Carney Wins Canada's Election; President Trump's First 100 Days
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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, we begin with politics north of the border in Canada. Mark Carney's Liberal Party is projected to win a fourth consecutive election. Despite the victory, it is likely the Liberals will fall short of the 172 seats needed for an outright majority in the House of Commons.

The narrow margin means the former central banker will need to work with other parties to pass legislation as he navigates trade hostilities to the south with the Trump administration. Mark Carney took aim at the U.S. in his victory speech, which has been edited due to some technical difficulties with the broadcaster at the event. Our old relationship with the United States, a relationship based on steadily increasing integration,

is over. The system of open global trade anchored by the United States, a system that Canada has relied on since the Second World War, a system that, while not perfect, has helped deliver prosperity for a country for decades, is over. We are over the shock of the American betrayal, but we should never forget the lessons.

The former head of Canada's and the UK's central banks, Mark Carney, became the Liberal leader just last month. On March 9th, he called an election. Just two weeks later, he campaigned as a tough opponent to President Trump, who has repeatedly suggested Canada should become a U.S. state.

Well, Nathan, let's turn to politics on the U.S. side of the border. President Trump is headed to the heart of auto country, Warren, Michigan, to mark his first 100 days back in office tonight. Ahead of that, he's planning a trade reprieve for the auto sector. The White House said the president will reimburse automakers for tariffs on foreign parts and cars made in the U.S. And imported vehicles will get a break from separate tariffs on steel and aluminum.

so that multiple duties won't be stacked on top of each other. The changes will come just before the 25% tariff on foreign auto parts is set to take effect this Saturday. And you can hear President Trump's remarks on a special extended edition of Bloomberg Balance of Power. That starts at 5 p.m. Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast page on YouTube. Meanwhile, Karen, trade tensions persist between the U.S. and China, and China appears to be holding firm.

We get the latest from Bloomberg's Min Min Lo in Hong Kong. Wang Yi, the foreign minister of China, essentially saying in the BRICS meeting in Brazil that any country that compromises with the U.S. is only going to see the bully trying to take further advantage. And that doesn't sound like a de-escalatory tone from China. We also see how China in the press briefing yesterday announcing all these measures to help its exporters shoulder the pain of these terrorist attacks.

which shows that China is prepared to tide through this for a protracted war and they're not in any urgency to resolve this. Bloomberg's Min Min Lo reports these latest comments from China's foreign minister come after Treasury Secretary Scott Besson told CNBC it's up to China to de-escalate and that the U.S. has an escalation ladder that it's anxious not to use.

Nathan, the Treasury Secretary, has set a July 4th goal to pass President Trump's multi-trillion dollar tax cut package. Congressional leaders have set different timelines, with House Speaker Mike Johnson aiming to pass legislation by the end of May and Senate party leaders targeting a vote by August. Nathan Dean is Senior Government Analyst for Bloomberg Intelligence.

There are going to be some tax cuts in this bill. I mean, so what they're talking about is a $5.3 trillion reconciliation bill. There's about $1.5 trillion earmarked in there for tax cuts. Primarily what we're thinking is no taxes on tips, no taxes on overtime, and no taxes on Social Security. Those are the three main priorities.

Bloomberg Intelligence's Nathan Dean says the push for a tax bill comes as polls show Americans disapproving of Trump's handling of the economy. In Europe this morning, Karen, Spain and Portugal are returning to some semblance of normal this morning. The power's back to nearly 100% capacity in Spain, and it's been fully restored in Portugal. This follows one of Europe's worst blackouts in years across the Iberian Peninsula. We get more from Bloomberg's Rodrigo Oruella in Madrid.

We don't exactly know what sparked this outage. So there was an explanation that it had something to do with the frequency of the tension on the system. But that came from the grid operator early in the afternoon. The government subsequently, the prime minister himself subsequently said that all theories are still on the table and nothing has been dismissed. So the answer to how this happened hasn't been offered yet.

And until that comes, I don't think anybody will be able to say what are the solutions. Bloomberg's Rodrigo Orweila says the blackout has raised questions about the reliability of Spain's power grid. It is increasingly reliant on renewable energy and the outage may have an immediate impact on Spain's economy. Let's stay in Europe, Nathan, where it's a very busy morning for earnings. We go to London and get the recap with Bloomberg's Ewan Potts. Ewan, good morning.

Karen and Nathan, a volatile quarter for markets has proved fruitful for Germany's biggest lender, Deutsche Bank's trading unit, reporting record revenue in the first quarter with gains of 17% in its fixed income and currencies business. Europe's most valuable bank, HSBC, also comfortably beating estimates with first quarter profit coming in at $9.48 billion. The London-based lender is to buy back $3 billion of shares, $1 billion more than its previous programme.

