Trump Readies Tariff Cuts in Affordability Push; Fed Rate Cut Doubts Grow

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 on the global trade war. President Trump is
planning substantial tariff cuts in an effort to fight high
food prices. We get the details from Bloomberg's Monica Riggs.
President Trump's tariff cuts would address high food prices and
unveil new framework agreements with Argentina, Guatemala, El Salvador, and
Ecuador to help reduce tariffs on common grocery items like beef, bananas,
and coffee beans. The Trump administration claims lower trade barriers
in Latin American countries will help boost US businesses and
expects retailers and wholesalers to pass any benefits, including lower prices,
onto American consumers. The push follows big Democratic wins last
week and a number of key state and local races
where candidates focused on affordability. Monica Ricks Bloomberg Radio.
Monica thank you on Capitol Hill that Jeffrey Epstein files
are about to be front and center of the Houses,
heading for a vote next week on a bill that
would require the Justice Department to release its documents on
the late sex offender. Republican leaders have resisted the bill
since it was first introduced in July. Newly sworn in
congressoman at Alita Grihavo was the deciding signature on a
petition to bring it to the House floor.
I hope that it passes the House without any issue
and that the pressure then goes to senators, because regardless
of who is implicated, no one should want the label
of protecting pedophiles.
Democratic congressoman at Alita Grihalvo as a guest on Bloomberg's
Balance of Power. Catch the full conversation on the Bloomberg
podcast page on YouTube. This vote comes after Democrats released
emails from Epstein that suggested President Trump quote knew about
the girls. The White House says Democrats cherry picked the
documents to smear the President.
Well, Karen, Now that the government's shutdown is over, the
nation's airlines hope to get their schedules back on track
by Thanksgiving. The FAA has frozen flight cutbacks at forty
major airports at six percent. It's not saying when that
order will be lifted. Homeland Security Secretary Christi Nome is
saying that transportation security workers who worked through the shutdown
without pay are getting a ten thousand dollars bonus.
What that means is that we are going to not
only continue their paychecks like they should have received all along,
but also they're going to get a bonus check for
stepping up, taking on extra shifts, for showing up each
and every day, for serving the American people.
Homeland Security Secretary Christi Nome made the announcement at George
Bush inter Continental Airport in Houston. The airlines say they
should be back to full capacity within three to four
days once the order to limit flights is lifted.
Well, Nathan, the cancelation of flights is not only having
a big effect on passengers, it may also have a
major impact on the economy. Anawong is chief US economist
for Bloomberg Economics.
If Sean Duffy, the Transportation Secretary, and FAA indeed push
through this over ten percent cancelation of flights and Thanksgiving,
we could have an additional permanent GDP loss of point
two two point three percentage point for the quarter.
And Bloomersana Wong says Americans are estimated to spend around
sixty billion dollars on travel this Thanksgiving Well.
Karen, Doubts are growing on Wall Street this morning on
whether we'll see a December rate cut. Minneapolis Fed President
Neil Cashcari tells Bloomberg he did not support the Central
Bank's last cut, and he's still undecided on the best
course of action for next month. That's a point echoed
by San Francisco Fed President Mary Daily.
To my mind, it's premature to say definitely no cut
or definitely cut. What's more important is to say the
direction of change in policy is looking like it be
towards neutral.
San Francisco Fed Chief Mary Daily and the rest of
the central banks next right decision comes December tenth. Right now,
traders are pricing that about a fifty to fifty chance.
Of a cut.
Nathan concerns the Fed will stan pat next month are
taking their toll on stocks. Futures are lower once again
following yesterday's tech driven selloff. The NASDAK dropped two point
three percent. Still, Mike Wilson, Sheef, us secrety strategist at
Morgan stan Lacy's good signs in the stock market.
We are now seeing double digit earnings growth on the
ear of year basis for the median stock and that's
the first time we've seen that kind of growth in
four years. So I think there are early signs that
we're seeing a broadening of the earning story and that's
what ultimately will lead to better broader performance in the
stock market next year.
