Trump Defends Economy & Tariffs in State of the Union

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Karen, we began with the main political event of the moment,
President Donald Trump's State of the Union Address.
Members of Congress, and my fellow Americas. Our nation is back, bigger, better, richer,
and stronger than ever before.
Over a record one hour and forty seven minutes, the
President delivered a strident defense of his economic record in
a speech that was heavy on patriotism.
This July fourth, we will mark two and a half
centuries of liberty and triumph, progress and freedom in the
most incredible and acceptional nation ever to exist on the
face of the earth. And you've seen nothing yet.
President Trump touted falling food and gasoline prices and blamed
Democrats for costs that have stayed elevated since before the pandemic.
And after the Supreme Court struck down his signature tariffs
last week, President Trump gave little indication he plans to
steer away from import duties.
They will continue to work along the same successful path
that we had negotiated before the Supreme Court's unfortunate involvement.
So despite the disappointing ruling, these powerful country saving it's
saving our country the kind of money we're taking in.
President Trump delivered his remarks before four of the Supreme
Court's justices, three of whom voted to reject his emergency tariffs,
Well Nathan.
President Trump did not offer many new policy proposals in
his speech, though he did promise a thousand dollars retirement
saving match for workers without four oh one case. He
also called for a congressional ban on stock trading, and
he took aim at Democrats for opposing his tough stand
on immigration enforcement.
These people are crazy, I'm telling you crazy.
The President accused Democrats of destroying the country. After starting
the speech with a recognition of Olympic gold medal winners,
President Trump also touched on foreign policy with awarding about
Iron's nuclear program.
They continue starting it all over. We wiped it out,
and they want to start all over again, and are
this moment again pursuing their sinis to ambitions. We are
in negotiations with them. They want to make a deal,
but we haven't heard those secret words. We will never
have a nuclear weapon.
President Trump also praised the operation in Venezuela that captured
former President Nicholas Maduro and awarded the Congressional Medal of
Honor to one of the helicopter pilots involved in the raid.
In one of the speech is more poignant moments, the
President awarded the Purple Heart the National Guard member who
survived an attack in Washington last November.
The reaction, of course, Karen is pouring in to President
Trump's speech. Davis was national campaign manager of John McCain's
two thousand and eight presidential campaign and is now a
Bloomberg Politics contributor.
I think it was a different kind of speech than
what we're used to seeing from President Trump. Normally, he
paints a pretty dark picture of the country in order
to say how much he has changed and made it better.
He actually started off with the positive report card, and
at a time when most people are tuned in the
first thirty minutes of this speech, he's going to get
the highest number of eyeballs on the TV. He talked
about affordability, the economy.
And like Rick Davis, Genie Sheenzano is also a Bloomberg
Politics contributor.
I think he.
Got the memo from Susie Wilds affordability, affordability with our
first hour was on affordability. But what he didn't do
is say how he is going to fix and address
how people feel. And I don't think he changed any mind.
So I think it was better than I thought it
might be, but it wasn't enough to give people confidence
that anything is going to change in the next year
or two.
Bloomberg Politics contributors Jeanie she and Zano and Rick Davis
made their comments on a special edition of Bloomberg's Balance
of Power with Joe Matthew and Kaylee Lyines Nathan.
Virginia Governor Abigail Spanberger delivered the Democratic rebuttal to President
Trump's State of the Union address.
Since this president took office last year, his reckless trade
policies have forced American families to pay more than seventeen
hundred dollars each in tariff costs. Small businesses have suffered,
farmers have suffered, some losing entire markets. Every day Americans
are paying the price.
Virginia Governor Abigail Spenberger was flanked by American flag, so
she delivered the speech from Colonia Williamsburg. Democratic Senator Alex
Padia of California delivered the party's Spanish language response.
Now, Karen, we turned to the latest in the search
for the mother of Savannah Guthrie. The Today's Show host says,
the families putting out a new reward for information leading
to the recovery of Nancy Guthrie.
We need her to come home. For that reason, we
are offering a family reward of up to one million
dollars for any information that leads us to her recovery.
Savannah Guthrie made that announcement on Instagram. Nancy Guthrie went
missing from her Arizona home more than three weeks ago.
