EU-US Tariff Battle Heats Up; Trump Will Send Air-Defense to Ukraine

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 battling back in the trade war. Bloomberg News has
learned the European Union is preparing to step up its
engagement with other countries hit by President Donald Trump's tariffs.
Let's go to London and get the very latest with
Bloomberg's James Wolcot. Good morning, James, Good morning, Nathan, and Karen.
The EU is reaching out to the likes of Calendar
and Japan to see if there might be a unified
global response to America's trade aggression. This reporting from Bloomberg
comes after the US President issued a new ultimatum of
a tariff rate of thirty percent over the weekend.
On the block.
Germany's Chancellor Friedrich Mertz warn that rate of thirty percent
would hit exporters in Europe's largest economy to the core.
Talks are still stuck on several issues, especially cars and
tariff rates and agriculture, but if levies do go up
in two weeks time, the EU is prepared to retaliate
on roughly eighty four billion dollars worth of US goods,
risking further trade escalation in London, James Wilcock Bloomberg Radio,
all right.
James, thank you well. President Trump will be heading to
the UK for his second state visit. King Charles will
host the President in September. Trump had warmly welcomed the
offer of another state visit to Britain when he was
handed the invitation by UK Prime Minister Keir Starmer in February.
The UK was the first country to sign a terror
production deal with the US in May.
Well before the President heads overseas, Karen, he may have
found a new pressure point for Federal Reserve Chairman Jerome Powell.
The President and his allies of it seizing on cost
overruns at the Central Bank's headquarters renovation as they continue
to hammer Powell for leaving interest rates unchanged. The President
made the point to reporters at Joint Bass Andrews outside
Washington last night, we should.
Have the lowest interest rate on Earth. How we don't.
He just refuses to do it. And yet he's spending
two and a half billion dollars rebuilding the bed.
President Trump says he thinks Powell should quit White House
National Economic Council Director Kevin Hassett discussed it as well
on ABC's This Week. The bottom line is that this
is the most expensive project in DC history, two and
a half billion dollars with a seven hundred billion dollar
cost overrun. White House Economic Advisor Kevin Hassett on ABC's
This Week heard Sundays on Bloomberg Radio Nathan.
For the second time this year, the world's most powerful
finance ministers gather in South Africa without the presidence of
US Treasury as Secretary Scott Besson will skip the Group
of twenty again this week, continuing a boycott of South
Africa by top US officials begun by Secretary of State
Marco Rubio.
He stayed away out.
Of scorn over his host theme for HG twenty Presidency
of Solidarity, equality and sustainability.
Turning now to the newest developments in the warren Ukraine, Karen,
President Trump says the US will send more Patriot air
defense batteries to Ukraine. Be spoke with reporters on his
way back to the White House.
Are you the number yet? But they're going to have
some because they do need protection. But the European Union
is paying for it. We're not paying any big parts,
but we will send it. It'll be business for us,
and we will send the patriots which they desperately need.
Ukraine had been receiving weapons from the US, but only
with money remaining from former President Joe Biden's time in office.
President Trump had previously refused to consider seeking additional funds,
arguing it would only harden Russian President Vladimir Putin's stance
and dim chances to end the fighting.
Nathan, former President Joe Biden, is pushing back. It went
of President Trump's harshest claims about his mental acuity while
he was in office. In an interview with The New
York Times, the former president said he made all the
clemency decisions that were recorded with an auto pen, and
that he had orally granted all pardons and commutations issued
at the end of his term. And he says President
Trump and Republicans are quote liars for claiming his aids
used an auto pen without his authorization.
Turning to the latest on the flood disaster in Texas, Karen,
the search for victim is expected to resume today along
the Guadalupe River, recovery efforts had to be put on
hold yesterday, with another round of heavy rains leading to
high water rescues Elsewhere. More than one hundred and sixty
people may still be missing in the July fourth floods
that left at least one hundred and thirty two dead. Meantime,
Homeland Security Secretary Christi Nome is pushing back at reports
that FEMA's response to the disaster was delayed.
So the fact that Democrats are politicizing this while people
are still looking for for their babies, they're still looking
for their family members, I think is absolutely despicable. And
the American people just I think need to know the
truth of what they're doing and how they're taking advantage
of the situation to help themselves politically.
Homeland Security Secretary Christi Nome appeared on Fox News Sunday
Heart Every Sunday.
On Bloomberg Radio, Nathan wall Street returns to work with
a focus this week on inflation and earning, so we
get a preview with Bloomberg Shirley Billett.
According to data compound by Bloomberg Intelligence, analysts are expecting
the slowest profit growth rate in two years. Emily Rowland
is co Chief investment Officer at Manualife John Hancock.
