President Trump Pushes Powell on Rates; Bessent Says China Talks Stalled

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Lisa Mattheo and I'm Karen Moscow. Here
are the stories we're following today.
Karen, we begin with the latest development in the global
trade war. President Trump's tariffs will remain in place for now.
That's after an appeals court temporarily paused a ruling that
had blocked them. Derek Wallbank is our senior editor for
US Economics and Government.
This is going to work through the US legal process
in the meantime, though it has kind of complicated the
idea that the Trump administration in this ninety day pause
window was going and trying to do deals with individual countries.
We really haven't seen a ton of deals come through
with that. We've had the UK, a lot of others
are said to be maybe close or near, but haven't
gotten over the line well.
Bloomberg's Derek Wallbank says that despite the temporary the possibility
does remain that the appeals court could ultimately back the
original ruling and block President Trump's tariff policy. However, White
House official stress President Trump has options to pursue similar
tariffs through other authorities if appeals ultimately fall short.
Meanwhile, Lisa, Treasury Secretary Scott Besson says trade talks which
China are currently at a bit of a standstill. Besson
says a call may be required between President Trump and
Chinese President Xi Jinping in order to reach a deal.
I would say that they are a bit stalled. I
believe that we will be having more talks with them
in the next few weeks, and I believe we may
at some point have a call between the President and
party chair she.
Treasury Secretary Scott Besson made the comments on Fox News.
President Trump had said he would speak to the Chinese
leader in the days after trade talks in mid May,
but that call has yet to materialize.
Careen tensions between the US and China may be growing
on another front. Reuter's is reporting President Trump is planning
to wrap up weapons sales to Taiwan to a level
exceeding the pay set during his first term. Reuter says
the new weapons packages are expected to focus on missiles, munitions,
and drones.
Lisa, the President met with fedhair J. Powell at the
White House for their first in person meeting since the inauguration.
The FED says the President invited Powell to discuss economic
developments for growth, employment, and inflation. White House Press Secretary
Caroline Levitt says Trump pushed Powell to lower interest rates.
The President did say that he believes the Fed chair
is making a mistake by not lowering interest rates, which
is putting us at an economic disadvantage to China in
other countries, and the President's been very vocal about that
both publicly and now I can reveal privately as well.
White House Press Secretary Caroline Levit says they did not
discuss whether Trump would seek to remove Powell from his role.
Powell's term as fedhare expires in May of next year.
Oh patident Trump will hold a news conference with Elon
Musk later today at the White House to mark Musk's
departure from DOGE. We get the latest from Bloomberg's John Tucker.
John and Lisa. The event gives an opportunity for the
President and his biggest campaign manufactor to dispel any notion
of an acrimonious divorce. In a post last night, President
Trump said this will be his last day, but not
really because he will always be with us helping all
the way. Elon is terrific In the past two weeks.
Musk has sworn off future political donations and also criticized
Trump's signature tax and spending cup proposal. The world's richest
man had already announced he was pulling back from the
so called Department of Government Efficiency in order to spend
more time running his various companies. His full exit comes
at a critical time for Tesla, which is set to
roll out full self driving cars and a robo taxi service.
La Mosca Vanda isn't the only thing on the President's schedule.
He's going to travel to US Steal today after announcing
a deal with Japan's Nippon Steal. On Tucker Bloomberg Radio.
All right, John, thank you about cash. President Trump and
Elon Musk comments live here on Bloomberg. Scheduled for one
thirty Wall Street time this afternoon on Bloomberg Radio, Bloomberg Television,
and the Bloomberg Podcast page on YouTube.
All right, we now turn to the latest developments in
the Middle East. Israel has accepted a USCAS fire proposal
for Gaza. It involves a sixty day pause in fighting
and restores you inlet a distribution to the enclave.
Now.
The proposal includes Hamas releasing ten live hostages and returning
the remains of eighteen who died in captivity, as well
as engaging in negotiations.
Toward a permanent end to the fighting. Hamas has criticized
the proposal as one sided and has not officially responded.
And to the markets now Lisa, where futures are lower
as we head into the last trading day of May,
Traders are trying to navigate growing uncertainty about tariffs that
are mired in legal battles. Rebecca Patterson, a former chief
investment strategist at Bridgewater Associates.
But the tariff level we settle at, I believe will
still be significantly higher than where we were at the
beginning of the year. To me, at the end of
the day, we're going to have volatility continuing, and I
think we still have a bias of risk that US
bond yields government bond yields are sticky or biased higher,
and that is going to be something that acts as
a cap on equity sentiment.
