Trump's Tariff Plans Roil Markets; Walmart Cuts Diversity Programs

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:09.720 --> 0:00:10.280 Good morning. 0:00:10.280 --> 0:00:13.119 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:13.160 --> 0:00:14.640 stories we're following today. 0:00:14.800 --> 0:00:17.840 Karen, we begin with a political move that is roiling 0:00:17.880 --> 0:00:20.520 markets this morning. President like Donald Trump has made his 0:00:20.560 --> 0:00:24.720 first specific threat to curb global trade flows since his 0:00:24.840 --> 0:00:28.560 election win. We get the details from Bloomberg's Doug Prisner. 0:00:29.120 --> 0:00:31.720 In a post on Truth Social Trump said the US 0:00:31.800 --> 0:00:35.320 will impose an additional ten percent tariff on Chinese goods 0:00:35.600 --> 0:00:38.519 on top of all existing levies beginning his first day 0:00:38.560 --> 0:00:41.720 in office, and in a separate post, the president elect 0:00:41.800 --> 0:00:44.440 said he will impose a twenty five percent tariff on 0:00:44.600 --> 0:00:47.800 all goods from Canada and Mexico. Trump framed these new 0:00:47.840 --> 0:00:51.280 levies as necessary to clamp down on migrants and illegal 0:00:51.360 --> 0:00:55.120 drugs flowing across borders, and the announcement came just after 0:00:55.160 --> 0:00:58.600 Trump tapped Scott Besson to be the next US Treasury Secretary. 0:00:59.040 --> 0:01:01.320 His selection was viewed is a sign of a more 0:01:01.400 --> 0:01:04.600 measured stance on tariffs in New York. I'm Doug Prisoner, 0:01:04.640 --> 0:01:05.440 Bloomberg Radio. 0:01:05.600 --> 0:01:07.760 All Right, Doug, thanks, well, there's plenty of reaction this 0:01:07.920 --> 0:01:11.640 morning to Trump's tariff plans. Jennifer Hillman is the former 0:01:11.760 --> 0:01:15.080 General Counsel at the Office of the US Trade Representative. 0:01:15.400 --> 0:01:17.600 I think again, you can expect this to be very, 0:01:17.720 --> 0:01:20.280 very transactional, and I think that's part of the reason 0:01:20.360 --> 0:01:23.200 for announcing it well before he's even in office. I mean, 0:01:23.200 --> 0:01:26.680 he is clearly looking for and I would say, you know, 0:01:26.800 --> 0:01:29.880 Canada and Mexico to come to him with offers of 0:01:29.959 --> 0:01:30.880 things that they can do. 0:01:31.319 --> 0:01:34.319 Former General Counsel at the Office of the United States 0:01:34.319 --> 0:01:38.120 Trade Representative Jennifer Hillman made the comments on Bloomberg Insights 0:01:38.120 --> 0:01:39.839 with has Linda amin Well Caring. 0:01:39.880 --> 0:01:43.160 The dollar rallied and Asian stocks fell as Trump's comments 0:01:43.240 --> 0:01:46.919 ratcheted up concerns about his America First policies. This morning, 0:01:46.920 --> 0:01:49.680 a China Foreign Ministry spokesperson was asked whether there are 0:01:49.680 --> 0:01:52.400 any plans for talks before Trump takes office. 0:01:53.320 --> 0:01:57.120 Information to offer at this moment, but shall we remain 0:01:57.240 --> 0:02:00.920 open to gallog and communication in principle. 0:02:01.200 --> 0:02:04.280 China's Foreign Ministry, reacting to Trump's comments, the offshore you 0:02:04.400 --> 0:02:07.160 on week into a four month low. The Mexican peso 0:02:07.320 --> 0:02:10.600 and Canadian dollar both tumbled more than one percent. 