Trump, Musk Trade Threats; US-China Tensions Cool

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 the latest developments in the spat
between two of the most powerful people in the world.
There are signs this morning the rift between President Donald
Trump and billionaire Elon Musk maybe easing. Bloomberg's John Tucker
begins our team coverage this morning.
John, Good morning, and good morning.
Nathan. Politico is reporting White House aides have scheduled a
call with Musk today to try and cool things off.
President Trump with the reporters yesterday, have this to say us.
The Musk birl bands headed for the rocks.
I'm very disappointed in Elon. I've helped Elon a lot.
Elon and I had a great relationship. I don't know
if we will anymore. I was surprised because you were here.
Everybody in this room practically was here, as we had
a wonderful SENDO.
He said wonderful things about me.
You couldn't have nicer, said the pest snake. He's warned
the hat Trump was right about everything.
Or The relationship started to rupture when Musk called Trump's
signature tax and spending bill a disgusting abomination, and things
really got ugly yesterday. Musk called Trump an ingrate and
suggested the president would have never won the election without
his help. A Trump, in turn, proposed cutting off Musk's
lucrative government contracts. Go ahead, make my day. Musk post
it on Axe in response to Trump's threat. Later, he
responded yes to a Twitter users suggested that the president
be impeached. He then suggested the president was withholding the
release of files related to pedophile Jeffrey Epstein because they
incriminate the president. You New Yorkcome, John Tucker, Bloomberg Radio, All.
Right, John, thank you well. Elon Musk also appears to
be walking back a threat that could have put work
on the International Space Station at risk, and bloomberge Gina
Servetti continues our team coverage.
Elon Musk had threatened to decommission SpaceX's in spacecraft. That's
after President Trump posted that the government could save billions
of dollars by canceling Musk's federal contracts. Dragon is SpaceX's
primary vehicle for sending people and cargo into orbit, and
it's helping NEWA maintain a steady presence at the space
station until it's retired in twenty thirty. It's unclear how
serious Musk was about decommissioning Dragon. It's set to launch
another four private astronauts to the ISS with Axiom Space
next Tuesday. Gina Cervetti, Bloomberg Radio.
Hi, Gina, thank you.
The feud wiped off thirty four billion dollars from Elon
Musk's personal net worth in one day. Tesla shares a
loan fell fourteen percent. Ross Gerber is president in CEO
of Gerber Kawasaki and was one of Tesla's earliest investors.
This is a disaster for Mosque.
I don't know if I can spin it in a
positive way, because it's just so beyond any intelligent businessman's
behavior would be. I can't imagine after putting Trump in there,
that he would then turn Trump into an enemy of
all things because he's still the president of the United States.
That was Tesla investor Ross Gerbert.
The selloff marked the second largest loss ever in an
individual's net worth, according to Bloomberg's Billionaires Index. Tesla shares
this morning are recovering. They're up more than five percent.
In pre market trading.
Nathan Mole, the public spat with Elon Musk may be
cooling off. The Trump administration is not letting up in
his fight with Harvard University, but it's taken a legal
setback on that front. A federal judge in Boston has
given the university a temporary reprieve from the president's ban
on international students entering the US to study there. Judge
Ellison Burrows says Harvard would face immediate and irreparable injury
if the band took effect, and she set a hearing
for June sixteenth.
Well, Karen, Tensions appear to be easing between the US
and China. President Trump and Chinese President she Jinping have
agreed to resume trade talks after months of stalled negotiations.
The leader spoke for ninety minutes yesterday. We get more
from Bloomberg News senior editor Bill Ferries.
Well a lot of I guess positive commentary, especially from
the US president, saying that they seem to have reached
some kind of a deal or agreement on the issue
of rare earth mineral products that seemed to be the
issue that was really worrying the US and US companies
we know Ford closed a factory for a week last
month partly based on its access to those supplies of
rare earths. If they can get through that with an understanding,
it's probably signals that the negotiations between the two sides
over those tariffs are back on track.
Bloomberg's Bill Ferries says.
President Trump told reporters he's accepted an invitation to visit
China and extended his own invitation to President she Nathan.