Analysts are penciling and five percent earnings growth for S
and P five hundred companies. That's come down a bit,
so the bar is lower. We're going from thirteen percent
earnings growth. Just awesome results in the first quarter.
Thanks will be front and center this week with reports
from JP Morgan, Chase, City Group, Wells Fargo, Morgan Stanley,
and Goldman Sachs. Also reporting this week, three M General Electric,
and Netflix in New York. Charlie Pellet Bloomberg Radio. Okay, Charlie,
thank you. Futures are lower as we begin the new
trading week, but Bitcoin is on the rise again. In fact,
the cryptocurrency is trading in a record right now, up
two point eight percent above one hundred and twenty two
four hundred dollars. Bitcoin is now up about thirty percent
since December.
Nathan, We're starting to see some of the impact of
the US trade war which China. China ended the first
half of the year with a record trade surplus of
about five hundred and eighty six billion dollars after exports
to the US began to stay X Sports rose year
on year by a higher than expected five point eight
percent in June, shipments to the US fell sixteen percent
from a year earlier, after slumping by over thirty four
percent in May.
And staying in Asia. Cairen the slump in Japan's long
term bonds as accelerating, pushing yields sharply higher in a
move that puts global debt markets on alert. While the
pressure in Japan is being heightened by a looming election
on July twentieth. Concerns over governments spending beyond their means
also applied to the UK, Europe and US.
Time now for a look at some of the other
stories making news in New York and around the world.
For that, we're joined by Bloomberg's Michael Barr Michael, Good Morning.
Good Morning Karen. Two women were killed and two other
people were wounded in a shooting at a Lexington, Kentucky church,
in a rampage that began after a state trooper was
shot and wounded. Authority said the suspect was also killed. Sunday.
In a news conference, Lexington Police Chief Lawrence Weathers says
it began after the trooper pulled over a vehicle near
the airport. The trooper had pulled over a vehicle on
terminal drive after receiving a license play reader alert in
the area of a sales road.
The trooper was shot and the suspect fled.
Chief weather As The suspect then carjacked the vehicle and
fled to the church, where he began shooting at people there.
The suspect was later killed by Lexington police. NATO's Secretary
General Mark Ruda is set to meet President Donald Trump
this week. NATO said Ruda will be in Washington today
and tomorrow and will meet with mister Trump, Secretary of
State Marco Rubio, and Defense Secretary Pete Hexath, as well
as members of Congress. Attorney General Pambondi is said to
have fired multiple Justice Department employees who were involved in
two federal prosecutions of President Trump during the Biden administration.
The Washington Post reports, according to several people familiar with
the terminations, twenty people were fired from the department, including
two prosecutors who worked under former Special Consul Jack Smith.
Reports of increasing tension between ag Bondie and Deputy FBI
Director Dan Bongino over the Justice Department's handling of the
Jeffrey Epstein case. There are new details now about a
confrontation the two had last Wednesday, with Bongino reportedly storming
out Afterwards. Former US Attorney General Christie says he believes
the decision went all the way to the top.
There's no chance, in my opinion, that Pambonni made this
decision on her own. No chance she was instructed by
the White House that we're not releasing this stuff, and
that's why he's defending her.
Former AG Chris Christie was on ABC's This Week Heard
Sundays on Bloomberg Global News twenty four hours a day
and whenever you want it with the Bloomberg News Now
Michael barrn, this is Bloomberg Karen.
All right, Michael barr thank you time now for the
Bloomberg Sport brought to you by Flushing Bank. Here's John
stash Hour, John, good morning.
Good morning, Karen. Baseball has hit the All Star break.
The game is tomorrow in Atlanta. The home run derby
tonight Yankees at the Stadium, out hit ten to two
by the Cubs, who won four to one. Snapped the
six hitting time with the Dansby Swanson two on homer.
Gangs got only an early home run by John Carlos
Stanton the Cubs with fifty seven wins at the break,
the most in two thousand and eight. Yanks are fifty
three and forty three, still two games behind Toronto, and
that only one ahead of the Red Hot Red Sox,
who beat Tampa Bay four to one, have won ten
games in a row. Mets in Kansas City shut out
until two runs top of the night that tied the game,
but not for long.
Coast shake shit.
Royals TV had did. They scoredoff Sean Menaia, who in
his season debut, came in into relief and through three
scoreless innings before giving up that run. In the ninth
Mets fifty five and forty two, half game behind the Phillies.
