Wall Street Elite Warm Up to Tariffs; Trump-Carney Meeting

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, let's begin this morning with the latest from the
Milken Institute Global Conference in Beverly Hills. Financial leaders gathering
at the annual event may be warming to the idea
of tariffs, but there's a catch. As we hear from
Bloomberg's John Tucker. Good morning, John, Good.
Morning, Nathan. The industry titans say they can live with
tariffs and a reworking of trade. Just get it settled soon.
Kk ARE co founder Kenry Kravis tells Bloomberg corporate leaders
right now aren't sure what to expect.
You need certainty. Is the table going to be round,
is a table going to be squared? Whatever is, But
leave it at that and then we can operate accordingly.
The unfortunate thing it's been changing, and it constantly change.
Mark rowan CEO and co founder of Apollo Global Managements,
is the longer there's goes on, the more damage is done.
Uncertainty will eventually resolve itself longer term. The way we've
done this, we have done damage to the US.
Brand Robin Grew, CEO of Man Group, is certain of
at least one thing from the tariffs.
I think that volatility is going to be here at
some time.
The milk and elites say it would be also helpful
if the Trump administration, which has said it's deeply engaged
in talks with a slew of major trading partners, would
announce at least a few deals and give business leaders
a sense of what the future holds. Again, they want
some degree of certainty. I'm John Tucker, Bloomberg Radio.
Okay, John, thank you, and stay with Bloomberg with for
the biggest names and most important conversations. Are going to
be bringing them to you live from Milkin all day long,
broadcasting live with a special edition of Bloomberg Business Week
Daily starting at two pm Wall Street Time on Bloomberg Radio,
Bloomberg Television, and the Bloomberg Podcasts page on YouTube.
Nathan, Canada's Prime Minister, will meet with President Trump at
the White House today. It'll be the first face to
face meetings since Mark Kearney won election in part because
of his anti Trump message. Bloomberg's Amy Morris has a
preview of today's meeting in Washington.
Carney and Trump are expected to discuss trade issues and
a broader relationship between Canada and the US, but when
he was asked about the meeting, Trump told reporters in
the Oval Office, he's.
Coming to see me. I'm not sure what he wants
to see me about, but I guess he wants to.
Make a deal.
Everybody does, because we have something that they all want.
The meeting comes after a trade war between the two countries,
the US placing tariffs on Canadian products, Canada retaliating with
its own tariffs on US goods. Carney has promised to
protect Canadian sovereignty and strengthen trading relationships in Europe and Asia,
saying that the old economic and security relationship with the
US is quote over in Washington, I'm Amy Moore, as
Bloomberg Radio.
Amy, thank you. The Trump administration is now offering an
incentive in its effort to ramp up mass deportations. The
Department of Homeland Securities offering one thousand dollars plus travel
costs to undocumented migrants who leave the US voluntarily using
the CBP home app. This follows an ad campaign that
began earlier this year featuring Homeland Security Secretary Christy Nome.
Let me be clear, if you come to our country
and you break our laws, we will hunt you down.
Criminals are not welcome in the United States.
DHS says the payouts will cut deportation costs by about
seventy percent. The agency says the current process of arrests, detentions,
and removals costs about seventeen thousand dollars per person. Under
former President Joe Biden, the CBP Home app was used
to schedule asylum interviews Nathan.
The Trump administration is ramping up its fight with Harvard University.
The Ivy League institution has been declared ineligible for new
federal research grants. According to a letter from Education Secretary
Linda McMahon. The move will remain in effect for Harvard
until quote they demonstrate responsible management. Pershing Square founder and
Harvard alum Bill Ackman has been critical of his alma
mater and its chair, Penny Pritsker.
At some point, you have to account a bil for
what's gone on at Harvard, and I've not seen any
accountability at the governance level. The notion that she's still
sharing the Harvard board and leading the charge here, I
think is a big negative billionaire.
Bill Ackman spoke to Bloomberg from the milk In conference
in Beverly Hills. A Harvard spokesman says McMahon's letter amounts
to retaliation for the university's lawsuit against the administration over
more than two billion dollars in frozen research funds and Karin.
The Trump administration is looking to thin the ranks at
the highest levels of the military. Defense Secretary Pete Hegseth
is ordering a twenty percent reduction to four star general
and admiral positions, another twenty percent cut to officers in
the National Guard, and at least ten percent cuts to
all generals and admirals. Heg Seth called it the less generals,
more gis policy in a social media post.
Now, this is not a slash and burn exercise meant
to punish high ranking officers. Nothing could be further from
the truth. This has been a deliberative process, working with
the Joint chiefs of Staff with one goal maximizing strategic
readiness and operational effectiveness by making prudent reductions in the
general and flag officer ranks.
Defense Secretary Pete haig Seth's reductions could be challenged in Congress.
