US-China Trade Framework; Musk Regrets Posts about Trump

Bloomberg Audio Studios, Podcasts, radio news.
Good morning.
I'm Nathan Hager and I'm Lisa Matteo. Here are the
top stories we're following today.
Lisa, we begin with a preliminary deal between the US
and China. The two countries have agreed on a framework
for how to implement the consensus they reached in a
prior round of trade talks in Geneva. The framework includes
China's pledge to speed up shipments of rare earth metals
and the US easing some of its export controls. Here's
Commerce Secretary Howard Lutnik, the two.
Largest economies in the world have reached a handshake, right
for a framework.
We're going to start to implement that framework upon.
The approval of President Trump, and the Chinese will get
the president cheese approval, and that's the process. So once
the President's approve it, we will then seek to implement it.
Commerce Secretary Howard Lutnik says the two sides negotiated for
more than twenty hours in London. The deal could still
be rejected by Presidents Trump and Sheet. Many issues remain unresolved,
including China's trade surplus with the US and concerns over
dumping goods on US markets.
Meanwhile, Nathan Bloomberg News has learned the European Union believes
trade negotiations with the US will extend beyond Donald Trump's
July ninth deadline. The date marks the end of President's
ninety day pause on most global tariffs. After that point,
US charges will increase dress drastically for many nations, with
EU facing a fifty percent levy if a deal can't
be struck and no extension is offered.
And Lisa, there is a legal victory for the president
on the trade front. A court has ruled that the
President can continue enforcing his global tariffs. The US Court
of Appeals for the Federal Circuit extended an earlier reprieve
for the Trump administration, which is challenging a lower court
ruling that blocked the tariffs. Arguments are scheduled for July
thirty first.
Well, now to the latest on the unrest in Los Angeles.
The city imposed a curfew last night in a stretch
of downtown that's seen the highest tensions over immigration rates.
Almost three hundred and eighty people have been arrested across
LA since the weekend, and clashes between protesters and law enforcement.
But after President Trump authorized the deployment of seven hundred
Marines and up to four thousand National Guard troops into
the city, California Governor Gavin Newsom is sounding a warning.
California maybe first, but it clearly will not end here.
Other states are next. Democracy is next. Democracy is under
assault before our eyes. This moment we have feared has arrived.
In a televised speech, Governor Gavin Newsom said ICE agents
have been jumping out of unmarked vans and detaining people
in heavily Latino neighborhoods. The Trump administration has said the
conditions in LA are spiraling and federal forces are needed
to support immigration agents and restore order.
And other political news, Lisa.
Two winners have emerged in the race to be the
next governor of New Jersey, and we get the very
latest on that from Bloomberg's John Tucker, John Man, Good
Morning Nathan.
Republican Jack Chitarelli and Democratic Congresswoman Minkey Cheryl won their
primary elections, Cheryl emerging from a crowded field on the
strength of her background as a Navy pilot and former prosecutor.
In her victory speech, the fifty three year old Cheryl
criticized Chittarelli as a lackey of Donald Trump and invoked
New Jersey's role in the American Revolution.
We are in.
An American crisis, but not in a war for independence,
in a fight for a future, to fight for justice,
for liberty, for opportunity, and for prosperity.
All the sixty three year old Chittarelli, a former state
lawmaker and small businessman, wasn't shy about his affinity with
the president.
Add to our most well known part time New Jersey resident,
who honored me with his endorsement and strong support.
Thank you, President Donald J. Trump thirty four percent of
the vote. Her closest competitor was Newark Mayor ros Barrocka
with twenty percent. Chittarelli had sixty eight percent, compared to
his closest competitor, Bill Spadia, who had twenty two percent.
New Jersey has been reliably democratic in senate and presidential
con that it's a can't contest for decades, but the
odd year races for governor had tended to swing back
and forth. New Jersey and Virginia the only states that
hold races for governor the year after a presidential election,
and results are often seen as an early barometer of
voter sentiment ahead of next year's congressional midterm. On John
Tucker Bloomberg.
Radio, all right, thanks for that, John Well. The debate
continues on Capitol Hill on President Trump's three trillion dollar
tax and spending cut bill. Senate Majority Leader John Thune
says Republicans will deliver on the president's campaign promises to
end taxes on tips, overtime, social security, and auto loans.
