Global Stocks Recoup Tariff Losses; President Trump Visits Saudi Arabia

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Good morning, I'm Nathan Hager and I'm John Tucker. Here
are these stories we're following today.
Stocks around the world have recovered their losses from last
month's Rose Garden tariff announcement from President Trump. That's after
the US and China agreed to roll back triple digit
tariffs against each other for ninety days. In White House
remarks heard on Bloomberg Radio, the President called it a
total reset of the US China relationship.
The relationship is very good. We're not looking to hurt China.
China was being hurt very badly, and they were closing
up factories. They were having a lot of unrest.
But President Trump did not mention that the deal meant
nearly all of China's demands, including suspension of the so
called reciprocal terariff rate of thirty four percent and a
point person for further talks still. Caroline Freud, a non
resident Senior Fellow at the Peterson Institute, says both sides
had good reas to de escalate.
It was really unsustainable for both countries for different reasons.
It was unsustainable for the US because there's a lot
of things we need from China, and it was unsustainable
for China because they need to manufacture things and sell them,
and the US is a huge market, so both sides
really had a lot of incentive to make a deal.
It's Caroline Freud of the Peterson Institute, and China may
have made at least one concession to the US. Sources
tel Bloomberg News, China has lifted a month long ban
on airlines taking deliveries of Boeing planes, and of.
Course investors were cheering the US China trade agreement, the
SMP five hundred surging three and a quarter percent, well
that n asdak rallied four and a third percent, as
some Wall Street titans also applauding the easing of tensions.
We caught up with Citadel founder Ken Griffin.
To see the US Secretary Treasury come to a Meetia
the minds with the Chinese leadership. Was an important moment
between our two nations. And I'd like to take this
not as a as a moment in time or reflect
upon the fragility of what's been accomplished, but rather to
focus on the fact that we have opened the doors
to a negotiation.
And I do believe that the.
Actions of both parties makes it clear that we want
to find common ground.
Citadel founder Ken Griffin making the comments in an interview
with Bloomberg Shanali Bassik for an episode of the upcoming
series Bullish for Bloomberg Originals of the Four Seasons in Miami.
Well John President Trump is in Saudi Arabia. He has
arrived for the start of a four day tour of
the Middle East, greeted personally by Crown Prince Mohammed Ben
Salmon and the tarmac. The President's Treasury Secretary Scott Bessant
is also in the Kingdom, attending a Saudi US investment
for him in Rio, and Besson talked about the chances
of a trade agreement with the European Union.
May have a collective action problem that the Italians want
something than the French, but I'm sure at the end
of the day we will reach a satisfactory conclusion.
And Treasury Secretary Scott Besson added the US has had
very productive discussions with Japan, anti priced conversations with Indonesia
as well as a quote very good proposal from Taiwan.
And the easing of global trade tensions has on Wall
Street firm boosting its price target for US stocks. Let's
get that story from Bloomberg's Gena Cervetti.
Goldman Sachs Group says the buy America trade may be back.
The firm now sees the SMP five hundred index reaching
sixty five hundred in the next twelve months. That's three
hundred points higher than its previous estimate and a gain
of about eleven percent from yesterday's close. Goldman had cut
its SMP five hundred forecasts twice in March, citing higher
recession risk and tariff related uncertainty. The firm says, while
such concerns have eased with the latest truce between the
US and China, the broader earnings outlook still remains uneven.
In New York, Gena Cervetti bloom Radio.
All right, Gina, thank you.
As investors remain focused on the latest trade developments, they'll
also have a key economic report to digest later this morning,
when we get the consumer price index from the month
of April.
Let's get a preview now from Bloomberg's Michael McKee.
This is the first inflation report that may offer evidence
that Trump's import taxes are raising prices. The consensus is
for a fairly strong increase in headline and core prices,
even as gasoline fell in April. Autos and some consumer
goods may move higher, although the biggest increases won't come
until May or June. Economists will still be watching the
traditional inflation sources as well, particularly housing, to see if
non Trump inflation is making progress towards the FEDS two
percent target. Michael McKee, Bloomberg Radio, All.
Right, thanks Mike. Staying in Washington, Republicans on the House
Tax Committee, they've released details of Donald Trump's multi trillion
dollar tax cut bill. That story from Bloomberg Sammy Morris.
The legislation aims to cut taxes by more than four
trillion dollars and reduce spending by at least one and
a half trillion over a decade. It also raises the
state and local tax cap to thirty thousand dollars for individuals.
Former North Carolina Republican Congressman Pat McHenry wonders if that
will be enough for some lawmakers.