Lawmakers have to approve any changes to military command Nathan.
In Europe, Frederick Mertz has suffered a setback and has
been to become the next German chancellor. The Conservative leader
fell short of a majority in an initial vote in
the lower house of Parliament. The failure to secure a
majority and what was expected to be a rubber stamp vote,
delays his swearing in as head of government. Bloomberg's Oliver
Crook is in Berlin and says it's an embarrassing setback
for the Conservative leader.
This was supposed to be kind of a rubber staff
day where Frederick Bard's, a CDU leader, was going to
be ushered in as the next Chancellor of Germany. It
is now encountered a stumbling block at the very first
step of this process. Frankly, right now, I think everyone
is scrambling to figure out exactly why that was the case.
Bloomer's Oliver Crook says it's the first time since World
War Two that an incoming chancellor failed to get parliamentary
backing the first round of voting and breaking across the
Bloomberg moments ago. German leaders will not vote again today
on Mertzus Chancellor.
Turning back to markets now. Karen futures are lower a
day after the S and P five hundred saw its
nine day winning streak snapped. Best performing stock in the
index so far this year, is helping to lead the
losses this morning's shares of Palenteer down nearly eight percent.
The company did raise its revenue forecast for the full
year on strong demand for its artificial intelligence software products.
Palenteer's growth was strong in the US, but tepit enthusiasm
in the rest of the world, which constitutes less than
a third of Palenteer's business, was enough to concern some analysts.
Shares a Forarder down two point six percent. Nathan the
automaker is spending its full year financial guidance. Ford says
President Trump's auto tariffs are reduced twenty twenty five adjusted
earnings before interest in taxes by about one and a
half billion dollars on a net basis this year. CEO
Jim Farley spoke on the earnings call.
It's still too early to fully understand or competitors' responses
to these tariffs. It's also early to gauge the related
market dynamics, including the potential industry wide supply chain disruptions
and the impact of Ford's domestic manufacturing advantages, and as
a result, we decided to suspend our guidance and.
For CEO Jim Farley's as the company's total tariff impact
is about two and a half billion dollars, one billion
of which is expected to be offset through actions such
as using bonded transportation to shield parts from levies.
Hey, Karen, We've got some deal news this morning. This
one's official door Dash has agreed to buy UK based
food delivery platform Delivery for a price tag of three
point nine billion dollars. DoorDash controls two thirds of the
restaurant delivery market in the US. It says this acquisition
will expand that reach to more than forty countries.
And it's time now for look at some of the
other stories making news in New York and around the world.
And for that we're joined by Bloombers Michael Barr. Michael,
good morning, Good morning, Karen.
The nation's aviation problems are the center of concern following
the troubles at Newark Airport following a radar system fail
to your last week. Newark's air traffic controllers are refusing
to come into work, calling it a traumatic event, a
contract clause to call out. The screens went black for
about ninety seconds three forty three.
I'm going to move you here because I just got
told it to approach loss all the radars. Three of
the four radar screens went block, and they have twenty
three forty three whoeveryone else is on frequency. I guess
this is a serious issue because I have one more
arrival and now I have nobody.
Else coming in back, Senator Chuck Schumer, we have ATC
folks giving warnings. We have a nineteen ninety technology being
used in twenty twenty five, and we have safety issues,
plain and simple.
The Union has been trying to bring attention for years
of dealing with staff shortages and out of date technology.
The track and racketeering trial of rap mogul Sean Diddy
Coombs began in New York City with a jury selection.
Jurors are filling out written questionnaires stating there may be
graphic and sexually explicit evidence in connection with the case.
Out today. US News and World reports Best States rankings
for twenty twenty five. The list looks at dozens of
metrics across categories like education led by New Jersey and
healthcare led by Hawaii, while overall Utah takes the lead
for the third year in a row. Senior Data editor
Jacqueline Jeffrey Wollnski, the.
First is Utah, the second is New Hampshire, the third
is Idaho, and then rounding out that top five, we've
got Minnesota and Nebraska, so a lot of Midwest representation.
Massachusetts ranked ninth, Connecticut fifteenth, New Jersey nineteenth, New York
ranked twenty second. Global News twenty four hours a day
and whenever you want it with Bloomberg News Now Michael Barr,
and this is Bloomberg Karen.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update. Here's John Stashower. John, good morning, Good.
Morning, Karon. The Knicks keep pulling out playoff games on
the road, three times in Detroit. In Game one in
Boston against the defending NBA champs, who the Knicks couldn't
beat in the regular season, they trailed by twenty in
the third quarter, but some more Jalen Brunson heroics in
the fourth. He made three three pointers in a two
and a half and it stretched, though Brunson missed an
easier shot that would have won the game in regulation.
It then went to overtime. Holiday is all over punching,
poor fit to watch hard two and a half.