House Ways and Means Chairman Jason Smith says any bill
that doesn't would be dead on arrival.
Tax on tips, no tax on overtime. These are items
that the President spoke at every one of his rallies,
and seventy seven million people voted for him. The House
delivered on it. The Senate will deliver on it as well.
House Ways and Means chair Jason Smith spoke on Bloomberg's
Balance of Power. Meantime, the House Rules Committee is moving
ahead which changes to make the bill comply with Senate
budget rules. They include stripping out language targeting an energy
assistance program, medicaid provisions in the Social Security Act, and
a small amount of new Pentagon funds.
Of course, as you remember Lisa.
Disagreements over the text cut bill led to a major
falling out between President Trump and Elon Musk, now the
world's richest man. Maybe looking to patch things up, Let's
get that story from Bloomberg's Kimberly Adams and.
Posting on X in the middle of the night, the
billionaires said, quote, I regret some of my posts about
President Trump last week.
They went too far.
Musk had served as a close advisor and confidant to
the President until a bitter public falling out last week.
The dispute, which was triggered by Musk's opposition to the
tax cut bill Trump is pushing through Congress, posed a
threat to Musk's wealth when the President raised the prospect
of retaliating by cutting off his government contracts. Musk had
riled Trump by claiming credit for his election victory, endorsing
his impeachment, and even suggesting the President was implicated in
the sex crimes of Jeffrey Epstein, Kimberley Adams, Bloomberg Radio.
Thank you, Kimberly. Meanwhile, Elon Musk space company SpaceX is
calling off a mission that was supposed to take off today.
Four private astronauts, including the first Indian in space in
more than forty years, were scheduled to lift off to
the International Space Station with NASA and Axiom Space Well.
Now the launch is being delayed to fix a liquid
oxygen leak that was found during inspections of the Falcon
nine rocket. SpaceX says a new launch date for Axium
Mission four will be announced once the repairs are complete.
Hik Ker on Earthly.
So let's turn to the markets, and the econo I
mean futures are a touch lower this morning.
Is investors a way to key reading on inflation?
At eight thirty am Wall Street time, we get the
May Consumer Price Index and we get a preview now
from Bloomberg's Michael McKee.
Economists are certain that Trump import tax will push up inflation.
What they don't know is when, by how much and
for how long. Today's data should offer a first clue.
The consensus is the first inflation waves could be lapping
at the shore. Prices for imported goods like furnishing, apparel
and electronics and for used cars are expected to rise,
and that should push headline and core CPI up for
the first time since January. How much they rise, we'll
set the tone on Wall Street, although it will take
a few more months data for the FED to decide
whether there is a price problem. Michael McKee, Bloomberg Radio.
Thanks Mike. Meanwhile, a growing course of advisors inside and
outside the Trump administration are pushing for a familiar name
to succeed Jerome Powell as FED chair.
US Treasury Secretary.
Scott Besson, Bloomberg's Valery Titel says in Ves would likely
consider best in a safe choice to succeed Powell, but.
Be seen as very loyal to Trump, and we know
that Trump wants these FED cuts sooner rather than later,
So perhaps if he does emerge as a clear front runner,
the market might take that very dubbishly.
Bloomberg's Valery Tititel ads at President Trump said Friday he
would name a successor quote very soon. J Powell's term
as FED chair ends May twenty six.
In company news, Lisa General Motors is making a big
move in the US to help manage President Trump's tariffs.
GM plans to invest four billion dollars in US plants
over the next two years to boost output of some
of its top selling gas powered vehicles. GM says the
investments will allow it to produce more than two million
vehicles in the US each year, reduce its reliance on
Mexican factories, and add between three to four thousand US
jobs and.
A record for Nintendo. The company says it's sold three
and a half million plus units of the Switch to
in just four days. Nintendo has already sold more units
than the original, which did in its first month in
twenty seventeen, and it's on track to meet its target
of selling fifteen million units by March next year. 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, thank you very much. Lisa Representative Lamonica mcgiver has
been indicted on federal charges alleging she assaulted and interfered
with immigration officers during a skirmish outside of New Jersey
detention center. Mcgiver has disputed the allegations as baseless. The
skirmish happened last month as Newark's mayor was arrested after
trying to join mcgiver and two fellow Democratic representatives who
said they went to conduct congressional oversight at Delaney Hall.
