US-EU Trade Deal Concerns; Trump Responds to Powell Report

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.
Karin, we begin with the global trade war. European Union
officials are set to meet in the coming days to
discuss how to respond to a possible no deal trade
scenario with President Trump. The move comes as the US
is said to be seeking tariffs on EU goods higher
than ten percent with limited exceptions. We get more from
Bloomberg's Oliver Crook in Berlin.
But at the end of the day, I think that
their frustration, their difficulty is that it is going to
come down to Trump at the end of the day,
how he's feeling very close to the negotiations. I was
at the G twenty just last week, you know, and
I got a feeling from some of the finance ministers,
many of them didn't want to speak on the record
on this, but saying that basically they did feel that
the United States was softening a little bit, potentially because
they are taking on a sort of trade war against
everybody all at once. But there was also this sentiment
out up there that in the long term, this negotiation,
whatever happens over the next couple of weeks is probably
not the end of the discussion in terms of tariffs
with the United States. So potentially for many of these
countries looking to build coalitions outside of Europe, not just
the EU, something bigger in order to potentially take on
the United States and in more confrontational matter, because who
knows what the next few years will hold.
Bloomberg's Oliver Crooks says President Trump wrote to the EU
earlier in the month, warning the block would face a
thirty percent tariff on most of its exports on August first.
Nathan Commerce Secretary Howard Lutnek says he's confident to deal
with the EU can get done, but he's sticking with
the August first deadline for higher tariff rates on major
trading partners and a baseline of ten percent for everyone else.
The world is paying ten percent right now, and China's
paying thirty percent. Ten percent is definitely going to stay.
The small countries are likely to be ten percent, but
the bigger countries are likely to pay higher. That's just
the way it's going to be, because we can't have
these one trillion dollars trade deficit.
Commerce Secretary Howard Ludnik spoke on CBS's Face the Nation
Heard every Sunday on Bloomberg Radio and Karen.
President Trump's pushing back on a report that Treasury Secretary
Scott Besstt warned that ousting FED chair J Powell would
be bad for markets. In a post on truth Social,
the President called the Wall Street Journal quote typically untruthful.
He went on to say he knows better than anyone
what's good for markets, touting recent record highs for the
major indexes. The journal cited sources who said bess and
warned that attempting to oust Powell would result in political
and legal obstacles.
Nathan The yen is strengthening versus the dollar has investors
digest the impact of Japan's election results. Prime Minister Shighiro
Ashiba says he intends to stay on despite his ruling
coalition failing to secure a majority in the two hundred
and forty eight seat Upper House in a crucial parliamentary election.
David Boyling is a director at the Erasure Group.
This is sort of the second punch that Aeshiva has taken.
I think it's very hard. He was already on shape
ground he's even on more shaky ground to remain as
Prime minister. He's vowed to do so, but you know, Tato,
also very influential member, former Prime minister, has already said
that he wants to push him out. So I think
there's going to be the knives are coming out and
we'll just have to see if he can hang on.
It's not going to be easy, you Raising Group's David Boyling.
The loss is another blow to Aschiebas coalition, making it
a minority in both houses following its October defeat in
the lower House election.
Well, Karen of worldwide cyber attack is underway after hackers
exploited a widely used Microsoft program. Bloomberg's John Tucker's here
with the latest, John, what's happening?
Well, Hackers Nathan spotted a security flow at Microsoft's Sharepoints servers.
This has allowed them to launch a worldwide attack on
government agencies and businesses over the past few days. The
US Cybersecurity and Infrastructure Security Agency says this vulnerability allowed
hackers to access finle systems in internal configurations, as well
as execute code. More than ten thousand companies with SharePoint
servers are at risk. The US is the largest number
of these companies. Silas Cutler, researcher at Michigan based cybersecurity
firm Census, says this is a dream come true for
ransomware operators. At Washington Post reports the breach has already
affected US federal and state agencies, universities, and energy companies. Now,
Microsoft has released a new security patch for customers to
apply to their SharePoint servers to as they put a
mitigate active attacks targeting on premise servers. They're also adding
to roll out others. Shares of Microsoft pre market right
now down about two tenths of percent in New York.
On John Tucker Bloomberg Radio.
All right, John, thank you. Meanwhile, Alaska Air has resumed
operations after an IT outage temporarily grounded its fleet. The
grounding was canceled just after two am Wall Street time
this morning. It's the second time in over a year
Alaska Era has had to ground its fleet because of
IT problems.
Checking sports Now, Karen Scotty Scheffler has captured his second
major this year after dominating the British Open. Let's get
the details with Bloomberg Sports anchor John Stash Hour Stash,
this was an impressive performance.
It really was. Nathan Scheffler had a four shot lead
to start the final round and that lead drew to
seven and when he played the last hole in Royal
Port Rush, he was up by four.