0:02:10.639 --> 0:02:14.120 And Nathan Bloomberg News has learned shortly after Trump's post, 0:02:14.160 --> 0:02:18.040 Canadian Prime Minister Justin Trudeau contacted the President elect and 0:02:18.040 --> 0:02:20.480 the two leaders had a phone call to discuss border 0:02:20.520 --> 0:02:24.040 security and trade. Sources a Trudeau pointed out to Trump 0:02:24.080 --> 0:02:26.760 that the number of migrants who crossed the Canadian border 0:02:26.760 --> 0:02:30.040 into the US is minuscule compared to those who crossed 0:02:30.040 --> 0:02:31.600 from Mexico, well cairing. 0:02:31.600 --> 0:02:33.880 The other major news coming out of Washington this morning 0:02:33.919 --> 0:02:36.480 is from the Justice Department. Federal prosecutors have moved to 0:02:36.520 --> 0:02:39.720 drop their two criminal cases against President elect Trump because 0:02:39.760 --> 0:02:43.079 he won the race. Bloomberg's Amy Morris reports from Washington. 0:02:43.560 --> 0:02:46.480 In the court filing, special counsel Jack Smith says the 0:02:46.600 --> 0:02:50.200 Justice Department policy requires him to abandon the case. Smith 0:02:50.280 --> 0:02:53.120 was working to hold Trump criminally accountable for efforts to 0:02:53.160 --> 0:02:56.880 subvert the twenty twenty election and mishandling of classified documents. 0:02:57.040 --> 0:02:59.640 Smith's team also emphasized that the move to abandon their 0:02:59.639 --> 0:03:02.360 pross USANs was not a reflection of the merits of 0:03:02.360 --> 0:03:05.160 the cases, but a recognition of the legal shield that 0:03:05.200 --> 0:03:08.200 surrounds any commander in chief. The team says it will 0:03:08.240 --> 0:03:11.480 continue to pursue cases against co defendants in the classified 0:03:11.520 --> 0:03:14.000 documents case. What is not clear is the fate of 0:03:14.040 --> 0:03:17.880 the state criminal cases still pending against Trump in Washington, 0:03:17.880 --> 0:03:19.520 Amy Moore as Bloomberg Radio. 0:03:19.520 --> 0:03:21.440 All right, Amy, thank you now to the latest from 0:03:21.480 --> 0:03:24.000 the Middle East. And Israel and Hezbola may be getting 0:03:24.040 --> 0:03:26.840 closer to a size fire deal, even as both sides 0:03:26.919 --> 0:03:30.880 keep firing rockets and artillery at each other. Bloomberg'sdayna Chris 0:03:30.960 --> 0:03:34.600 reports Israel's security cabinet is expected to vote an agreement today. 0:03:35.000 --> 0:03:38.960 This has come almost two months after negotiations have started. 0:03:39.360 --> 0:03:41.200 We were here about a month and a half ago 0:03:42.040 --> 0:03:47.080 in October when Israel agreed to a US and France 0:03:47.560 --> 0:03:51.400 proposal for ceasfire agreement, and then we saw Israel not 0:03:51.640 --> 0:03:55.440 backing this deal. So there could be some sort of 0:03:56.120 --> 0:03:59.000 backing out of the deal by Israel. There is some 0:03:59.240 --> 0:04:02.680 opposition among Israeli officials to that deal. 0:04:03.200 --> 0:04:06.400 But if the deal passes, Bloomberg's Innacraser ports the US 0:04:06.480 --> 0:04:09.840 and France could announce it immediately. The latest proposal calls 0:04:09.880 --> 0:04:12.920 for a sixty day ceasefire where hez Below fighters had 0:04:13.000 --> 0:04:16.000 moved north of the tiny river, about nineteen miles from 0:04:16.000 --> 0:04:19.200 the Israeli border. Israel would reserve the right to respond 0:04:19.279 --> 0:04:22.000 if it sees hes below breaking the agreement. That part 0:04:22.040 --> 0:04:24.400 of the deal has gotten significant pushback well. 0:04:24.440 --> 0:04:26.480 Turning back to markets now, Karen, As we mentioned, the 0:04:26.520 --> 0:04:30.520 dollar has been strengthening following Trump's latest tariff comments. Futures 0:04:30.600 --> 0:04:34.039 have turned higher as well. Stocks gained yesterday, fueled by 0:04:34.080 --> 0:04:37.560 the nomination of Scott Bessen to be of Trump's Treasury Secretary. 