Police bodycam video shows mcgiver's elbows pushing into an officer,
but it is not clear from the video whether that
contact was intentional. Employees walked out at the CDC Tuesday,
one day after Health and Human Services Secretary Robert F.
Kennedy Junior removed all seventeen sitting members of the Centers
for Disease Control and Prevention's Vaccine Advisory Committee. Some experts
are concerned during this could backfire as the flu and
cold season rolls around in the fall. Emergency medicine physician
doctor Darien Sutton.
In the short term, there's typically nothing that is significantly changing,
and typically the advisory committee makes recommendations that then leads
to the approval by the Health and Human Services Secretary
and then, inevitably, vaccine companies will typically cover that vaccine
and provide coverage and access. So we have to wait
and see how these changes will take effect in the fall,
especially with the upcoming flu season.
Doctor Sutton spoke to ABC. Austria has declared a three
day period of national mourning following a massacre at a
school in the city of Gratz. Police say investigators found
a good bind letter and a non functional pipe bomb
when they search the home of a one year old
man who opened fire at his former school, killing nine
teenagers and a teacher before taking his own life. The
Air Force has reduced its request to Congress for f
thirty fives from forty eight to twenty four. It's a
significant cut that may reflect the Defense Secretary's plan to
reduce US military spending by eight percent over the next
five years. Global News twenty four hours a day and
whenever you want it with the Bloomberg News. Now Now
Michael Barne, this is Bloomberg Lease.
Thank you, Michael. Time now for the Bloomberg Sports Update.
For that we bring in John stash Our. Good morning John,
Good morning Lisa.
The Yankees were coming off Sundays lost to Boss to
the game where Aaron Judge had two run homers in
the first and ninth innings in Kansas City. He came
up again with a man on in the first.
Swigging a deep blast way on into my field. Judge, chance, stop,
loot stop, why money to run jackular first nothing again, unbelievable.
Yes, Network, the call they got out the tape measure
four hundred and sixty nine feet for Judges twenty fourth
on run the ball landed on the roof of the
Royals Hall of Fame. Austin Wells had a three run shot,
then a two run double. Yankees all over the Royals
ten to two. Max Freed is now nine and one.
At City Field, Mets trailed Washington for two in the
eighth inny Uan Soto, who had homered earlier with an
RBI double, and then Pete Alonzo drove him in to
tie the game, and then Jeff McNeil a walk off
hit tenth inning, Mets won five to four. They'd won
thirteen of the last sixteen. The Giants have won six
in a row, and all by one run. They scored
four to the ninth to beat Colorado Red Sox, a
three to one win over Tampa Bay Thunder and Pacers
tied at one. Game three the NBA Finals tonight at
Indianapolis one. It's worth Indiana zero to three in Game threes,
thirteen and two in all the other games. The Knick
search for a new coach had them reportedly asked for
permission to interview Houston coach Jimmy Udoka and Minnesota's Chris Finch,
and both times permission denied. Running back JK Dobbins signed
with Denver, played previously with the Ravens and Chargers. First
look at Aaron Rodgers in a Steelers uniform and after
his mini camp workout, he was asked why he chose
to play for Pittsburgh.
It starts with Mike Tummlin and then I've been a
fan of his for a long time. There's a few
iconic franchises in the NFL. I played for one of
them for eighteen years. This is another one of those.
There's something special about, obviously this area. So many great
quarterbacks are from Pittsburgh.
The forty one year old lifelong bachelor, Rogers revealed he
recently got.
Married John Stashawi, Bloomberg Sports.
Lisa Henry, all right, thank you, John. Taking a look
at the markets once again, future still following. We have
NAZAC futures down to ten percent, twenty seven points down,
futures down ten percent, sixty nine points, a SP futures
falling a ten that for percent or nine points. The
two year yield four point zero two percent, that is
little chains and the yield on the tenure four point
four to eight percent, and that's up one basis.