But the uncertainty from the U.S. proving a headwind for Schneider Electric, with first quarter revenue missing estimates despite strong demand for data center infrastructure. Shares currently down more than 7% in Paris. Live in London, I'm Ewan Potts, Bloomberg Radio. Ewan, thank you. It's also a busy day for earnings here in the U.S. 44 companies in the S&P 500 report this day alone. And this morning, we hear from General Motors. Bloomberg's Tom Busby has a preview.

The big focus for investors is whether GM, like some of its rivals, will suspend its full-year guidance because it imports nearly half the vehicles sold in the U.S. from Canada, Mexico, and South Korea. All this amid the uncertainty around the impact of the president's tariffs, some of which are already in place, some more aggressive levies on autos and auto parts set to go into effect on May 3rd. Bloomberg Consensus calls for earnings per share of $2.73, net revenue of $43.03 billion.

Tom Busby, Bloomberg Radio. Tom, thank you. Grounded. American Airlines says it has ended discussions with JetBlue to revive a pact for the two airlines to team up again. The previous Northeast partnership was halted by the former Biden administration after a federal appeals ruling concluded the pact

violated antitrust laws. The failure to revive their partnership could now leave the door open for one of America's rivals to work with JetBlue, which has been engaged in talks on tie-ups with more than one airline. Way beyond the skies, Karen. Amazon's first batch of production satellites is in orbit. The craft are the first in a plan of more than 3,200 satellite constellation Amazon intends to use to sell internet connectivity to consumers.

as well as corporate and government clients. That business today, dominated by Elon Musk's SpaceX and its Starlink unit.

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 Barr. Michael, good morning. Good morning, Karen. New York Governor Kathy Hochul says she reached a deal with the legislative leaders on a $254 billion budget that would raise payroll taxes on employers. Hochul, during a news conference Monday, compared her goals with her January State of the State address. I vowed to address the affordability crisis by putting thousands of dollars back in New Yorkers' pockets.

I vowed to make common sense changes to our discovery laws to keep dangerous criminals from walking free over frivolous, frivolous tactical errors. The governor also secured a ban on smartphones in public schools and lower barriers to involuntarily committing people with serious mental illnesses into treatment.

New York City's congestion pricing toll generated $159 million in revenue in its first three months. The MTA says the program is expected to raise $500 million this year. Pakistan's army said it has shot down an Indian spy drone along with their disputed border in the Kashmir region as tensions rise over last week's militant attacks that killed 26 people.

According to Pakistan's state-run TV channel, the unmanned drone breached the so-called line of control in Kashmir, a northern region claimed by both countries.

President Trump ordered the Justice Department to launch a program including free legal assistance from law firms to police officers accused of wrongdoing. Trump said in an executive order the program will provide legal resources and identification to law enforcement officers who unjustly incur expenses and liabilities for actions taken during the performance of their official duties to enforce the law.

Amnesty International's annual State of the World Human Rights Report details what it calls a global human rights crisis, which it blames in part on President Trump. The organization says the outlook for human rights around the world is bleak. Amnesty's Secretary General, Agnes Kalmar.

Nationally around the world, we are seeing, witnessing an escalation of authoritarian practices. So it is an alarming picture. This is a warning. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Cameron. All right, Michael Barr, thank you.

Time now for the Bloomberg Sports Update. Here's John Staschauer. John, good morning. Good morning, Karen. First place Yankees, last place Orioles in Baltimore. Ryan O'Hearn, a three-run homer, third inning off Will Warren. The Orioles led 4-0, held on to win 4-3. Yankees are just 4-6 in series openers. The Mets were just south of there, finishing the series in D.C. One Met in particular led them to an easy victory. Here he slams this one to deep right field. Back goes Cruz, back to the wall.

It's out of here. A grand slam for Brandon Nimmo. A two home runs, seven RBI day for Nimmo.

11-0 New York. On SNY, the Mets weren't done, nor was Nimmo. He added a two-run double for the 13th nine-RBI game in baseball history. The Mets beat the Nats 19-5. Speaking of blowouts, fourth most lopsided win in NBA playoff history. Cleveland won at Miami 138-83. The Cavs sweep the series much closer in San Francisco with the Warriors. Got Jimmy Butler back from injury. He played 40 minutes, scored 27 points. Golden State beat Houston 15.

109-106 and now up 3-1 in the series. That's the Knicks lead on Detroit heading to game five tonight at the Garden. The Celtics are up 3-1. They'll host Orlando. If the Knicks and Celtics both win tonight, it's on to a second round series that would start this weekend in Boston.

Stanley Cup playoffs, game four of the in-state battle saw Florida beat Tampa Bay 4-2. The Lightning scored their goals 11 seconds apart, second period. And then the Panthers came back and did the same thing late in the third, the defending Stanley Cup champs. Up three games to one, Dallas beat Colorado 6-2 for a 3-2 series lead. Pittsburgh fired Mike Sullivan, winning his coach in Penguins history, won two Stanley Cups. Rangers are looking for a new coach. They could very well be interested in hiring Sullivan. John Staschauer, Bloomberg Sports.