The question of whether or not thirty thousand is going
to be sufficient for them, We're going to see.
We're going to see in a.
Very public way, these are the most public Republicans in
the House representats.
The legislation also proposes raising the debt limit by four
trillion dollars. It does not include President Trump's proposal for
a millionaire tax bracket. In Washington, Amy Morris Bloomberg Radio, all.
Right, Amy, thank you.
In the US appears to be on track for a
very bad tourism year. According to new data from the
World Travel and Tourism Council, the US is set to
lose twelve and a half billion dollars in travel revenue
in twenty twenty five. Visitor spending is estimated to fall
under one hundred and sixty nine billion dollars by year's end.
These numbers represented decline of around seven percent, a year
over year decline of twenty two percent since tourism peaked
in the US in twenty nineteen. The decline is attributed
to Lady lingering, COVID era requirements, a strong dollar, and
a shift in people's views due to the current administration's
America First rhetoric and policy.
All right, thanks, Nathan, it's time now for it. I
look at some of the other stories making news in
New York and around the world. After that, we're joined
by Bloombergs Michael Barr Michael, good morning.
Good morning John. It is the start of day two
of testimony in the sex trafficking and racketeering trial of
music mogul Sean Diddy Combs. Yesterday, prosecutors played the CNN
video for the jury. The surveillance video shows Combs chasing
then girlfriend Cassie Ventur down a hotel hallway, knocking her
to the floor, and kicking her. During opening statements, prosecutors
say it's what happened after Ventur tried to escape one
of the sex performances. The defense claiming the video shows
a fight over a cell phone. His own lawyers acknowledged
Combs was violent at times, arguing that does not make
Combs a sex trafficker or part of a rocketeering conspiracy.
Attorney Arriva Martin talked about the challenge for the government.
We know a lot of people don't understand why victims
of sex trafficking don't come forward sooner and faster.
Why don't they go to the police. Why don't they
report this to friends and to others. So that's going
to be the question these jurors have.
To grapple with today.
Cassie Ventur is expected to take the witness stand. Hamas
has freed the last living American citizen held hostage in Gaza, Eden, Alexander.
Alexander met up with his younger brother in a joyous celebration.
Is much.
Alexander was captured during a Hamas attack in October twenty
twenty three. Former President Joe Biden is being evaluated after
a small nodule was discovered on his prostate. A spokesman
told The New York Times mister Biden, who was eighty two,
spent last Friday at a hostel Bittle in Philadelphia, says
the nodule required further evaluation. Two New York Republican lawmakers,
Mike Lawler and Nick Lolota, vowed to block their party's
tax legislation unless the proposed thirty thousand limit on the
federal income tax deduction for state and local taxes is increased. Lawler,
speaking to Bloomberg, called the proposed salt limit woefully inadequate.
When the Tax Cousin Jobs Act expires at the end
of this year, salt comes back unlimited, and so in
order for there to be a tax bill that would
actually put a cap in place, it has to adequately
address the concerns of my constituents.
Other Republicans, including Andrew Garabino, Elise Stefanik, and Young Kim
have also rejected the salt cap Global News twenty four
hours a day and whenever you want it with the
Bloomberg News Now, Michael Barr, this is Bloomberg.
John, all right, Michael, thank you. Yeah, that brings us
to five. He had on Wall Street Time now for
the Bloomberg Sports Up Day. Empathetic and Chris John stash here, John, good.
Morning, Good morning John.
The Knicks, in Game four with the Celtics at the Garden,
found themselves trailing for the fourth straight time in the series.
Boston had a fourteen point lead in the third quarter.
Jalen Brunson led the Knicks back.
Brunson, still looking falling Away puts it up.
That skirt tail and Brunson does it again. It's a
two point.
Game, time out.
Boston drives into the paint, pulls back, looks.
Up at the shot clock. He's gotta get it off.
Falling Away, puts it up, puts it in. Brunson. Parage
here of the third quarter of.
The game is time on ESPN The Knicks won that
third quarter thirty seven to twenty three Bruns and had
more than half those Nick points. They went on to
win one twenty one point thirteen, now have a three
games to one lead runs and finished with thirty nine points. Connel,
Anthony Towns and Mchal Bridges both at in twenty three.
Jason Tatum was tremendous in leading the Celtics. He scored
forty two points. He made seven three pointers, and then
Tatum's night, and very possibly his season, came to an
end with three minutes left a non contact lower leg injury.
He was seen later in a wheelchair with his head
in his hands. Heata will have an MRI today, but
the Celtics may very well have to try and make
the series come back without their star player. Golden State
has been without its best player and without Steph Curry.