There's new developments this morning on two trade fronts. First,
the US and Japan have begun the latest round of
trade and go she so, with media reports suggesting Tokyo's
delegation is trying to win a reprie from the tariffs
by pledging to make more cars in the US and
enhancing cooperation on rare earths. Commerce Secretary Howard Latnik met
with Japan's top trade negotiator in Washington yesterday. Expectations are
growing that Japanese Prime Minister Shagiro is Shiban. President Trump,
who held two phone call or two phone meetings recently,
may announce a deal when they meet on the sidelines
of the summit.
And Karen Bloomberg News has learned President Trump and Canadian
Prime Minister Mark Karney have been in direct contact trying
to reach a trade deal, but still have work to
do to find agreement. The President is planning to attend
the Group of Seven leader summit in Canada that begins
June fifteenth. Some Canadian officials hope to reach a deal
to lower or eliminate tariffs before that.
Nathan President Trump may be backing away from his push
for a quick ceasefire between Russia and Ukraine, and comments
heard live on Bloomberg Radio, the President said it might
be better to let both sides fight it out a
little longer.
Sometimes two young children fighting like crazy, they hate each other,
and they're fighting in a park, and you try and
pull them apart. They don't want to be pulled. Sometimes
you're better off letting them fight for a while.
At the same time, President Trump is suggesting he might
put sanctions on both countries if he thinks the fighting
is going on too long. Overnight, Russia launched a wave
of Dronan missile strikes on civilian targets in Ukraine after
President Vladimir Putin promised to retaliate for last weekend'st drone
attack on Russian air basis. The attacks killed at least
three people in Kiev and wounded more than a dozen others.
Let's turn back to markets now.
Karen Futures are higher ahead of this morning's key economic
report at eight thirty am. Wall Street Time, investors get
the May reading on jobs, and economists are forecasting a
gain of one twenty six thousand non farm payrolls. We
get a preview from Bloomberg's Michael McKee.
He kind of has seen May jobs coming in at
the lowest level since last October, a slowdown likely caused
by uncertainty over President trump fiscal plans. Other labor market
indicators are suggesting weakness. The ADP found just thirty seven
thousand jobs created last month. The ISM's manufacturing and services
employment indexes showed contraction. For markets to the FED, however,
the key won't be the number of new jobs, but
the unemployment rate. A shrinking labor supply may keep the
jobless rate unchanged for a while. If that's the case today,
we should see little change in investors belief the FED
is on hold for now. Michael McKee, Bloomberg Radio.
All right, Mike, thanks and stay with Bloomberg surveillance at
eight thirty am Wall Street time. When those numbers hit
the tape, we will break them down live with analysis
from former Fed economists Claudia Sam Nathan.
Let's check some stocks that are on the move this morning.
Shares of Lulu Lemon. They're plunging more than twenty one percent.
The athleticware maker is reducing its earnings per share outlook
by about two and a half percent for the full year.
It also sees sales below analyst estimates. Lululemon is trying
to manage supply chains affected by President Trump's trade wars,
and its guidance assumes thirty percent tariffs on China and
ten percent on other countries, which could cause quote a
significant reduction and profitability.
We're els watching shares of Broadcom this morning, Karen. They're
down more than four percent. The chip supplier to companies
like Alphabet and Apple, gave a lackluster revenue forecast for
the current quarter. Analyst suggests the artificial intelligence spending frenzy
is not as strong as some investors anticipated. Like in Nvidia,
Broadcom is seen as a key beneficiary of a surge
in AI spending.
And Nathan changes are coming at HSBC, Europe's biggest banks,
as chairman. Mark Tucker is stepping down to return to
insurer AIA as non executive chairman. Tucker has been with
HSBC for eight years, and board member Brendan Nelson will
step in as interim chair Time now for a look
at some of the other stories making news in New
York and around the world. For that, we're joined by
Bloomberg's Michael Barr Michael, good.
Morning, Good Morning Karen. A man accused of yelling free
Palestine and throwing molotov cocktails at demonstrators calling for the
release of Israeli hostages in Gaza has been charged with
one hundred and eighteen counts, including attempted murder. Mohammed Suliman
has been jailed since his arrest following Sunday's attack in Colorado.
He was advised of the charges during a court hearing
in Boulder yesterday. District Attorney Michael Doherty.