0:04:37.880 --> 0:04:41.560 Laurie Calvacina' head of US equity strategy at RBC Capital Markets, 0:04:41.640 --> 0:04:44.640 remains bullas she has a sixty six hundred price target 0:04:44.720 --> 0:04:46.240 for the SMP five hundred next year. 0:04:46.640 --> 0:04:49.880 The sixty six hundred is the approximate median of those 0:04:50.000 --> 0:04:52.880 five different models than the outputs that they produced. There 0:04:52.960 --> 0:04:55.200 is a little bit of a range. At the low end, 0:04:55.279 --> 0:04:58.320 our valuation model, which also incorporates our earning testament, is 0:04:58.360 --> 0:05:00.920 getting this number a little bit below sixty two hundred 0:05:01.080 --> 0:05:03.120 or a pe at the end of next year on 0:05:03.200 --> 0:05:05.280 a trailing basis that would be about twenty two point 0:05:05.360 --> 0:05:08.839 seven times. On the high end, our cross asset model 0:05:09.000 --> 0:05:11.280 is pointing to a twelve point seven percent return on 0:05:11.279 --> 0:05:13.599 the year, which gets us well above sixty seven hundred, 0:05:13.640 --> 0:05:15.520 So there's a little bit of a range there, but 0:05:15.640 --> 0:05:18.160 that's sixty six hundred we think is a really reasonable 0:05:18.200 --> 0:05:19.840 base case to focus on at this point. 0:05:20.080 --> 0:05:23.640 RBC Capital Zori Calvicinas price target of sixty six hundred 0:05:23.680 --> 0:05:25.600 would be about a ten percent gain for the S 0:05:25.680 --> 0:05:27.520 and P five hundred from current levels. 0:05:28.000 --> 0:05:30.400 Well, we turn to the economy now. Nathan in Minneapolis 0:05:30.440 --> 0:05:32.920 Fed President Neil cash Care retails Bloomberg that it is 0:05:33.000 --> 0:05:35.800 still appropriate to consider another interest rate cut at the 0:05:35.839 --> 0:05:37.320 Central Banks December meeting. 0:05:37.760 --> 0:05:40.240 This is what I'm trying to understand right now is 0:05:40.360 --> 0:05:42.680 how much downward pressure are we putting on the economy 0:05:43.000 --> 0:05:45.160 and what is the path for inflation. But right now, 0:05:45.320 --> 0:05:48.560 knowing what I know today, you know still considering a 0:05:48.640 --> 0:05:51.760 twenty five basis point cut in December. It's a reasonable 0:05:51.839 --> 0:05:52.560 debate for us. 0:05:52.560 --> 0:05:56.080 To have Minneapolis Fed President Neil Cashcar and officials or 0:05:56.120 --> 0:05:58.760 receive more data both on inflation and the labor market 0:05:58.839 --> 0:06:01.320 before their December meet up. The latest update on the 0:06:01.360 --> 0:06:03.920 FEDS preferred to price gauges will be released tomorrow. 