Let's turn to the markets now, Nathan futures are a
higher ahead of yesterday's tech field rally on Wall Street.
The one percent gain for the Nasdaq comes ahead of
this afternoon's earnings report from AI behemoth and Vidia. We
get a preview with Bloomberg's Tom Busby, and.
Nvidia needs to deliver another blowout earnings report to justify
the hundreds of billions of dollars being spent by tech
giants on its artificial intelligence chips and other AI infrastructure.
CEO Jensen Wong is the short investors that demand remains
high as customers like Alphabet and meta platforms have detailed
aggressive spending plans over the blame few weeks, but investors
are eager to hear about additional ways for Nvidia to grow,
including planned chip sales in China. Bloomberg consensus calls for
revenue of sixty five point nine to one billion dollars
on adjusted earnings per share of a.
Dollar fifty three.
Tom buzzby Bloomberg Radio.
All right, Tom, thank you. In Europe, shares of HSBC,
you're trading near a record right now. They're up four
and a half percent. Europe's largest bank reported better than
expected earnings and raised some targets. In an interview with Bloomberg,
HSBC CEO Georgio Henri said the bank will continue to evolve.
We are transforming with precision, with discipline, and we're doing
it at pace, and we expect to be able to
conclude a number of the actions we set out to
do earlier than initially planned.
HSBC's GEORGEO. Henri says the strong results boosted the bonus
pool by about ten percent to three point nine billion dollars.
That is the highest in at least a decade.
Nathan, we have new developments this morning in the takeover
battle for Warner Brothers, and we get the details with
the Bloomberg's John Tuckert.
Good morning, Good morning County.
Yeah, this is the Hollywood drama that seems to have
no ending. Warner Brothers Discovery says a new thirty one
dollars a share of buyout offer from Paramount Skuydance could
lead to a better deal than its existing agreement with Netflix.
This may lead to yet another round of bidding for
the iconic Hollywood studio. Now, Warner Brothers isn't withdrawing its
recommendation that investors get behind Netflix's twenty seven to seventy
five is share agreement, but the latest Paramount terms might
just need a closer look of Paramount's latest salvo shows
the company led by David Allison isn't dropping it's pursuit
of Warner Brothers anytime soon. Well, Sweden offer is going
to test Netflix's willingness to pay out for the Warner
Brothers production studios in a library that includes DC comics
and Game of Thrones. I'm John Tucker, Bloomberg Radio.
Hight John, Thanks, turning to the economy now, Chicago Fed
President Austin goles Be says the Supreme Court's decision to
strike down many a President Trump's tariffs may help cool inflation.
In an interview with Bloomberg, Golesby also raised FED Chair
Jay Powell.
I've said, unapologetically, I think Jay Powell's a first ballot
Hall of Fame FED chair, and I'm a big supporter
of his. I don't know what the rules are when
people's terms expire as chair? Are they allowed to stay on?
If they are?
I'm a big Jay.
Powell supporter and Chicago FED President. Austin Gilesby also praised
President Trump's pick to succeed Powell as chair, former FED
Governor Kevin Warsh. You can catch the full interview at
the new Bloomberg video hub. Find it at Bloomberg dot
com slash videos.
And we have a programming note, Nathan. The markets may
pause for the weekend, but the world does not. That's
why we're bringing you a new radio and TV show,
Bloomberg This Weekend is looking beyond the daily headlines to
the bigger themes driving politics, business and culture. Join David Gura,
Christina Ruffini, and Lisa Matteo for smart conversations and in
depth interviews that help make sense of the week that's
been and what comes next, Saturdays and Sundays from seven
am Eastern on Bloomberg Radio TV and the Bloomberg Business App.
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 Bloomberg's Michael Barr Michael, Good Morning.
Good Morning Karen. During President Trump's State of the Union speech,
he referenced New York City Mayor Zoron Mamdani. The President
says New Yorkers are required to provide identification showing US
citizenship to register to vote, but do not have to
show ID to cast a ballot.
And even the new comtist may of New York City,
I think he's a nice guy. Actually speak to him alone.
Bad policy, but nice guy just said. They want people
to shovel snow. They got hit hard. Want them to
shovel snow. But if you apply for that job, you
need to show two original forms of ID at a
social security club. Yet they don't want identification for the
greatest privilege of them all, voting in America.