Former chief investment strategist at Bridgewater Associates, Rebecca Patterson also
says investors will be paying close attention to a key
economic report this morning. It's the personal Consumption Expenditures Price
Index excluding food and energy, the Fed's preferred gauge of
underlying inflation, and Bloomberg Surveillance will bring you the numbers
with context alive at eight thirty Wall Street time on
Bloomberg Radio and the Bloomberg Podcast page on YouTube.
All Right, checking some stocks on the move this morning.
Shares of GAP. They're down almost fifteen percent in early trading.
Revenue fell at it's Banana, Republic and Athletic chains. Gap
estimates an impact of two hundred and fifty million into
three hundred million dollars from tariffs if their level remains
at thirty percent for most goods from China and ten
percent for other countries.
Costco reported better than expected earnings in the third quarter. Lisa,
the nation's the largest club chain, is taking steps to
navigate tariffs, including rerooting goods, sourcing most more locally produced items,
and examining potential price changes on an item by item basis.
And shares are down about four tenths of a percent
this morning.
All Right, And we're seeing impending tariffs impacting the luxury
watch market watch enthusiasts. They snapped up Rolex and protect
the leap time pieces. In late April. The watch dealer
Subdial says volume was one hundred and sixty percent higher
than normal trading levels. The growth is particularly strong in
the US and the UK.
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 bar Michael,
good morning, Good.
Morning, Karen. The man who'd led the NYPD through the
deadliest domestic attack in US history, has as New York
City Police Commissioner. On nine to eleven, Bernard Carrick was
front and center. He spoke the next day, on September twelfth,
two thousand and one.
We want to get in there. We want to rescue
the people that are alive and well in there, but
we've also we have to do it safely, and we've
had an enormous problem with the structural damage because the
buildings keep collapsing.
Kerrick later pleaded guilty to tax fraud. In two thousand
and nine, FBI director Cash Betel posted on social media
that Carrick's death came after a private battle with illness.
Bernard Carrick was sixty nine. Two NPD officers, including a
detective on Mayor Eric Adams security detail have been placed
on modifying duty after authorities discovered their connection to two
crypto entrepreneurs charged with kidnapping and torturing an Italian tourist.
According to people with knowledge of the internal investigation, the
officers were working off duty for John Wols and William
de Plessi. Investigators are looking into allegations that the detective
transported to USTs to the location where he was held
captive for seventeen days in an upscale townhouse in Manhattan.
Prosecutors alleged Boston Duplessi tortured the victim to extract the
password to his Bitcoin account. Harvard University President Alan Garber
emphasized the school's international reach at Thursday's commencement ceremony, amid
a battle with Trump administration officials over enrolling foreign students.
Garber's speech was met with a standing ovation.
Members of the class of twenty twenty five from down
the street, across the country, and around the world.
Global news twenty four hours a day and whenever you
want it with Bloomberg News. Now, I'm Michael Barrn. This
is Bloomberg.
Karen, all right, Michael barr Thank you time now for
the Bloomberg Sports Update. Here's John stash Hour. John, good morning.
Do you want to here? In It's next season that
saw them win fifty one games advance further in the
playoffs if they hadn't twenty five years, No Nick player
or a fan wanted it to end on the Guarden floor,
where they have struggled in the playoffs. As Game five
wound down, Nick victory was secure.
Pace has had their.
Chases within ten, the third, within twelve of the fourth,
New York.
Responding on runs each time. And the New York Knicks
have looked delimination.
In the eye and they are alive and kicking. And
now the series to game six in Indy, with the
Pacer lead cut three games to two on TNT, Knicks
never trailed, built up a twenty two point lead third quarter,
and Pacers never got it down to single digits. Next
one one to eleven ninety four. In the Battle of
the All Star point guards, Jalen Brunson this time dominated
Tymes Halliburton. Brunson scored thirty two points. That's his twenty
first career playoff game at least thirty. Haliburton went from
thirty two points In that Pacers Game four win down
to eight, he went from a triple double to a
triple single, six assists, two rebounds. Still a long way
to go for the Knicks to become the fourteenth team
in NBA history to win a series after trillion three
to one, but they live to play Game six tomorrow
for the sixth time in Stanley Cup playoff history, the
same two teams we'll meet in consecutive finals. Florida beat
Edmonton a year ago in a Game seven. They'll start
this series next Wednesday in Edmonton. The Oilers wrapped up
the West with a six to three win at Dallas,
winning the series for to one. The marquee series of
the baseball season starts tonight in La Yankees and Dodgers
Aaron Judge, Shohei Otani a World Series rematch, and the
Yanks come in red hot five straight wins, nine to
the last ten, sixteen to the last twenty, and they'll
have Max Freed on the mount tonight. He's seven to zero.