0:06:04.320 --> 0:06:07.640 In Company News, Karen Walmart is the latest business reversing 0:06:07.760 --> 0:06:11.279 course on diversity, equity and inclusion initiatives. The world's biggest 0:06:11.320 --> 0:06:14.119 retailer will no longer consider race and gender to boost 0:06:14.160 --> 0:06:17.919 diversity when granting supplier contracts, and will stop collecting demographic 0:06:18.000 --> 0:06:21.760 data when assessing financing eligibility. Walmart joins at least ten 0:06:21.839 --> 0:06:24.000 other companies, from Deer to Boeing that have pulled back 0:06:24.040 --> 0:06:27.360 on DEI commitments in recent months as Corporate America reconsiders 0:06:27.400 --> 0:06:30.360 diversity policies in the wake of last year's Supreme Court 0:06:30.480 --> 0:06:33.520 ruling banning affirmative action in college admissions, and. 0:06:33.640 --> 0:06:36.480 Nathan and Biden administration has finalized a deal to give 0:06:36.560 --> 0:06:39.919 Intel nearly seven point nine billion dollars in federal grants. 0:06:40.279 --> 0:06:43.440 That's the largest direct subsidy from a program to boost 0:06:43.480 --> 0:06:47.480 domestic semiconductor manufacturing. The agreement for the struggling chip maker, 0:06:47.640 --> 0:06:51.040 smaller than an earlier proposed award, means that Intel can 0:06:51.120 --> 0:06:55.640 begin receiving funds at it hits negotiated benchmarks on projects 0:06:55.720 --> 0:06:58.839 in four US states. In another development, Bloomberg News has 0:06:58.920 --> 0:07:02.880 learned Qualcom's int in pursuing an acquisition of Intel has cooled, 0:07:03.320 --> 0:07:06.480 and Intel shares they are down about one in a 0:07:06.560 --> 0:07:12.360 third percent this morning time. Now for a look at 0:07:12.400 --> 0:07:14.120 some of the other stories making news in New York 0:07:14.160 --> 0:07:15.800 and around the world. And from that we're joined by 0:07:15.840 --> 0:07:18.360 Bloomberg's John Tucker, John, Good Morning, Yeah, Good morning. 0:07:18.400 --> 0:07:22.440 Karen. The prosecutor oversees Wall Street stepping down. Manhattan US 0:07:22.480 --> 0:07:27.040 Attorney Damian Williams will resigned December thirteenth after three years. 0:07:27.360 --> 0:07:29.320 Let's get more from Bloomberg's Charlie Pellet. 0:07:29.880 --> 0:07:32.760 It comes as the leadership of the office known as 0:07:32.960 --> 0:07:37.640 the Sheriff of Wall Street transitions to Donald Trump's new administration. 0:07:38.240 --> 0:07:41.080 The forty four year old Williams has announced he plans 0:07:41.200 --> 0:07:45.440 to step down. Deputy US Attorney Edward Kim will temporarily 0:07:45.520 --> 0:07:49.600 step into the top job after Williams leaves. Trump announced 0:07:49.640 --> 0:07:52.640 earlier this month that he will be nominating former SEC 0:07:52.840 --> 0:07:56.040 Chair Jay Clayton to lead the office in New York. 0:07:56.200 --> 0:07:58.000 Charlie Pellett, Bloomberg Radio. 0:07:58.160 --> 0:08:01.480 Fifty thousand flights are set to take off nationwide today, 0:08:01.560 --> 0:08:04.520 the most of this busy holiday week for drivers. This 0:08:04.720 --> 0:08:08.200 Thanksgiving holiday triple ass more than seventy million are sent 0:08:08.280 --> 0:08:11.360 to hit the roads today. The good News gasoline prizes 0:08:11.520 --> 0:08:14.960 nationwide are at their lowest levels since twenty twenty one 0:08:15.520 --> 0:08:18.720 Republican lawmakers. They're calling on the Biden administration to preserve 0:08:18.800 --> 0:08:22.040 documents related to the proposed sale of US deal to 0:08:22.200 --> 0:08:27.000 japan based Nippon Steal. They're expressing serious concerns that politics 0:08:27.080 --> 0:08:30.400 have tainted an ongoing national security review of the deal 0:08:30.760 --> 0:08:34.640 and raising the prospect of a congressional probe. And brothers 0:08:34.880 --> 0:08:37.720 Eric and Lyle Menendez were hoping for