China Confirms Trade Framework; Stocks on Brink of Record Highs

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.
The rising stocks comes as the US moves closer to
trade deals with major trading partners. In fact, this morning,
China has confirmed its signed to trade framework with the
US in recent days that echoes comments from Commerce Secretary
Howard lutt Nick heard on Bloomberg's Balance of Power that.
Deal was signed and sealed two days ago, their prime
minister and their parliament have to approve it, and the
President likes to close these deals himself. I mean, he's
the deal maker. He loves to close it. And then
what we're going to do is we're going to lay
out a structure of all the different kinds of tariff
arrangements with different countries and get that ready for July ninth.
Commerce Secretary Howard Ludnik says the agreement codifies terms laid
out earlier this month in talks between the US and
China in Geneva. He says the US has imminent plans
to reach agreements with a set of ten other major
trading partners. You could get the full conversation with the
Commerce Secretary on the Bloomberg podcast page on YouTube.
Nathan President Trump says a quote very big trade deal
could be signed soon that would open up the Indian
market to American business. Talks have been strained by Washington's
demand that India opened its market to genetically modified crops
and ask new Delhi has rejected.
Source to see.
A team of Indian trade officials is slated to hold
meetings with officials in Washington this week to resolve differences
and find a common ground.
And Karen The Treasury Departments announced to deal with G
seven countries to remove a controversial revenge tax from President
Trump's Tax and Spending Bill. Section eight ninety nine would
have targeted countries whose tax policies were deemed discriminatory by
the US, applying higher rates to those jurisdictions. Under the agreement,
American firms will be exempted from OECD broker fifteen percent
global minimum tax rates for big companies. We get more
from Bloomberg's Jill Desis.
The big news is that US companies are going to
be excluded from that pillar two. That's the global minimum
tax that was implemented in twenty twenty four. I do
believe at this point you've got obviously the US saying
that they've reached the STELG seven nations. I think this
still has to be formally approved by the OECD at
some point within the next week or so.
Bloomberg's Jill Lisis says section eight ninety nine in the
big tax cut bill had sparked fears on Wall Street,
and beyond that it would make it much more expensive
for foreign individuals and companies to invest in the US.
Nathan Donald Trump is once again criticizing fedch Heer J.
Powell for not cutting interest rates. The President spoke during
a tax bill event at the White House.
And if we had a person over at the FED
that would lower interest rates a little bit, that would
be helpful too. It's hard to believe this is on
top of you know, we have to fight this guy.
He's not doing the job.
Earlier this week, in congressional testimony, how Well suggested that
FED will remain on hold for now because of the
higher inflation outlook.
Let's turn to the latest developments from the Middle East. Now,
Karen Iran is denying that it'll hold nuclear talks with
the US next week. President Trump said there would be
negotiations when he left this week's NATO summit, but Iran's
Foreign minister abbas Urakchi told state television that speculation about
new discussions should not be taken seriously. Meantime, the Senate
received its first closed door briefing on last weekend's US
air strikes on Iran's underground nuclear facilities. Republican Lindsey Graham
says he is satisfied with how the White House has
described it.
Obliterated is a good word for me to use.
I can deal people in South Carolina. Nobody is going
to work in these three sites anytime soon. They're not
going to get into him anytime soon. Their operational capability
was obliterated by Democrat Adam Schiff of California says he
still has questions. We need a lot more information to
make any kind of determination of whether the run and
program was set back by.
A short period of middle period or.
A longer period.
For his party, i Ron's foreign minister says the damage
to the nuclear facilities is considerable and serious. He says
Iran does not currently intend to allow UN inspectors in
to do their own assessment.
Nathan Let's get to the latest.
Now.
In the New York City mayor's race, Eric Adams has
officially kicked off his re election campaign as an independent.
I'm so proud to be here to say to the
people of the City of New York, I am seek
and read lessen your mayor.
New York Mayor Adams dropped out of the Democratic primary
after he faced federal corruption charges that were later dismissed,
and after a Democratic Socialist so Ron Mom Donnie's stunning
win in the first round of that primary, sources tell
Bloomberg News, the man who came in second, former Governor
Andrew Cuomo, has no plans to drop out. That means
Cuomo's name will also appear on the November bellot as
an independent. And now some of Wall Street's elites are
looking for options. Billionaire Bill Ackman posted on x looking
for suggestions for the best centrist to take on Mondani,
the former Democrat turned Trump's supporter, says, if someone's ready
to raise their hand to take care of the fundraising.