National good President Trump has proposed to enact a national
voter id law. American tourists are still stuck in Porto
vine Arta, days after the Mexican army killed a cartel
boss Sunday, sparking clashes. This man was visiting from Chicago
with his husband and friends when he says, a gunman
approached their rental car.
He got to the car, pointed at my head and
through the window said get out of the car. He
threw the combomber and the sundiary device in it, and
the car exploded.
He hunkered down for days after the State Department orged
US tourists across Mexico to shelter in place. The calls
for resignation are getting louder for Republican Congressman Tony Gonzalez
following the release of explicit text messages with a congressional
aid who died by suicide last year. Gonzales says, though
he won't step down, t Rosano stock in Rosa. I
worked every day for the People's Texas.
I you kereen and there would be an opportunity for
all the details, and Fox atmout what you've seen is not.
All the Fox speaker Mike Johnson said the matter is
under investigation. However, the speaker stops short of calling for
Gonzalez to step down, despite a growing number of House
Republicans who have called for his resignation. French President Emmanuel
McCraw has accepted the resignation of the Louver Museum's president,
Leron de car had been under fire in the wake
of a stunning and embarrassing heist of the French crown jewels.
Global News twenty four hours a day and whenever you
want it with the Bloomberg News. Now now Michael Barr
and this is Bloomberg, Karen.
Thanks Michael.
All time now for our Bloomberg Sports update, and for
that we bring in John stash Hour.
Thanks Karen. The top four teams in college basketball all
played in one that includes Number one Duke a forty
four point victory at Notre Dame, I ranked Arizona one
at Baylor, Third ranked Michigan beat Minnesota. All three of
those teams have a record of twenty six and two.
Also winning was fourth ranked Iowa State and Miami of Ohio,
who's now twenty eight in oh The Atlanta Falcons say
they will release quarterback Kirk Cousins when free agency begins
next month. He played the last seven games for the
Falcons and they went five and two. That's your Bloomberg
Sports Update.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. After more than a year
back in office and with polls showing more anxiety over
the economy, President Donald Trump used his first State of
the Union address of his second term to declare, our
nation is back.
I can say with dignity and pride that we have
achieved a transformation like no one has ever seen before,
and a turnaround for the ages.
President Trump in the record setting one hour and forty
seven minutes State of the Union this morning. We're joined
by Jennifer Lawless, professor of politics at the University of Virginia.
Appreciate you coming on so early this morning. After that
long speech. I wonder if you watched the whole thing
and what your reaction to it was. Good morning, professor, Good.
Morning, Thanks for having me. It was a long speech
and it was basically exactly what Republicans and Democrats were expecting.
Donald Trump touted his successes, and those successes are perceived
by Republicans as the energy that they need heading into
the midterms, and those same successes are perceived as failures
by the Democrats, who believe that the Trump agenda is
just completely wrong and leading the country in the wrong direction.
So I don't think that anybody who watched the speech
left surprised.
So this was a chance for the president to offer
something of a reset with the polls showing as I mentioned,
some of those anxieties around the economy, immigration enforcement, even
foreign policy as well. Did he offer that reset?
I don't think so. He has a problem that Joe
Biden had a few years ago, which is that you
can name a bunch of metrics that suggest that the
economy is moving in the right direction, but if people
don't feel it, it doesn't matter. And you have to
be really careful about how you thread that needle, because
you don't want to tell people that they feel something
or they're experiencing something that's wrong, and he was unable
to do that. It's one thing to itemize a bunch
of statistics. It's another to actually make people feel like
the economy is improving, and I don't think he was
successful on that front.
Though he did offer a few policy proposals, he made
it pretty clear that he's going to stick with tariffs
and mention things like retirement matches for people who don't
have four oh one k's congressional stock ban, that sort
of thing. Are those the kind of things that reson
with voters.