The Warriors lost for a third straight time Minnesota one
one seventeen to one ten. The te Wolves also up
three to one. The Dallas Mavericks, who took considerable heat
for trading Luca Donzon's, got some good news winning the
draft lottery. They had a less than two percent chance.
The MAVs will now be.
Expected to draft Dukes Cooper Flag Stanley Cup playff home
wins for Carolina and Edmonton, both up three to one.
Yankees in Seattle had four home runs, two by Trent Grisham.
They won eleven to five, but the Yanks suffered where
looks like a serious injury to Oswaldo Cabrera hurt his
ankles sliding at home. He was taking off the field
in an ambulance. Mets scored by the night through the
Pirates four to three. Nationals lost in Atlanta four to three,
and the Red Socks lost in Detroit fourteen to two.
John Staneshawer Bloomberg Sports, John and.
Naple 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 US says it is now in a good position
to negotiate with China after last weekend's trade talks in Geneva,
but the rollback of one hundred and forty five percent
tariffs on China down to thirty may validate Chinese President
Xi Jinpingk's decision to hold firm in the standoff, and
now President she says, China stands ready to defend multilateral trade.
May there are.
No winners in tariff wars or trade wars.
Bullying or hegeminism only leads to self isolation.
That was Chinese President Chijin Pink speaking through an interpreter
in an economic forum with Latin American states in Beijing
joining US now. Bloomberg News Senior editor Bill Ferries, Bill,
good morning. I know we're only a day away from
the announcement of the outcome of the Geneva talks, but
is it too soon to say who's got an upper
hand now, the US or China?
Good morning, Good morning, Nathan.
Yeah, it does seem that China has really gotten a
lot of its key demands met so far. I mean,
when these very high US tariffs went in place one
hundred and forty five percent on Chinese imports, you heard
from Trump administration officials saying that China couldn't afford to
hold out, that they needed the US market more than
the US needed the Chinese market, and that eventually, you
know that China wanted to have a meeting and would
call a meeting. In the end, it looked like both
sides were feeling some economic pain. But the end result
from this weekend really does seem to be we're back
to where we were in late March early April with
the US thirty percent tariffs and lower Chinese ten percent tariffs.
It's not clear that there's any agreement on market access.
It's not clear that there's very really, very much achieved
beyond a very ultuous past six or seven weeks. And
what Scott Besstt was saying today in Saudi Arabia was
that they have opened this channel of formal talks between
the US and China. That's not necessarily something you needed
the tariffs to do, but it is the result of
what's been happening over the last several weeks.
And to your point, Bill, the Treasury Secretary says that
the first Trump trade deal with China gives them a
very good framework to work with to try to get
a newer deal rebalancing of trade. But is that tougher
now to get a rebalancing since China's held out the
way it has.
Yeah, I think China is going to see you know,
they're in this ninety day period where they're supposed to
make more progress on limiting the export of products that
go into making fentanyl. They're looking to see if there's
agreements they can make in certain sectors. But I think,
you know, China never fully bought into that that original
trade deal that required them to buy two hundred billion
dollars in US goods. I think it's going to be
hard to increase that kind of an agreement when you
haven't met the terms of the initial agreement. So it's
not clear what the next ninety days will bring. There
will be more talks, there might be progress on fentanyl.
Part of the thirty percent tariff on Chinese goods is
this twenty percent that's supposed to be based on progress
on fentanyl, So there is a chance that could come down.
One thing Scott Bessett made clear is that he sees
ten percent as a floor going forward, and that's still
significantly higher than the tariff's Chinese goods faced when the
administration took office in January.
And now, as you mentioned, the focus does turn to
the Middle East. It's not just Treasury Secretary Besant who's there,
but President Trump has arrived. He's getting a tour with
the Saudi Crown. Prints what kind of outcomes can we
expect from the President's.
Visit to the Middle East. Got about a minute left.
I would expect to get some details about and more
broadly Middle Eastern investments in the US. At one point,
you know, Donald Trump was asking for more than a
trillion dollars in investments to come in from Saudi Arabia
in the Middle East. I don't know if we'll get
all of that, but that's going to certainly be drumming up.
Business is going to be a big part of this.
There is going to be some questions about this ceasefire
with the Hooties and whether the Red Sea will really
reopen to shipping. It hasn't happened yet, and I don't
think there's a lot of expectations that that's on the horizon,
but it's certainly going to be. I expect we'll see
a lot of a lot of big announcements from the
President on trade and investment.
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