Train to markets now, Karen, Futures are higher as we
close out the trading week. In fact, stocks enter today's
session near all time highs. One stock giving the s
and P five hundred A boost is Nike. Those shares
are up more than nine percent. In its latest earnings report,
the sports wh our company said it's year long sales
decline is starting to ease.
On economic front, Nathan, Inflation's going to be in focused
this morning, investors will get a key report on the
Personal Consumption Expenditures Price Index, the Fed's preferred gauge of
underlying inflation, and we get a preview with Bloomberg's and
Michael McKee.
The inflation narrative gets a little more complicated this morning.
Headline and core PCE changed little in May, according to
economists surveyed by Bloomberg. On an annual basis, However, the
inflation figures are forecast to rise. That would make a
July rate cut suggested by a couple of Federal Reserve
officials more difficult to justify. Because economists are pretty good
at calculating the likely monthly changes. The real focus will
be on individual sectors as policymakers look for tariff effects,
they will also be paying attention to the income and
spending numbers, particularly spending for any science consumers might be
pulling back. Michael McKee Bloomberg Radio.
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. Care and President Trump's tax bill as hit
a two hundred and fifty billion dollars healthcare snag in
the Senate. A Republican plan to cut the money in
Medicaid and other healthcare spending hit a procedural roadblock due
to a ruling by the Senate Parliamentarian. The Senate's legislative
rules keeper judged a series of key healthcare provisions in
the legislation ineligible for a special procedure. Republicans are using
to bypass the Senate's normal process so they can avoid
making concessions to Democrats.
President Trump the one big, beautiful bill to secure our borders,
tterpret charge our economy, and bring back the American dream.
That's what's happening to The President hosted senators at the
Whitehouse yesterday. The measure narrowly passed. The House Speaker Mike
Johnson was asked if he thinks the bill will still
pass by President Trump's July fourth deadline.
Well, it doesn't make it easier, but you know me,
Hope springs a journal and we're going to work around
the clock and trying to.
Meet the deadline.
Speaker Johnson urged the Senate not to make drastic changes
to the House passed bill. The defense will deliver closing
arguments today. In the Seawan Didnycombe sex trafficking and racketeering trial,
prosecutors wrapped up their closing argument yesterday. The prosecution believes
that the rap mogul ran his business like a criminal enterprise,
relying on loyal lieutenants. Colmbs has pleaded not guilty to
all charges. The Supreme Court is meeting today to decide
the final six cases of its term, including President Trump's
bid to enforce his executive order denying birthright citizenship to
US born children of parents who are in the country illegally.
The birthright citizenship order has been blocked nationwide by three
lower courts. The Trump administration made an emergency peal to
the Supreme Court. Global News twenty four hours a day
and whenever you want it with the Bloomberg News. Now,
I'm Michael Barr, and this is Bloomberg.
Karen all Right, Michael Barr thank you. Time Now for
the Bloomberg Sports Update, here's John Stanshawer. John, good morning, Good.
Morning, durn All. Scenes in the Mets have not had
the starting rotation they hope to have. Sean and Iya
has yet to pitch code I Sega just went down
with a hamstring injury, and two days later Tyler mcgillhurt
his elbow, and now two weeks after that what appears
to be a serious leg injuried to Griffin Cannon, who's
been a very pleasant surprise after going seven and thirteen
last season with the Angels. He's seven and three, but
in the thirty in the city field a rather freak
non contact a parent achilles injuries, so the Mets had
to use the bullpen the rest of the game, and
four relievers allot only two hits, and the Mets shut
out Atlanta four nothing to gain a split of the
four game series. Afterwards, Mets manager Carlos Mendoza asked about
Ken horrible.
You know, the sucks.
You hate to see it, especially the way he went
down right away, and once you get there and you know,
you're asking what's going on, and then just how everything
develop after that, you know, I feel sorry for the guy,
especially how big he's been for us in the way
he's been throwing the ball the whole year.
The Mets are back in first place because the Phillies
got swept in Houston. The Astros won two to one
after earlier wins one to nothing and two to nothing.
The Rays blank the A's eight to nothing. That's the
A's fiftieth loss of the season. They start a series
with the Yankees tonight in the Bronx. The Mets this
weekend playing Pittsburgh, and the Pirates have also lost fifty games.