a December hearing 0:08:37.880 --> 0:08:40.800 to plead for their release after serving thirty five years 0:08:40.880 --> 0:08:43.480 for the nineteen eighty nine murders of their parents. Now 0:08:43.559 --> 0:08:46.920 the next hearing in Los Angeles is scheduled for late January, 0:08:47.200 --> 0:08:49.440 so it could be many months before the brothers could 0:08:49.520 --> 0:08:53.280 be released. And the Macy's Thanksgiving Day Parade, a tradition 0:08:53.600 --> 0:08:56.319 that started a century ago, it remains one of the 0:08:56.360 --> 0:08:59.120 few spectacles that still draws on a big audience to 0:08:59.240 --> 0:09:02.800 broadcast teas. Now, according to the Wall Street Journal, airing 0:09:02.880 --> 0:09:05.000 it is going to get a lot more expensive. The 0:09:05.080 --> 0:09:08.360 paper says NBC, which has had the broadcast right since 0:09:08.480 --> 0:09:11.840 nineteen fifty three, is trying to hammer down a new 0:09:11.960 --> 0:09:14.920 deal with Macy's to keep the events on the network. 0:09:15.280 --> 0:09:17.200 A new deal would kick in next year. With an 0:09:17.240 --> 0:09:20.719 average annual fee of more than sixty million dollars for 0:09:20.840 --> 0:09:24.360 around twenty million dollars in the current contract. Global News 0:09:24.440 --> 0:09:26.079 twenty four hours a day, whenever you want it with 0:09:26.160 --> 0:09:29.400 Bloomberg News Now. I'm John Tucker. This is Bloomberg. Karen. 0:09:29.920 --> 0:09:36.600 All right, John, thank you. Time now with the Bloomberg 0:09:36.640 --> 0:09:39.000 Spores update, Bronty. If I try state and OUTI here's 0:09:39.040 --> 0:09:40.760 John Stanshawer, John, Good morning. 0:09:40.600 --> 0:09:42.920 Good morning, Karen. The rare night when all five New 0:09:43.000 --> 0:09:45.800 York NBA and NHL teams were inaction, the hockey teams 0:09:45.840 --> 0:09:47.160 at home, the hoop teams. 0:09:46.920 --> 0:09:47.400 On the road. 0:09:47.440 --> 0:09:49.960 They both had impressive victories. The Knicks were in Denver. 0:09:50.440 --> 0:09:52.679 They are coming off a loss at Lowly Utah. With 0:09:52.720 --> 0:09:54.880 the Knicks against the Nuggets put on a show with 0:09:55.080 --> 0:09:58.839 sixty one percent shooting forty five assists, which ties the 0:09:58.880 --> 0:10:01.760 club record. The Nicks one going away one forty five 0:10:01.840 --> 0:10:04.720 to one eighteen for Ogiananobi, known more for his defense, 0:10:05.000 --> 0:10:08.120 a career high forty points. Karl Anthony Town scored thirty. 0:10:08.240 --> 0:10:11.280 Jalen Brunson had seventeen of those assists. Nets got thirty 0:10:11.320 --> 0:10:13.600 one from Dennis Shrewder. Beat the Warriors one twenty eight 0:10:13.640 --> 0:10:16.079 to one twenty at the Garden Saint Louis Blues the 0:10:16.160 --> 0:10:18.440 day after making a coaching change, won the third period 0:10:18.520 --> 0:10:20.480 three nothing beat the Rangers five to two, just as 0:10:20.520 --> 0:10:23.760 the Devils one five to two in Newark over Nashville. 0:10:23.840 --> 0:10:26.520 First career hat trick for Nico Heastiere, it was the 0:10:26.640 --> 0:10:28.920 natural hat trick. All three came in the second period. 0:10:28.960 --> 0:10:31.760 The Islanders at Ubs lost to Detroit four to two 0:10:31.840 --> 0:10:34.240 in La the Battle of the Harbod Brothers, and like 0:10:34.320 --> 0:10:37.560 the Super Bowl twelve years ago, johns Ravens one beat 0:10:37.640 --> 0:10:40.679 Jim who now coaches the Chargers, thirty to twenty three. 