses for prime ministers of the ruling party in the past,
they really only hold on for maybe a couple of
months at most. So I do think that, you know,
while he is pushing back against this, the fact that
you have this really critical trade deal apparently you know
done and dusted, although again I think we have to
leave that open a little bit, but apparently done and dusted.
I mean, I think that it doesn't mean that pressure
on him to resign, that clearly goes away.
This is Bloomberry day Break, your morning podcast on the
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