Nationals lost eight to one at Milwaukee, and then kicked
off the MLB Draft by taking, as expected a high
school shortstop from Oklahoma whose father played to the big leagues,
but not Ethan Holiday. He went forth to Colorado, where
his father Matt played the Nats, took Eli Willits, his father,
Reggie played for the Angels. He was recently the Yankees
first base coach. Gionnick Center and Carlos Alcarez met five
weeks ago in that French Open final that Alcarez won
in five sets five and a half hours. At Wimbledon,
it went to Center in four sets, and he said
the loss in Paris may have helped.
You just have to understand what you did wrong trying
to work on that. That's exactly what we did. We
tried to accept the loss and then just kept working.
And this is for sure one of the reasons why
I hold this trophy.
Center and Alcarez dominating tennis.
They won.
The last s would be Grand slams. John Stash thatwar.
Bloomberg Sports Kat Nathan Coast to Coast on Bloomberg Radio
nationwide on serious exam and around the world on Bloomberg
dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager on a morning where trade
jitters are working through the market once again. President Trump
over the weekend threatened the European Union and Mexico with
thirty percent terraff rates. But now the President says he's
still negotiating.
So the European Union is talking to us. They want
to open up their country. I would say Japan to
a much lesser extent in terms of opening up their country,
South Korea wants to make a deal other than.
Dark But after these latest terror threats from President Trump,
Bloomberg News has learned the EU is stepping up engagement
with other countries that have come under the administration's trade crosshairs.
For more on this, we're joined by Bloomberg News Senior
editor Bill Ferries, And in fact, Bill, we're just seeing
a headline from an EU official saying that European Commissioned
President Ursula Vonderline is going to speak today with Canadian
Prime Minister Mark Karney. What further engagement can we expect here?
Is this a potential pivot away from US trade?
Good morning, Good morning Nathan.
Well, the EU negotiators, i think, found the talks that
they've been involved in really disrupted by President Trump's announcement
over the weekend that he was just looking for a
thirty percent tariff on their goods. Negotiations had been proceeding
with the assumption, really the working assumption that perhaps there
might be a lower tariff rate, but also particular carve
outs for some industries. So we're talking about German automakers,
or alcohol exports from Europe, things like that. So there
really had been a lot of progress made in kind
of a complex formula, the President saying, you know, it
might be thirty percent and we'll leave it at that.
It's you know, this could be just another negotiating tactic.
You know, it's only July fourteenth, August first is still
a long ways away. But the EU signaling but they
want to work more closely with some other US trade
partners who are perhaps feeling the same kind of heat,
including Japan and Canada. That's not clear what exactly they
might do. They might share some tips on what's going
on in their own negotiations. They might find a way
to reroot some of the trade to help soften the
blow of whatever happens with the US. But there is
this sign of a little increasing unity for people on
the other side of the negotiating table from the US
when it comes to trade.
It's interesting to point out that we are days away
from August first. You say it's a long ways off,
but it's just a little more than two and a
half weeks. And if the European Union is looking to
step up engagement with some of these very same trading
partners that the US is in the middle of negotiations,
with I mean, how much more is there to give potentially.
Yeah, I mean it is coming up soon, but it's
still two and a half weeks, and I think in
Trump world, we've seen that you can get a lot
of whiplash in a two and a half week peer period.
There are ways for European exporters to look at perhaps
different markets for some of their goods they had reached.
You know, they have reached some agreements in the past
with China on trade with other countries. I think we've
seen that in Asia as well, countries looking to find
alternatives to goods that traditionally went to the US. It's
a lot easier with things like energy and in some
cases agriculture, but in the end, US is a very
hard market to replace. So I think at the best
you hope to soften the blow, not replace your trade entirely.
Okay, So while the President continues to put pressure on
trade partners, we're also seeing him put even more pressure
on Fed chair Powell, not just over interest rates, but
now over these cost overruns at the Central Bank's renovations.
Yeah, He's been obviously hammering j Powell for months about
how he thinks Powell needs to cut rates and cut
rates faster. He calls too slow, he's called him a loser.
He's put out a lot of insults. It's not clear
if the goal is to just get Palell to quit,
if it's to get him to actually cut those rates
or what. But they have opened this new front over
these renovations taking place at the Federal Reserve headquarters that
the Fed itself admits have gone way over budget. They
say due to rising costs in the wake of the pandemic.
The administration. Trump's allies are saying, maybe there's some mismanagement here.
Palell did address that before Congress just a couple weeks ago.
He gave that explanation about the rising costs, and he
said there's no VIP elevators, there's no fancy marble going in.
It's just a matter of rising costs. But this is
a potentially dangerous new front for the Fed chief as
Congress looks to Republicans in Congress look to investigate, and
the administration hammers home this message that he should go.
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