His ERA is one point twenty nine. Mets Tonight host
the Rockies, who are nine to forty seven, three and
twenty five on the row. They've been outscored by one
hundred and seventy five runs the Nationals with a six
run ten to eight to win nine three. At Seattle,
Phillies and Braves split a doubleheader of the Phillies two
games ahead of the Mets. Frt Jopins second round victories
for Novak Djokovic going for his twenty fifth career Grand Slam.
Also Top Seedyonick Center and Coco Golop. Third round begins today,
John Stashaware Bloomberg Sports count and then.
Lisa 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.
It is five twelve on Wall Street. Now to the
latest in the Trump Administration's battle to keep control of
global terrorists. This is after a pair of court decisions
try and block it for more. We are joined by
Bloomberg News Senior editor Bill Ferries. Bill, thanks for joining us.
The headlines coming in fast and furious yesterday. Most recently, though,
the Federal Appeals Court has allowed the President's tariffs sustain
effect for now, so it's temporary. Comes after the Trump administration,
they threaten to go to the Supreme Court. So if
you could tell us what kind of signal is this
latest move and how long is this order going to last?
Yeah, it seems like day where we're reacting to something
completely different. And the White House right now really celebrating
this decision by the Appeals Court to temporarily halt that
decision by the US Trade Court. That Trade Court had
basically said most of President Trump's tariffs that he's enacted
since January were illegal and had to be taken care
of eliminated within ten days. This Appeals Court had just
basically put the brakes on that. They said, hold on,
we need more time to assess this. We will leave
things as they are now. The challenge here is no
one really knows what that Appeals court final decision will
be like. They could still rule against the White House
and against the Trump administration on these tariffs. The White
House has already said it would be willing to take
this all the way to the Supreme Court. I think
almost no matter what happens, this will be a Supreme
Court decision. The White House is really committed to this
tariff policy, and they say that even if they lose
at the Supreme Court, they have other tools at their
disposal to make sure their focus on tariffs continues.
And what are some of those tools, because we heard
White House Trade advisor Peter n'vauer. He told Bloomberg yesterday
that it doesn't change things. This court decisions and the
president has other options. What are these options?
Well, it's true there are other options. I mean some
of the Section three ZHO one tariffs that that the
President put in place in his first term against China,
those are still there. Those are still in place. The
challenge is the White House chose this path declaring a
national emergency to impose these tariffs because it was the
fastest and easiest way to get their policies in place.
If that's not the tool they have, there are other
legislative options, but the challenge is they take more time,
they may not be permanent. They're also going to be
subject to legal cases. So declaring a national emergency and
putting in a ten percent tariff is something the President
felt like he could do right away. If you're using
some of these other options, it might take up to
two hundred and seventy days for an investigation to take place.
You might only be able to have them in place
for five months, so they're much much more restrictive. I
think the White House is hoping to avoid that option.
So all these options, and you mentioned the Supreme Court
too and everything, how far does the president's power stretch?
Well, the big question here is, you know, and the
issue the Trade Court raised was listen, you're saying there's
a national emergency because of the arrival of fentanyl within
the US, and you're saying there's a national emergency because
of the US trade deficits. The court ruled those may
be problems for the United States, but they aren't the
kind of national emergency that allows you to just slap
tariffs across the board on every country, even if the
issue you're talking about isn't really related to those countries.
That's the question before the courts. Now we're going to
see whether that's a power that the Supreme Court and
the Appeals Court believe the president should have.
All right, and does this take away any le wide
from his team as they continue with trade negotiations coming up.
Well, yeah, we're right in the middle of all those.
We're in the back half actually of those delayed reciprocal
tariff negotiations that's going to be continuing. We heard from
Scott Bessant over the last day that trade talks with
China seem to have stalled a little bit. It's hard
to know. If you're a foreign government and you're going
in you have to make the assumption that the White
House is going to keep pushing on tariffs one way
or the other. But it does look like they've lost
a little bit of their leverage. That may allow you
to have a little bit harder of a negotiating position
when you're dealing with the US.
This is Bloomberg Daybreak, your morning podcast on the stories
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