The polls suggest that what matters right now to voters
is affordability. The twenty twenty five election in the fall
made that very clear. The Democrats outperformed expectations largely with
candidates who were pushing that affordability message, and the Trump
administration just hasn't been able to do that in a
compelling way. So they can talk about other issues. They
can talk about four oh one case. People are more
concerned right now about whether they have money in their
pockets to buy groceries. So again, these are not necessarily
policies that would be viewed as very unpopular, but they're
not what people are looking for when they wake up
in the morning and they're trying to figure out how
to put food on the table.
Well, it kind of gets us too. The Democratic rebuttal
as well. For people who stayed up long enough to
see Virginia Governor Abigail's span Berger, it was pretty late.
Does that hinder the message for Democrats? Just from the timing?
And if you did see the message, what did you
make of that?
I did watch Abigail Spamberger's speech. It was very similar
to the campaign's speech that she was giving over the
course of her gubatatorial campaign that resonated in Virginia. It
resonated with Democrats and independents and even a handful of
Republican voters. The problem is it was well after eleven o'clock.
People were tuned out. Most people don't watch the State
of the Union address in the first place, and frankly,
the people who are tuning in already have solid views
of both Donald Trump and the Democrats, and so I
think she was quite effective. It's a terrible speech to
have to give. The rebuttal is well known as a
very difficult endeavor, but I'm not sure that that matters
much either.
Speaking with Jennifer Lawless, professor of politics at the University
of Virginia, So given that we didn't see very many
policy proposals and we did see a lot of attacks
at times from President Trump against the Democrats. How does
this potentially set the tone heading into the midterms.
Well, I do want to note one policy change that
we saw, and that was the rhetoric around immigration. It
does seem that the President and the Republicans learned something
from what happened in Minneapolis, and so he was focused
more on border security, and he was focused more on
immigrants who he's deemed criminals than just sort of deportations
in general. And so I think that does suggest that
heading into the midterms, the Republicans might be a little
bit more careful about how they talk about immigration because
their harsh rhetoric and actions have backfired. But other than that,
my expectation is that twenty twenty six is going to
look a lot like twenty twenty four, and it's really
going to come down to which side could turn out
their voters because the Republicans are basically sticking with the script.
Sticking with the script as well when it comes to
foreign policy, we heard the President touch on the tensions
with Iran as well. Did you see the President tip
his hand at all in terms of where things could
go after the negotiations that are set to resis in
Geneva tomorrow.
I think he was pretty careful. I don't think that
he wanted to pollute those negotiations. I'm not sure that
he knows exactly what it is that he's going to do,
and given that the world was watching and that world
leaders are watching, I don't think he wanted to say
much ahead of time. I was actually surprised at how
little attention foreign policy received at the speech, given what
a big central part of his agenda.
It is just the fact that we did see so
much of a focus on domestic policy as well. What
does that tell us about what the focus could be
from the President and the White House over the next
few months. I mean, we've heard from the White House
Chief of Staff, Susie Wilds a while back saying that
the President was going to be out on the road
almost weekly touting the economy. Do you see that continuing.
If that's going to continue, the President needs to work
on the messaging, because again, there was a disconnect between
the kinds of statistics and successes that he was touting
and the average Americans' perceptions of whether anything is affordable.
It may be that he was trying out some lines.
It may be that he's beginning to think about what
his campaign trail speeches will sound like when he's campaigning
for other Republicans. But at this point, I don't think
that the words that he used last night and the
policies that he talked about last night are going to
lead to major successes for Republican candidates, because people in
America are just not feeling economic gains right now.
Just about a minute left here, professor, what moments from
the speech or moments do you think are going to
stand out if any? And we usually see a post
State of the Union bounce in the polls for the president,
do you think we'll see that again this time around?
The bounce in the polls is tricky because the people
who are tuned in tend to be the copartisans of
the president. That's true for both Democrats and Republicans, depending
who's in office. So the bump is usually short lived
and a little bit artificial. And the moments that the
media attend to cover are the moments that are unusual
or rare or provocative. I think we're going to keep
seeing over and over again the stand up. If you
agree with this statement attack that he took, which basically
was an attempt to get the Democrats either to agree
with him about what the United States is about and
what our goals as Americans should be, or to differentiate
them from Republicans. And you know, it was a pretty
bold move on his part. The Democrats did not stand up,
they did not take the bait. And my bet is
that we'll see that over and over and over again
for the next forty eight hours.
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