I am absolutely committed to making sure the defend is
fully prosecuted, so obviously making sure he remains in the
country is a top priority so that he could be
fully prosecuted and held fully responsible.
DA Michael Doherty says The counts also include assault in
the first and third degrees, use of explosive or incendiary devices,
and animal cruelty. The judge in the Sean Diddycombe sex
trafficking and racketeering trial issued a warning to the music
mogul Combs is not supposed to react with facial expressions
to the testimony, but the judge said he caught come
homes nodding vigorously and looking at the jury. The judge
calling it unacceptable and says if it happens again, he
would consider excluding Combs from the courtroom for the remainder
of the trial. A Massachusetts community is celebrating after a
mill for teen was released from ICE custody. Barcelo Gomes
da Silva was taken into custody on his way to
volleyball practice nearly a week ago, alongside supporter's family. Attorney
Robin Iie spoke outside the courthouse in Chelmsford.
It's unlikely to be arrested by Ice again when you've
been released on bond already, so I think he'll have
that certain level of security, but it's hard to know,
and times are changing, and if it's not him, you know,
there's so many people in his situation.
Attorney Robin Nie says d Silva was picked up by
ice last Saturday while driving his father's car to volleyball practice.
Homeland Security says agents were targeting his dad, but when
they found that the team is in the US illegally,
they made the arrest. President Trump told Senate Republicans he
is opened to a state and local tax deduction cap
lower than the forty thousand dollars in the House passed
version of this tax bill. House Speaker Mike Johnson says
he's fighting to keep the forty grand camp As is
Global news twenty four hours a day and whenever you
want it with the Bloomberg News. Now, I'm Michael Barn.
This is Bloomberg Karen.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. Here's
John Stashauer, John de morning.
Good morning, Karen.
The Knicks and they're fans, well, they know all about
Indiana pacer comebacks. Late game herobics by Tyrese Halliburton in
a series opener, happened at the Garden in the East Finals,
and it happened two weeks later in Oklahoma City to
begin the NBA Finals. The thunder were cruising along, up
by fifteen with less than tenants to play back game
Indiana Pacers at the end trailed by a point.
Kildas Alexander Spins pulls up.
Humbert Alplamar gone go rebound.
Nesmith Heati's little chance to win it. Final second still
foulest to do. Caliburton looker Cayliverton driving pulls up.
Jump shot up.
It's gone with three tons of the second verating time out.
Okay see Tyres Halliburton does it again.
On ABC Indiana one one eleven, one ten. A Halliburton
shot gave them their first lead of the night. He
not only hit that shot that tied the game with
the Knicks, he hit game winners against Milwaukee in the
first round and Cleveland in the second game two Sunday
in OKC Game two of the Stanley Cup Final.
Tonight, Edmonton ough won nothing hosting Florida.
The night after the Yankees lost to Cleveland four nothing,
they beat the Guardians four nothing a Cody Bellinger two
run home at fourth inning, a Jazz Chisholm two run
single the seventh, and another brilliant outing by Mac Fried
in six innings, he allowed only one hit. First Yankee
Red Sox game of the season tonight at the Stadium
in La. The Mets led the Dodgers four nothing, five three.
In the eighth inning of Brett Baty Era was costly.
Dodgers won six y five, game winning hit by the
ex Met Michael Konfordo. Jerry Ryan Stor bought the White
Sox in nineteen eighty one for twenty million dollars.
He's now eighty nine.
He's got a deal in place to eventually sell to
real estate tycoons justin Eshbia. Aaron Rodgers waited four months
but finally has agreed to play quarterback for the Steelers.
He'll be in Pittsburgh today to sign his one year contract.
He'll be at their mini camp next week. They'll play
them men's semifinals today at the French Open. John Stanshehwad Bloomberg.
Sports 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 dust maybe starting to settle from the extraordinary public
breakup that broke out just less than twenty four hours
ago between President Donald Trump and billionaire Elon Musk, but
investors may still be worried about the damage done. Ross
Gerber is president of Kerbert Kawasaki and one of Tesla's
earliest investors.
Institutions and pension funds had written the Board of directors
about Elon Musk and reigning in this kind of behavior.