0:10:40.840 --> 0:10:43.560 Lamar Jackson two touchdown passes, another on the ground Derrick 0:10:43.600 --> 0:10:46.720 Henry one hundred and forty rushing yards. After the Giants 0:10:46.840 --> 0:10:49.480 Laiden egg Sunday and a lopsided loss at Tampa Bay, 0:10:49.760 --> 0:10:52.800 couple of Giants like Dexter Lawrence and rookie Melik Neighbors 0:10:52.840 --> 0:10:57.800 both called the Giants soft. Coach Brian Daboll reacted yesterday, I. 0:10:57.880 --> 0:10:59.880 Thought our guys played hard, go back in the value 0:11:00.080 --> 0:11:02.679 at the tape. There was certain plays that you want back, 0:11:02.880 --> 0:11:04.640 you know. We talked about some of the mistackles that 0:11:04.720 --> 0:11:08.040 happened offensively, some of the negative plays, particularly in the 0:11:08.120 --> 0:11:10.480 first half, and we had seventeen plays and you know 0:11:10.600 --> 0:11:12.560 that created some third longs that we didn't pick up, 0:11:12.800 --> 0:11:15.680 didn't control the time of possession. But the guys played hard, 0:11:15.720 --> 0:11:17.839 they play with effort, just didn't do enough. 0:11:18.040 --> 0:11:20.839 Meanwhile, Daniel Jones now officially an ex Giant and a 0:11:20.920 --> 0:11:24.000 free agent, having cleared waivers, College oaps and Maui second 0:11:24.080 --> 0:11:27.840 rank Yukon upset and overtime by Memphis ninety nine ninety seven. 0:11:27.880 --> 0:11:30.839 The Huskies came in with a record during twenty twenty 0:11:30.920 --> 0:11:33.920 four of thirty one and one. John stashed We're Bloomberg 0:11:33.960 --> 0:11:34.920 Sports Candy Mean. 0:11:37.200 --> 0:11:41.240 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:41.440 --> 0:11:44.280 and around the world on Bloomberg dot Com and the 0:11:44.400 --> 0:11:47.679 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:47.880 --> 0:11:50.720 Good morning, I'm Nathan Hager. President to like Donald Trump 0:11:50.760 --> 0:11:53.160 has given markets a jolt with his threat to boost 0:11:53.240 --> 0:11:56.400 tariffs on Chinese imports by ten percent and twenty five 0:11:56.559 --> 0:11:59.280 percent for goods from Canada and Mexico, and an effort 0:11:59.320 --> 0:12:02.960 to stop I League immigration and Fentanel trafficking. Michael Stroback 0:12:03.040 --> 0:12:05.160 is chief investment officer at lombard Odia. 0:12:05.679 --> 0:12:09.520 Tariffs are messing up with the terms of trades of 0:12:09.559 --> 0:12:13.280 countries in ways that firms are not prepared for long 0:12:13.360 --> 0:12:16.679 term short term. Therefore you're on the losing end if 0:12:16.720 --> 0:12:17.760 you get hit by tariffs. 0:12:18.000 --> 0:12:20.640 That's Michael Stroback with lombard Odia. Joining us now is 0:12:20.720 --> 0:12:24.760 Lindsay Newman, geopolitical risk expert and calumnist for G zero Media. 0:12:24.960 --> 0:12:28.120 As we've watched the dollar strengthen and the currency is 0:12:28.160 --> 0:12:31.920 affected by these potential tariffs, we can on the news Lindsay, 0:12:32.080 --> 0:12:34.679 good morning. Should markets see this as a threat or 0:12:34.760 --> 0:12:36.079 a promise from the president? 