In overtime, it goes to.
An Andobi tatamisl in the corner Pinchers times it's a
six point New York cleaning over.
Time dn Ta to call. Nick stunned the Celtics one
O eight one oh five runs and scored twenty nine points.
So did o g Onanobi. The Celtics took sixty three pointers,
made only fifteen of them. Game twos tomorrow, that's also
come back and an upset at Oklahoma City. Denver won
Game one one twenty one one nineteen on an Aaron
Gordon three with two seconds left for Narkolo. Jok had
forty two points twenty two rebounds. Stanley Cup ploffs in Toronto,
maple Lea's one game one with Florida five to four.
The Islanders won the draft lottery despite having just a
three and a half percent chance at stadium. The Padres
won their six in a row, beat the Yankees four
to three, story in all four in the eighth Inny
of Arizona, two run homer for Pete Alonzo, three runs
shot for Francisco Lindor Mets won five to four. The
Baltimore Ravens released Justin Tucker, the most accurate kicker in
NFL history, but he missed ten kicks last season and
accused by sixteen women of inappropriate behavior. Johns Stashewer, Bloomberg
Sports Karen 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, turning to a conversation with City CEO
Jane Fraser, speaking with Bloomberg Shanali Bassic from the Milk
Institute Global Conference in Beverly Hills. They talked about the economy,
the FED, the outlook for small to mid sized businesses.
Let's listen in.
We're in a world where the difference between the hard
data and the soft data is the greatest I've ever seen,
and it's very hard for all of us to understand
to get our arms around this and what does it mean?
And I think we just got to recognize that this
will take some time to play out. On the one hand,
we've got investors who had quite the round trip in
the last few weeks. But when we look at our
corporate clients or our consumer clients, sentiment is weaker, but
spending is strong. With the consumer still it's holding up.
Some of that is the pull forward of spending the
same from corporates ahead of tariffs. But we're keeping a
very close eye on what will happen with unemployment, what's
going to happen with inflation. Obviously, what's going to happen
with the actual tariffs will be the ten percent, will
they be twenty five percent, will they be more? That
uncertainty will get clarified. We will know more, We'll know
more about the tax field, we'll know more about deregulation.
If it's going to take some time for the heart
and soft data to converge, and that we know which
scenario we should be acting upon.
Well, to that end, you said earlier that a lot
of your clients are in this weight and see more so,
what is your advice bring us into the board rooms?
What are they waiting to see and what is your message.
So with clients as a couple of things that are
going on. One more tac degree, which is preparing for headwinds.
And remember we're serving multinational clients and multinational institutions and
governments around the world, so they are strengthening balance sheets.
If they feel the need to take advantage of that,
they're pulling forward inventry. They're causing some of their investments
spend cathechs. There's still activity, but there's definitely the weight
and see and preparate show. Then you have all the
work that is going on where we're having heavy client
engagement on how should I be rethinking about my supply chains,
what should I be thinking about my hedging and financing?
And then on the top level, what does it mean
from the strategic advice. So the level of engagement everywhere
around the world is absolutely tremendous. It's about scenarios right now,
it will turn into action further down the year.
What kind of risk is there to mainstream if these
trade negotiations aren't sorted out?
Dast I think it's not just the trade. We want
to see the trade. We want to see the tax
bill and what that will be. And then also deregulation
because as secondary Vestent has pointed out deregulation has really
impeded main street as well. We've seen it as above three.
The concern as a large bank was around what does
it mean for the consumer? What did it mean for farmers?
What do it mean for small businesses? Because they have
rode a trickle down impact of too much regulation. So
some of that undoing of things that have been overdone
is very important for mainstream because they don't have the
same flexibility and diversity a business model that the larger corporates.
Do, but don't they have neuro term problems like inflation
that would be on the eels of a lot of
these tariff talks, and access to capital being different than
those larger firms have.
As I talked about, I do think the small businesses
and those involved in sectors affected by the PRIC increases,
by the terriffs, by supply chain disruptions, just because the
magnitude of changes that could be coming will have an
impact on them, and that's I think where some of
the disruption and the pain from this will be felt. First,
do you agree.
With President Trump that the FED should cut into strates
or do you believe that it would be imported to
do it at this time when inflation expectations are higher.
It's very hard for the FED right now because of
this disconnect between hard data and soft data, and the
hard data holding up well, the sentiment data is clearly impacted,
and until there is more clarity, it will be hard
to know. If it's a ten percent tariff easier to absorb.
If it's twenty five percent or higher, then that will
have more material ramifications. So getting clarity on the trade
deals and agreements that will come through, we'll know more
about taxes. In the summer. We're starting to see some
of the benefits of deregulation occurring. All of this will
play in, but right now the Fed's in a tough spot.
This is Bloomberg Daybreak, your morning podcast and the stories
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