And I can't assume that this isn't going to lead to.
Massive shareholder lawsuits against the board of directors and Tasla.
Ross Gerber with Gerbert Kawasaki there now we're joined by
Bloomberg News senior editor Derek Wallbank and Derek, the questions
are still rising here when you hear things like impeachment
and Jeffrey Epstein and cutting off government contracts, where does
this relationship stand now?
Good morning, Good morning, Nathan. Look, it was an absolutely
explosive period in a relationship that had come to define
the second Trump administration, at least its early days. Right,
Elon Musk was somebody who donated hundreds of millions of
dollars of his own money to electing Donald Trump as
well as Republicans up and down the ballot, they were successful.
Republicans have unified control of Washington. Musk becomes then the
face of Donald Trump's effort to cut government spending. The
two of them cite their way through the federal bureaucracy
and et cetera, et cetera. And now we're sitting here
with Musk talking about Jeffrey Epstein and Donald Trump and
all manner of other things. It got very personal, very quickly,
i would say, yesterday. And the cost to Musk so
far has been staggering. He has he saw Tesla off
fourteen percent. His own wealth is closely tied to that,
more than thirty billion of his own money on paper gone.
It is quite a high cost thing. At the same point, look,
Donald Trump wants to pass his one big, beautiful bill
that is the centerpiece of his own domestic agenda, and
Musk has become the chief antags to.
All of that.
It's really fascinating to think about, you know, the brand
damage that a lot of analysts think was done to
Tesla during Elon Musk's work with the government over the
one hundred and thirty days he was the public face
of the DOGE effort. What kind of brand damage can
we be looking at now that it seems as though
Elon Musk can't seem to pull himself away from the
political fray just.
Jet Well, I'll tell you, Nathan, you know, you quite
rightly mentioned that Tesla has seen and Musk has seen
a fair amount of brand damage among Democrats in the
United States, as well as the sort of political left
of center abroad you see in places like California, places
like Europe, electric vehicle sales rising and Tesla sales falling. Right,
So that's a critical context point to start with. And
now you come here to a pretty big break with Trump.
Musk had sort of run from one to the other,
even as the other one and buying Tesla's as fast
as the former does. This leave Musk sort of a
person without a home. I think, you know, this is
a difficult thing to parse because even as you start
sitting there totting up the damage, trying to figure out
where everything sort of stands there, we get some senses
that Musk is open to a cooling off. In fact,
it was a remarkable sort of series of events. An
account on Musk's x social media platform with fewer than
two hundred followers at the time said quote, this is
a shame, this back and forth. You're both better than this.
Cool off and take a step back for a couple
of days. Musk responds, good advice, and then he says
he's not going to cancel the Dragon Space program that
NASA uses to ferry astronauts up and down to the
International Space Station. I mean it's that level of where
are we where are we not with that level of impact.
Yeah, and you've got to think that it's not just
TESLA investors who want to see some kind of cooling
off here. Republicans on Capitol Hill as well, right, I mean,
they're trying to figure out which way to go on
the one big beautiful bill, And I would got I
have to think that Republicans are at least hoping to
count on some support from Elon Musk for their midterm
election efforts.
Yeah, Republicans are facing a midterm I think where most
of the focus is on control of the US House.
They would very much like to have support from Donald
Trump's biggest billionaire backer, you know, at their back in
that effort. You know, it's a very diverse kind of election.
You don't have Trump on the ballot. You really do want,
you know, to be able to walk into that campaign
being able to defend all the seats you need to
defend as well as maybe go on offense as well,
so you don't want to alienate Musk. At the same point,
Musk is set there on record saying that the cost
of this bill, I think the CBO's estimate was something
like two point four trillion dollars added to the deficit
over the next ten years if it gets faithfully implemented.
That is way more nathan than all of the money
that DOJE has claimed that it has saved so far,
even in its most optimistic telling, and like by orders
of magnitude more right, Musk said in another exposit, you know,
all of that came at a personal cost and risk
to him and his team. So the idea that all
of that would be wiped out. You're hearing Musk talk
about this, and not just like policy terms, but in
deeply personal terms as well.
This is Bloomberry Daybreak, your morning podcast on the stories
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