The champion golfer Scotty Cheffler.
He felt in his career and yself felt.
Today it was only a matter of time before they
claimed the brittisplies in golf.
And that's courtesy of the RNA. Finished seventeen under part
at one point, went thirty two holes without a bogie.
He's the seventh and Open Championship history that four rounds
in the sixties. Well hear from Scheffler coming up. John Stashawer,
Bloomberg Sports.
All right, sounds good, Thank you John. Another sports related news,
President Trump is threatening to block the Washington Commander's bid
to build a new stadium in the district of Columbia.
The President says he may put a restriction on the
team if they don't change the name of the team
back to the Washington Redskins. The President has previously complained
about the football team's decision to change its name, aid
concerns the old name was a slur against Native Americans.
Donald Trump also leveled criticism at the Cleveland Guardians, the
Major League Baseball team that changed its name from the
Cleveland Indians in twenty twenty one.
Back on Wall Street, Karen Investors are huddling up for
another busy week of earnings. Let's take a look with
Bloomberg's Charlie Pellett.
Tech names including Tesla and Alphabet will be very much
in focus and at expectations from analysts for S and
P five hundred profits to rise two point eight percent
year over year. Scott Kroner has head of US Equity
Strategy Research at City Group Global Markets.
I think we're looking at a burgeoning free cash flow
backdrop for many of the companies within the S and
P five hundred, and what.
You get with this is a lot of financial flexibility.
Also reporting this week, IBM and Texas instrum on Capital One, Financial,
Ameror Prize, Blackstone, Chipotle, Mexican Grill, Coca Cola, General Motors,
and Honeywell International, among many many others. In New York,
Charlie Bloomberg Radio Thank you.
Charlie Stilantis has swung to a two point seven billion
dollar net loss in the first half as restructuring expenses,
waning sales, and the impact of US tariffs hit the
struggling automaker. Stalantis's shipments fell six percent in the second
quarter amid declines in North America and Europe. The company
still has an issued financial guidance for this year due
to US tariff uncertainties. 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 Monica Ricks Monica, Good morning.
Hey, Good morning, Karen. Ukraine says it is under attack
this morning Ukrainian air defense as Russia launch missiles and drones,
with those explosions heard across the country. The attacks coming
a day after Ukraine's pre In Zelenski pushed more peace
talks with Russia. Meantime, the Palestinian health Ministry says its
experience its deadliest day in over twenty one months of war.
More than ninety Palestinians have been killed this weekend while
trying to access food and aid in Gaza. The head
of FEMA will testify before Congress this week. Bloomberg's Amy
Morris is in Washington.
David Richardson has led FEMA since May He'll appeared July
twenty third at a hearing for a House Emergency Management
Panel subcommittee Chairman Scott Perry will focus on how FEMA
can become more agile and effective in disaster response. But
lawmakers are also expected to grill Richardson on FEMA's response
to the Texas floods, which killed more than one hundred
people earlier this month, and Democrats want to know about
the time it took FEMA to activate search and rescue
teams and how it managed calls for help. President Trump
earlier this year had announced plans to overhaul or even
eliminate FEMA to give states a bigger role in disaster response.
In Washington, Amy Morris Bloomberg Radio.
In Texas, the state legislator there will hold a special
meetia on those devastating floods. The number of missing people
has dropped dramatically, down to just three people in Kirk
County now. More than one hundred and thirty people were
killed at a close call in the sky in my
not North Dakota. Delta pilot there had to make what
he described as an aggressive mid air maneuver to avoid
crashing into a B fifty two bomber. The pilot says
he was never given a warning by air traffic control
and had to apologize to passengers once they were on
the ground. Luckily, no one was hurt. Global News twenty
four hours a day and whenever you want it with
Bloomberg News. Now, I'm Monica Ricks.
This is Bloomberg.
All right, Monica, thank you time now for the Bloomberg
Sports Update. Here's John stash Hour, John, Good morning.
Yeah morning, Karni Scotti. Scheffler dominated the Open Championship in
Northern Ireland, finishing seventeen under par, winning by four shots.
One couldn't help but at least begin to consider whether
he is now dominating golf like Tiger Woods once did
a Royal port ross. Scheffler was asked about the comparison.
I still think they're a bit silly, you know, Tiger one,
what fifteen majors, this is my fourth, could just got
one fourth of the way there, So just I mean,
it's I think Tiger stands alone in the game of golf.
You know, he was inspirational for me growing up, and
he was a very very talented guy, and he was
a special person to be able to be as good
as he wasn't the game of golf, and.
It's true that well.
Scheffler has won four majors over the last four years.