Point coast on Bloomberg radio nationwide on Sirius Exam and
around the world on Bloomberg dot Com and the Bloomberg
Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
It took two days of marathon talks, but the US
and China have reached an agreement to restart flows of
sensitive goods that they agreed to start in Geneva just
a month ago. Commerce Secretary Howard Lutnix spoke after the
negotiations wrapped up in London last night.
First we had to get sort of the negativity out,
and now we can go forward to try to do
positive trade, growing trade and beneficial to both China and
to the United States.
From now, Commerce Secretary Howard Lutnix, speaking in London overnight
this morning. We're joined by Bloomberg New Senior Editor Bill Ferries. So, Bill,
is this kind of back to where we started from
for the US and China?
Good morning, Hey, Good morning, Nathan, Thanks for having me.
It is a little bit It depends on how far
you want to roll the calendar back, but it is,
you know, roughly back to where the US was at
least a month ago when Scott Bessen and his Chinese
counterpart reached a deal in Geneva that was supposed to
get trade talks on the right track. It didn't really
work out that way, but the two sides had two
intensive days there in London and they really did seem
to find an agreement. We're still waiting for the details
of what was in that accord, but Howard Lutnick, when
he spoke to reporters afterwards, made it clear that one
key issue was resolved, at least from the US perspective,
and that is the export of these rare earth magnets
that are so critical to businesses from the defense industry
to the auto industry. And it's really believed that that
is what put the pinch on the US to try
to get a deal done quickly.
Now you look at the market reaction this morning, a
modest dip in futures, with some of those details still
waiting to be released here, particularly in terms of the
export controls that the US had put on China. There's
still a lot of questions to be answered there.
Yeah, before this deal was reached, there was a lot
of talk about the US potentially lifting its restrictions on
things like chip software design. Chip software design software and
jet part jet engine parts and things like that. It's
not clear what the US conceded in this side. We
have seen Asian stocks, particularly some of the consumer electronics stuff,
doing quite well today. It's a bit of a contrast
with the reaction in the US market, which, as you said,
has been a little bit of a little bit down
in terms of the futures.
So while we're waiting for some of those details to
come out, we've got negotiations going on on multiple fronts,
including with the European Union. It sounds like they're trying
to reach a framework deal of their own before the
July ninth deadline.
Yeah, it sounds like they are looking at potentially getting
an extension already in those talks that you know that
July ninth deadline is just under a month away, and
they are hoping to get some kind of a framework agreement.
But that would allow kind of talks to continue without
without those tariffs kicking back in those suspended tariffs, So
that's something, you know, It is a sign, I suppose
of progress, but also I think just a recognition that
you're not going to be able to work through all
this in the span of just another thirty days or so.
All right, turning from the trade talks to I guess
domestic politics, the situation in Los Angeles continues to unfold.
There's an overnight curfew, and the war of words between
President Trump and California's governor just is not letting up.
Bill that's right.
I mean, it was a little bit of an even
quieter day and night compared to really compared to the
weekend when you had all those cars getting burned. Things
have calmed down a bit on the streets. The rhetoric
has not really calmed down at all. There is a
curfew in about a one square mile section of Los Angeles,
fairly confined area where a lot of businesses were attacked
or looted overnight, according to that's according to Mayor Karen
Bass And there are now up to four thousand National
Guard troops and seven hundred Marines who have been authorized
to deploy to the city. California Governor Gavin Newsom getting
on the air today addressing his state, saying that California
may be the first to face these policies from the administration,
but saying it clearly won't be the last, and so
that rhetoric is continuing to escalate, even as the situation
on the streets has perhaps quieted a little bit.
Our last minute, while we haven't really been talking much
about the war of wards between President Trump and Elon
Musk with what's been happening in La but Elon Musk
looks like he's trying to dial things back there.
Yeah.
Elon Musk is not, I don't think, known for making
a lot of apologies, saying that he regrets some of
the posts he put up about Donald Trump last week,
saying that they went too far. Of course, you you'll
remember that he said that there were mentions of Donald
Trump in the Epstein files and he said have a
nice day DJT after posting that. He never provided any
evidence for it, but it was seen as a particularly
low blow against the president, and obviously, you know, part
of the bigger meltdown we've seen these two, these two
leaders have.
This is Bloomberg day Break, your morning podcast on the
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