When you have bars in the sky, onboard showers and award-winning in-flight entertainment, it's no surprise that Emirates was recently named the best airline in the world. We fly you to over 140 destinations and with partners across the globe, we connect you to another 1,700 cities across six continents. So when we say we're also the largest international airline, what we really mean is...

If you're going there, so are we. Book now on emirates.com. Fly Emirates. Fly better.

Thrivent can help you plan your finances for the people, causes, and community you love. What makes Thrivent different? A combination of financial services and generosity programs. Thrivent offers advice, investments, insurance, banking, and generosity, as well as resources to fund service projects or direct dollars to causes you care about. With more than 120 years serving clients, you can plan your finances with confidence. Visit Thrivent.com to learn more. Thrivent.

where money means more. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. It is the morning after a winning election night for Mark Carney and the liberals in Canada. The new and now continuing prime minister says he has a mandate to stand up to U.S. President Donald Trump.

Who's ready to stand up for Canada with me?

It was Liberal Prime Minister Mark Carney at his victory speech last night, joining us from Quebec this morning, just across the river from Canada's capital, Ottawa. Bloomberg News correspondent David Gurra, the host of the Big Take podcast. It has to be said, David, this was a narrow victory for the Liberals, but still quite the turnaround from where this party stood under former Prime Minister Justin Trudeau just a few short months ago. Good morning.

Good morning, Nathan. Let's start where things stand. So we know that the Liberal Party has 168 seats and the threshold that it needs to form a majority government is 172. So this is razor thin and I suspect we'll see some changes to those numbers as the hours wear on and we get into the morning.

But this was inconceivable just a few months ago, and I think we should underscore that. If you go back to the end of last year when Justin Trudeau was still in power as the leader of the Liberal Party and the prime minister of this country, liberals were not doing well. They were losing to conservatives by 20% in public opinion polls.

That changed really radically because of two things: the emergence of Mark Carney as the new leader of that party, and Donald Trump returned to the White House in Washington, D.C. And that provided the kind of contour or driving message of this campaign, not just for the Liberal Party, but for the Conservative Party as well and some of these other smaller parties. The challenge of having to deal with what was, has been, a long-standing ally, where we saw the tone change on the economic and trading relationship that's been so crucial to these two countries.

and these threats to Canadian sovereignty as well. And so you heard that from Mark Carney last night, or I should say early in the morning, as he took to the stage in Ottawa. Again, a recognition of that, a renewed seriousness, having to deal with that threat, and him articulating his plans for whenever that meeting happens between him and President Trump and what he said during the campaign was shortly after this election, should he win, that's when the conversation, the real conversation can take place about what this relationship is.

looks like going forward, Nathan. I want to talk a little more about that conversation. We've got breaking news this morning from the Canadian Broadcasting Corporation that the conservative leader, Pierre Polyev, is projected to lose his seat. How does that potentially underscore where the conservatives stand now?

This is incredible news for the Conservatives. Pierre Poliev is a young politician. He's 45 and he's held this seat. He's held that riding, that district, for 20 years. And so to hear that he hasn't won it, that's the riding of Carlton, about 35 miles away from Ontario, from Ottawa, Ontario, is astonishing. And if you look at the

past that the leaders of parties that have lost them have stepped down from that leadership role pretty shortly thereafter so that's something we'll be watching here too does he stay on in that position but it's a story that's also true of the new democratic party one of these smaller parties that performed much worse than i think its supporters hoped it would and so it it gained about seven seats over the course of this election it had twenty four before that and it puts it in a very difficult position going forward here because it's not going to have the kind of parliamentary uh... recognition that it had with with more seats seats

The reason all this is important is if Mark Carney is governing a federal minority government, he's going to need these parties to help him. And so that'll be a thing that'll be really fascinating to follow. Again, should he be in a minority position, how he begins to cobble together some sort of agreement or coalition among these parties to support his legislative agenda.

His background is as a technocrat, of course, a central bank governor. He just embraced politics over the last few weeks. How he navigates that success will be something very, very interesting to watch, Nathan. Only about 30 seconds left. But where does this position Mark Carney now in this standoff that he now says he's been forced into with the U.S.?

Well, he says Canada's sovereignty is not negotiable, Nathan, and I think that he's drawn that line in the sand and that'll remain the case. But he's talked a lot about the way that Canada is going to get through this, the sacrifices that Canada is going to need to make, the economic sacrifices. We'll see sort of what the contours of that program look like in the weeks to come here. But he's proposed a lot of new fiscal spending, particularly on housing here, to insulate Canada's economy and to get it going once again. That's what we'll be watching here now that he has become and will remain, I should say, the 24th Prime Minister of Canada.

This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. There are presentations.

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