Morgan Stanley's Mike Wilson's bullcase for stocks next year. She's
the S and P five hundred hitting seventy two hundred,
that's more than six percent above current levels.
And Karen the head of City Group, is weighing in
on the markets and the economy. We spoke this morning
with CEO Jane Fraser on the sidelines of the City
China conference in Shanghai.
I don't think we're out of the woods yet and
as a sensor, that may be another issue to drop.
It could be entire or in the labor market, could
be in the asset prices that are quite high in
the States. But all of that said, we're quite optimistic
about twenty six.
City Group CEO Jane Fraser not it's one of the
biggest challenges for the FED. We'll be dealing with the
fallout from the government shutdown. You can get our full
conversation with City Group CEO Jane Fraser on the Bloomberg
Podcast channel on YouTube.
In company news this morning, Nathan Verizon Communications is discussing
plans to announce job cuts that could downsize the company
by as much as twenty percent. This is a major
step and a transformation led by new CEO Dan Schulman.
We're told that the plan cuts could impact fifteen tho
to twenty thousand workers.
This morning, Karen, there's labor piece at Boeing factory, workers
in the Saint Louis area voted to end the longest
strike at the planemaker since nineteen forty eight. The accepted
terms will increase average wages by a total of twenty
four percent of workers a six thousand dollars signing bonus.
Average base pay will go from seventy five to one
hundred and nine thousand dollars.
And Nathan Jeff Bezos's Blue Origin successfully launched its second
flight of the New Glen rocket from Cape Canaveral, Florida,
with no humans on board. It carried two Rocket Lab
built spacecraft and a trajectory toward Mars for its first
NASA mission. Effective and the rockets boosters separated from its
upper stage, descended back to Earth and landed on a
barge in the Atlantic Ocean after firing engines to slow
itself down. The successful mission puts Blue Origin on track
to challenge SpaceX's grip on the launch industry. 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 Bloomberg's Michael Barr. Michael, good Morning, Good.
Morning, Karen. Lawyers for former fbhind director James Comy and
New York Attorney General Letitia James teamed up in federal
court on Thursday to ask a judge to throw out
the criminal indictments against their clients. They say the appointment
of Lindsay Helligan as US Attorney for the Eastern District
of Virginia was illegally installed. Helligan, a former personal attorney
to President Trump, was named to the post after her predecessor,
Eric Siebert, stepped down after resisting pressure to bring charges
against Komi and James citing lack of evidence. The judges
promised ruling before Thanksgiving. Prosecutors allege a mobster made a
family business out of targeting gen Z gamblers. New Jersey
Attorney General Matthew Platkin announced the arrest of fourteen people
as part of an ould time million dollar betting ring
that included college students and athletes.
Organized crime family seem to have a hard time breaking
this old habit, so we're going to break it for.
Them, prosecutors say. Luksey crime family soldier financed his son
to enlist his college and high school friends in the
gambling ring that made more than two million dollars. More
lawsuits have now been filed in the infant formula Bachelism outbreak.
The parents are two infants who got sick are assuing
the makers a Buy Hard Baby formula, which issued a
nationwide recall claiming the company was negligent. Stephen Dexter of Flagstaff,
Arizona told the FDA about his four month old daughter.
She was getting more weak.
But then I came home from work and she was
sleeping and went to pick her up to feed her,
and I couldn't wake her up. She was breathing, but
she just she wouldn't wake up.
At least fifteen infants have been hospitalized in twelve states.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr and this
is Bloomberg Karen.
Thanks Michael.
A time now for our Bloomberg Sports update, and for
that we bring in John stash Hour.
Thanks dammit. Thursday Night football will begin week. The Patriots
stay red hot. They won their eighth game in a row,
beat the Jets in Foxborough twenty seven to fourteen, three
touchdowns for New England's Rooie running back Trebon Henderson. The
MVP is the same as last year, show aol Tony
winning for the fourth time. It was unanimous and Aaron
Judges third al MVP award in a closer vote with
Cal Rawley, who hit sixty home runs. Judge hit fifty
three and he won the batting title. That's your Bloomberg
Sports update.