Looks like labor p through twenty thirty in the NHL,
where they've had three lockouts the last two decades. The
current deal ends after next season. Two sides said to
be close to agreeing to a four year extension that
would make for an eighty four game regular season, two
games longer than now. Justin Tucker is the most accurate
kicker in NFL history, but the longtime Baltimore Raven was
recently cut. He missed ten kicks last season, and he
was accused by sixteen massage therapists of sexual misconduct. The
NFL has given Tucker a ten game suspension to any
team that signs them doesn't get him until November. John
Stashedwer Bloomberg Sports, Karen Nathan.
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. Turning now to our exclusive conversation with
Commerce Secretary Howard Lutnik on Bloomberg's Balance of Power with
Joe Matthew and Kaylee Lines. He told them the US
and China had signed a trade framework deal two days ago,
and the President Trump suggested the US as close to
a deal with India. He also talked about the White
House doing more deals ahead of the July ninth, so
called reciprocal tariff deadline. Let's listen to part of that discussion.
The tariff program is in the power of the presidency, right.
Congress has given the president the power to work on
these tariffs and to set these tariffs. So that's presidential power.
So what's really interesting is this big, beautiful bill does
not count the eighty eight billion dollars of tariff revenue
we've received, and now we're earning up to thirty billion
a month in tariff revenue so far, and as you
get to July ninth, that number is only going to
go higher. We're going to announce a whole bunch of
deals over the next week or so, and then we're
just going to send letters out to everybody who's responded
to us put them in the right category, very an
awful go. So there's going to be tens of billions
per month, and there it's not included in the bill.
So when they talk about the deficit, when they're talking
about the bill, they're only talking about the things that
that bill touches. The extra four hundred or five hundred
billion dollars a year that the tariffs bring in, the
new tariffs bring in, that just doesn't count for the bill.
But of course, of course that Kayosh, counts for America.
Mister Secretary, you just said that you're going to announce
a whole bunch of deals over the course of the
next week with what countries, And does that include the
China deal the President suggested was signed yesterday?
What is that?
So the China deal? We inked the deal. You remember
we had a trip to Geneva and then that was
being slow played. We got back together in London and
that deal was signed and sealed two days ago. President
just said it, and then he also suggested that we are,
of course at the very close finish line with India.
Of course, the way these deals happen is their Prime
Minister and their parliament have to approve it, and the
President likes to close these deals himself. I mean, he's
the deal maker. He loves to close it. I think
we have deal after deal after deal. The President's going
to make his calls. He's going to decide exactly the
finishing touches on them, and then what we're going to
do is we're going to lay out a structure of
all the different kinds of tariff arrangements with different countries.
Right there are countries with huge deficits, there are countries
that are balanced. We're going to set that all up
and get that ready for July ninth.
So it sounds to me, the Secretary correct me if
I'm wrong as I listen to you, that we either
get eighty eight deals announced in the next two weeks
or there's going to be action one way or the
other by this administration. That July ninth will be conclusive.
If there's no deal, here's the new RECIC world tariff.
Is that right, of course? So what we're going to
do is we'll announce some deals. But basically the deals
we're going to announce are the are sort of the
head of the class, the structural spot in the line,
and then all the other countries will fit behind those categories. Right,
So we're going to do top ten deals, put them
in the right category, and then these other countries will
fit behind. So you'll have South American deals and you'll
have African deals. You'll have it all structured and set up,
and that's the model how you do leadership. And we
will put these people in their proper buckets on July ninth,
So those who have deals will have deals at everybody
else who's been negotiating with us, they'll get a response
from us, and then they'll go into that package and
July ninth will go forward. And as the President said,
if people want to come back and negotiate further, they're
entitled to, but that tariff rate will be set and
off will go.
Where does Europe fall in that sequence, mister Secretary, there
was reporting that the European Commission has received the latest
offer from the US. Are you expecting that offer to
potentially be accepted by next week?
I think that Europe has done an excellent job. They
are working hard. They remember it was a very very
slow process, if you remember, the and put out a
truth kind of motivated them. With that truth, as Donald
Trump is capable of doing, they came to the table.
Then they started negotiating. They really put it on the table.
And I'm actually I've become optimistic. I think if you
had asked me three weeks ago before that truth, I
would have said no way. But since that truth by
the President, I really feel I'm optimistic. I think we
could get a deal done now Europe will be right
at the end. But you got to remember there are
largest trading partners. For the fact that they come at
the very end makes some sense. It's deep, it's complex,
but I'm kind of optimistic now. I wasn't optimistic three
weeks ago, but now since the President got involved, I'm
pretty optimistic.
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