0:12:36.160 --> 0:12:39.640 Delect morning, Nathan, Thanks for having me on. There should 0:12:39.679 --> 0:12:43.920 be very little that's surprising about Trump's overnight announcements. He 0:12:44.040 --> 0:12:46.720 has been telling us throughout the campaign that he planned 0:12:46.720 --> 0:12:50.000 to rely heavily on the lever of tariffs, particularly visa 0:12:50.080 --> 0:12:53.120 via China. And as I've been saying for years, when 0:12:53.160 --> 0:12:55.280 he lays out a policy platform, when he sells you 0:12:55.360 --> 0:12:59.079 his priorities believe him. So markets should be prepared for this, 0:12:59.559 --> 0:13:01.960 They should take it seriously. They now have two months 0:13:02.040 --> 0:13:05.559 before he actually steps into office to prepare. What I 0:13:05.640 --> 0:13:08.440 think is telling here, though, Nathan, is that he's decided 0:13:08.480 --> 0:13:10.480 not just to go after China, but also he's looking 0:13:10.760 --> 0:13:13.760 very closely in his neighborhood with Canada and Mexico. And 0:13:13.880 --> 0:13:16.559 this has to telegraph that no country is likely to 0:13:16.720 --> 0:13:20.840 be immune to Trump's scrutiny to his lens. It also 0:13:20.920 --> 0:13:22.880 has to be seen within the context of the upcoming 0:13:23.000 --> 0:13:25.959 USMCA trade agreement, which is going to be reviewed in 0:13:26.000 --> 0:13:26.720 twenty twenty six. 0:13:26.960 --> 0:13:28.760 Yeah, I wanted to ask you about how this could 0:13:28.800 --> 0:13:32.280 affect the USMC. I mean, during the President Elect's first term, 0:13:32.440 --> 0:13:36.760 he renegotiated NAFTA. I mean, how could a tariff threat 0:13:36.920 --> 0:13:41.280 like this fit in to the current trade agreement in 0:13:41.400 --> 0:13:42.080 North America. 0:13:43.440 --> 0:13:45.360 Yeah, he took the NAFTA, which he said was the 0:13:45.400 --> 0:13:49.760 worst trade deal, and then he renegotiated the USMCA trade deal, 0:13:49.800 --> 0:13:52.199 which he seemed pleased with at the time. You know, 0:13:52.840 --> 0:13:54.280 you hit the nail on the head here, though. This 0:13:54.440 --> 0:13:58.360 is really about a negotiation. These are really about negotiation tactics, right. 0:13:58.679 --> 0:14:01.000 You know, we have to always remember this is Trump's way. 0:14:01.080 --> 0:14:04.280 The fact that he himself has announced this news rather 0:14:04.360 --> 0:14:06.000 than relying on Scott Descent. 0:14:06.200 --> 0:14:08.240 His appointee to release this news. 0:14:08.840 --> 0:14:12.079 He's telling us on Thanksgiving week over his social media 0:14:12.160 --> 0:14:16.160 platform with various capitalizations. You can't distinguish between. We have 0:14:16.280 --> 0:14:19.400 to distinguish, I should say, between the noise and the signal. 0:14:19.480 --> 0:14:21.960 The noise is the style. The signal here is that 0:14:22.040 --> 0:14:24.680 he intends to go to pursue this and use it 0:14:24.720 --> 0:14:27.880 as a negotiating tactic, including for the USMCA trade deal, 0:14:28.480 --> 0:14:31.520 which they have to review and decide whether the US 0:14:31.680 --> 0:14:34.320 is going to look to unwind it. So that's going 0:14:34.400 --> 0:14:36.240 to be the end here to build in these sort 0:14:36.280 --> 0:14:39.560 of security provisions, the immigration provisions that are priorities for 0:14:39.680 --> 0:14:40.640 the Trump administration. 0:14:41.160 --> 0:14:44.280 Is there noise around this announcement when it comes to 0:14:44.640 --> 0:14:48.720 the progress that the Biden administration says it's made around 0:14:49.120 --> 0:14:52.960 illegal immigration as well as fentanyl trafficking, particularly. 