Stay with us more from Bloomberg day Break coming up
after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Donald Trump is putting
a new focus on affordability after Democrats elect election wins
last week. I'm significant tariff cuts and new trade frameworks
with Latin American countries to address voter concerns. National Economic
Council Director Kevin Hasset says it's been on the administration's
mind for a while. One of the things that people
have been talking about just the last few days is,
you know, thinking about changing tariffs for foodstuffs. White House
Economic Advisor Kevin Hassett spoke with Bloomberg host David Rubinstein
at the Economic Club of Washington. We're joined now by
Bloomberg Breaking News editor Alexander Pearson and alex What is
it exactly now that the Trump administration is thinking about
when it comes to addressing these concerns.
Good morning, Good morning Nathan right now. Yeah, as you say,
the affordability issue is quite large in the administration's mind
after the Democrats school some impressive wins in recent weeks.
And what we saw yesterday was the administration commands say
they've signed framework agreements trade agreements with full Latin American
countries Argentina, Guatemala, El Salvador, and Ecuador, and the idea
there is to not low overall tariffs, but lower tariffs
on certain grocery ideas that have seen pretty high prices
in recent months in the US. So that includes things
like beef, coffee, and bananas.
Is this a taskit acknowledgment that the tariffs have raised
costs on consumers. The administration has sort of resisted that
idea for a while.
I think so it's a fair interpretation because before the elections,
and certainly before you know, the Democrats one of those elections,
the affordability sort of talking point wasn't very strong among
White House officials or Trump, and now they seem they're
very much mentioning it to the public or when they
speak with journalists. And the timing certainly is very interesting
that they've decided to announce these new framework deals within
weeks of an election that was very much defined by affordability.
Yeah, the timing is very interesting considering that Democrats might
still be looking to keep healthcare affordability as an issue
following the end of the government shutdown. Walk us through
the contrast here. How could this play out over the
next few months in terms?
I mean, the Democrats will definitely want to build on
the momentum that they had in the elections recently as
we move towards the midterms next year, and certainly if
prices you know, stay elevated on certain grocery items, if
inflations just stays around that three percent level that we've
been seeing in recent months, then that's something that they
think they'll be able to cash in on electorally. And also, yes,
as you say, in terms of the healthcare subsidies, that
is an issue that has not yet been resolved. There's
supposed to be a vote on that in mid decembit
in terms of extending certain subsidies for the Affordable Care Act,
and if that doesn't happen, premiums are probably going to,
you know, increase quite significantly for many Americans. And that's
something that the Democrats will also want to certainly zero
in on as they look towards the midterms next year.
Now, when it comes to these trade frameworks that the
White House has announced with these four Latin American countries,
we're talking about beef, bananas, and coffee beans. I mean,
that's just kind of on the margins, isn't it. Overall
teriff rates are still going to beware is fairly elevated.
Yeah, that's right. I mean, in terms of for three
of these countries, including Argentina, it stays at around ten percent.
For Ecuador's stays at fifteen percent. So we are really
talking about margins. We're talking about very specific products that
you know, a lot of Americans buy every day. But yeah,
in terms of overall trade flows, this is not really
going to make a dent, and certainly in terms of
the global wild in terms of global trade, it's not
going to make much of a dent. These four countries
are important, but certainly don't compare to the likes of
China or Europe as trading partners for the United States.
And in our last thirty seconds, Alex, when we're talking
about improving access to beef in places like Argentina and Brazil,
what could that mean for American cattle ranchers.
They probably will not be very pleased. So Trump had
already signaled that he would try to get beef prices down,
which has you know, a lot of people who regularly
eat beef, and part of that was to increase inputs
from Argentina that already occurred before yesterday's announcement that they
would increase beef imports, and that annoyed the ranching lobby
in the US understandably, and so this new framework agreement
with Argentina is probably going to only add to their
annoyance with this administration and could set up a fight
in the future.
This is Bloomberg Daybreak, your morning podcast on the stories
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