Tiger won four in a row in two thousand and
oh one, including a win at the PGA that was
by fifteen shots. American Harris English yesterday finished second and
New Jersey native Chris gottter Up was third. He had
only learned last Sunday that he was going to be
in the field after he beat out Rory McElroy.
At the Scottish Open.
Yankees off the big comeback Saturday night in Atlanta. Had
a quick start first inning Yesterday.
Hi joed right center Peel Parrot say Yuh a home
run for Judge, his thirty sixth of the year.
It's one nothing yet, yes Network Yanks beat the Braves
four to four to two, solid sixth inning start from
Marcus Stroman. Toronto finished a sweep of the Giants. The
Blue Jays have won ten in a row at home
that includes the recent four games sweep of the Yankees.
Are now back in Toronto tonight with the Jays three
games ahead in the alas the Mets first wins. It's
the All Star brag at City Field salvage one from
Cincinnati three to two. The Red Sox salvaged one from
the Cubs at Wrigley six to one. Garrett croches eleventh
win the National sixtieth loss beaten by San Diego eight
to one, and Milwaukee completed a second sweep. Over the
last two weeks of the Dodgers and the Brewers have
won ten in a row. They're tied for first in
the NL Central. John stashiew We're Bloomberg Sports. Carry 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. Eleven days to go until
President Trump's August first tariff deadline. The European Union is
said to be prepared now for a no deal scenario,
while the Trump administration holds firms to its demands on
the EU and other major trading partners. Commerce Secretary Howard
Ludnik made the case on CBS's face the nation.
It's fair trade, it's reciprocal trade.
Why should we have our country be wide open while
there's is.
Closed Commerce Secretary Ludnik on Face the Nation, heard every
Sunday on Bloomberg Radio. This morning, we're joined by Bloomberg's
Jill Disis. So, Jill, the negotiations go on on the
media and behind closed doors as well. Where do things
stand between the US and EU just ahead of this
August first deadline?
Good morning, Good.
Morning, Nathan Well. I think the best way to think
about this agreement at this point, or any kind of
negotiation that's unfolding, is that it does appear as if
the stance by Donald Trump himself, the Trump administration, the
White House is hardening ahead of that August first deadline.
At this point, Trump has already threatened to hit most
EU exports with the tariffs of about thirty percent, and
so from an EU negotiation side, you've got, you know,
this block that is sitting there thinking, you know, is
it actually even possible to try to negotiate for a
lower rate. I think that at this point, you know,
what seemed a little bit more conceivable several months ago,
this idea that maybe you could, you know, negotiate for
tariffs of ten percent on most goods or so seems
to be you know, a bit out the window. So
if your officials and Brussels, I mean, I think what
we've heard is that ultimately what they are trying to
calculate for now is what happens if this agreement that
is reached by August first, or you know, whenever that
deadline passes, you know, what happens if that's you know,
incredibly unbalanced. What if they don't end up getting a
lot of the major exemptions that they were ultimately hoping for.
And so if your Brussels you're looking at this arrangement
and you're saying, okay, you know, potentially there could be
preparations to retaliate in a scenario there's absolutely no agreement.
So I think that that's kind of where we're at.
I'd actually argue that when you look at the totality
of all of these other negotiations that are happening around
the world, you know, other economies are also in sort
of a similar position where I think they're you know,
increasingly being confronted with this possibility that you could have
fairly high tariffs by August first, perhaps higher than again,
what was you know, ultimately thought of when Trump first
came into the office in January.
So what could retaliation by the EU look like, I mean,
we've heard the possibility of retaliatory tariffs on you know,
certain politically sensitive goods as well as the idea of
this anti coercion instrument coming out what seems most likely
at this point.
Yes, So let's start with those potential tariffs. So the
EU has already actually approved potential tariffs on somewhere in
the neighborhood of twenty one billion euros worth of US goods.
The idea is that you know, these could be implemented
that would target politically sensitive American states Potentially they include
products such as soybeans from Louisiana that's of course home
to how speaker Mike Johnson, potentially some other agricultural products, poultry, motorcycles.
They've also prepared a list of tariffs on an additional
seventy two billion dollars worth of a billion euros rather
worth of American products in response to reciprocal levies and
automotive duties. So, you know, those additional targets. And then
the thing that you're talking about at the end there
this anti coursion instrument. That is something that you know,
we've reported on recently a growing number of EU member
states are thinking, you know, look, this is ultimately what
would be our most powerful trade tool. This would give
officials more broader powers to take retaliatory action. And so
that's something that at least in certain corners of the
block is being pushed. But again, I think, you know,
it just really kind of goes to show you that
at least when it comes to the EU again, they're
preparing for this idea that what ultimately is decided may
not be particularly favorable to the EU, and so it's
pushing them in this position to consider those retaliatory efforts.
This is Bloomberg day Break, your morning podcast on the
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Ray