0:14:52.560 --> 0:14:57.040 With China, there's absolutely noise here. But Trump has put 0:14:57.120 --> 0:14:59.640 this at the center of his platform. When we saw 0:14:59.720 --> 0:15:02.160 that he appointed Tom Holman to be Borders are when 0:15:02.200 --> 0:15:05.000 he's announced Stephen Miller as his deputy chief of staff. 0:15:05.280 --> 0:15:07.600 This is signaling that the Trump two point zero administration 0:15:07.840 --> 0:15:10.920 plans to move quickly on these issues. On immigration on Ventanyl, 0:15:11.400 --> 0:15:13.840 I fully expect him to have a host of executive 0:15:13.880 --> 0:15:16.720 actions in addition to the ones he's referenced overnight for 0:15:16.920 --> 0:15:19.840 his signature on day one. And look, Nathan, we saw, 0:15:19.920 --> 0:15:23.200 you know, Bloomberg reported that Prime Minister Justin Trudeau saw 0:15:23.280 --> 0:15:25.840 the post on True Social and called up Trump. So 0:15:25.960 --> 0:15:28.560 it's working. This is the intended outcome here. These are 0:15:28.880 --> 0:15:31.320 negotiating tactics. It's an opening salvo. 0:15:31.840 --> 0:15:35.840 So how can we expect China to negotiate, particularly given 0:15:35.920 --> 0:15:39.240 the current economic constraints at sunder got about thirty seconds left. 0:15:39.640 --> 0:15:41.840 Yeah, I mean, we've seen the response to the posts 0:15:41.840 --> 0:15:43.720 where that China says are not looking to enter into 0:15:43.960 --> 0:15:46.640 a full phone trade war, and we have to expect, 0:15:46.680 --> 0:15:48.480 you know, there should be more room for carveouts, for 0:15:48.520 --> 0:15:50.720 example for Canada and Mexico, as we saw during the 0:15:50.760 --> 0:15:55.440 Trump one administration. Absolutely in Trump two point zero, Trump 0:15:55.680 --> 0:16:00.200 plans to pursue China and extend what he pursued during 0:16:00.240 --> 0:16:02.280 Trump one point zero and also with the Biden administration 0:16:02.320 --> 0:16:03.840 carried out. We have to remember they did not roll 0:16:03.920 --> 0:16:06.160 back any of those Trump one point zero tariffs. 0:16:06.400 --> 0:16:09.840 This is Bloomberg Daybreak, your morning podcast on the stories 0:16:09.920 --> 0:16:12.880 making news from Wall Street to Washington and beyond. 0:16:13.200 --> 0:16:15.520 Look for us on your podcast feed by six am 0:16:15.600 --> 0:16:19.000 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:19.240 --> 0:16:22.080 You can also listen live each morning starting at five 0:16:22.120 --> 0:16:24.720 am Wall Street Time on Bloomberg eleven three to zero 0:16:24.840 --> 0:16:27.720 in New York, Bloomberg ninety nine to one in Washington, 0:16:27.800 --> 0:16:31.720 Bloomberg ninety two nine in Boston, and nationwide on serious 0:16:31.960 --> 0:16:33.480 XM Channel one twenty one. 0:16:33.920 --> 0:16:36.600 Plus listen coast to coast on the Bloomberg Business app 0:16:36.680 --> 0:16:39.400 now with Apple CarPlay and Android auto interfaces. 0:16:39.720 --> 0:16:42.720 And don't forget to subscribe to Bloomberg News Now. It's 0:16:42.760 --> 0:16:45.480 the latest news whenever you want it in five minutes 0:16:45.600 --> 0:16:48.640 or less. Search Bloomberg News Now and your favorite podcast 0:16:48.720 --> 0:16:52.760 platform to stay informed all day long. I'm Karen Moscow and. 0:16:52.840 --> 0:16:55.400 I'm Nathan Hager. Join us again tomorrow morning for all 0:16:55.440 --> 0:16:57.400 the news you need to start your day right here 0:16:57.600 --> 0:16:58.680 on Bloomberg Daybreak