President Trump Says Trade Deals Coming; Warren Buffett Picks His Successor
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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, let's begin with the latest on the global trade war. President Trump is hinting that trade deals could come as soon as this week with some countries. The president spoke with reporters on Air Force One last night. At some point in the next two weeks or three weeks, I'm going to be setting the deal.

I'm going to say that such and such a country has had a tremendous trade surplus, surplus their way with us. They've taken advantage of us in various ways.

President Trump also says his aides are having conversations with their counterparts in Beijing, though he has no current plans to speak with Chinese President Xi Jinping. Nathan, the president says he does have plans for a new tariff on foreign-made films. In a Truth Social post, President Trump said he's directed the Commerce Department to begin instituting a 100 percent duty on movies made overseas. And he spoke about that on Air Force One last night as well.

I've been stealing the movies, the movie-making capabilities from the United States. And I said to a couple of people, what do you think? I've done some very strong research over the last week.

And we're making very few movies. President Trump's comments come after a Mar-a-Lago meeting over the weekend with actor John Voight. Sources tell Bloomberg Voight and his manager Stephen Paul gave the president plans for more movie and TV tax incentives. And Karen, all this follows a wide-ranging interview with President Trump on NBC's Meet the Press heard on Bloomberg Radio. The president said he may lower tariffs on China at some point because the 145% duties are so high now.

Both countries have essentially stopped doing business with each other. China's getting killed right now. They're getting absolutely destroyed. Their factories are closing. Their unemployment is going through the roof. I'm not looking to do that to China. The president also insisted he's not looking to fire Fed Chair Jay Powell, though he still thinks the central banks waited too long to cut interest rates. Well, he should lower them. And at some point he will.

He'd rather not because he's not a fan of mine. Not, you know, he just doesn't like me because I think he's a total stiff. President Trump also said he could give TikTok another extension to sell to a U.S. buyer, saying he has a warm spot for the Chinese-owned app. And asked again whether he's thinking of running for a third term, the president had this to say.

So many people want me to do it. I have never had requests so strong as that. But it's something that, to the best of my knowledge, you're not allowed to do. President Trump told NBC's Meet the Press he could see Vice President J.D. Vance or Secretary of State Marco Rubio succeeding him.

Nathan, in another major story, we're following this morning the passing of the torch at Berkshire Hathaway. Warren Buffett picked the final minute of a 60th annual shareholder meeting to announce his retirement. And Bloomberg's John Tucker joins us with more and John Buffett also announcing his replacement.

Yeah, Karen, it was a shock to many, including his shareholders at this meeting. Only his two kids, board members at Berkshire, knew this was coming, blindsiding even his vice chairman, Greg Abel. Abel is the man Buffett has picked to replace him. Todd Finkel, author of Warren Buffett, Investor and Entrepreneur, says the company will be in good hands. I think he's going to do a great job. He's been mentored all these years.

I haven't heard one negative thing about Greg Abel. Not one negative thing. Buffett will hand the 62-year-old Abel the keys to a $1.2 trillion giant commanding a portfolio of stocks like Apple and American Express on top of a collection of insurance, energy, railroad, and consumer businesses that churn out $10 billion a quarter in operating profit.

Able will now have to decide what to do with Berkshire's almost $350 billion cash pile after Buffett largely sat out a volatile last few years in the markets.

At 94 years old, Buffett has served as CEO for 60 years. And in pre-market trading this morning, Berkshire class B shares are down 2%. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. And reaction is pouring in around the world on Warren Buffett's pending departure. We get that part of the story from Bloomberg's Gina Cervetti. As Warren Buffett called an end to his historic run atop Berkshire Hathaway, luminaries from the technology and banking worlds rushed to

to praise the man whose lessons they partially credit for their success. Apple's Tim Cook called him inspiring. Bank of America's Brian Moynihan praised his lessons on life and business. And J.P. Morgan's Jamie Dimon said he's, quote, everything that is good about American capitalism. The famed investor delivered a more than 5,500,000% return on Berkshire stock as he turned a once-failing textile firm into the most valuable company in the world that is neither a tech giant

nor a state oil producer. Gina Cervetti, Bloomberg Radio. All right, Gina, thank you. Well, turning to the markets, the S&P 500 coming off nine straight days of gains. This week, investors will have a Fed decision and a bevy of earnings to digest. We get a preview with Bloomberg's Charlie Pellett.

We've heard from roughly 70% of S&P 500 companies, but a major theme is what they are or are not saying about geopolitical tensions, tariffs, and global boycotts. Emily Rowland is co-chief investment strategist at John Hancock Investment Management. We're learning

from this earnings season that companies are in really solid footing. Of course, they're going to need to contend with some of these challenges around tariffs potentially, but we're coming into this in a pretty good space. Among the notable names scheduled to report this week are Disney, Ford, Marriott, Uber, and Burger King parent Restaurant Brands International. In New York, Charlie Pellett, Bloomberg Radio.

Charlie, thanks. Oil prices are slumping. That's after OPEC Plus agreed to another bumper increase in output. The latest hike is more than 400,000 barrels per day starting next month. That matches a similar increase announced last month. Checking prices right now, NYMEX crude is down more than 2% at $57.05 per barrel. Brent is down 2% at $60.05.

Nathan, a shakeup in the Taiwanese markets. The currency has surged by the most in three decades. On speculation, exporters are rushing to convert their holdings of U.S. dollars to the island's currency. The central bank will hold an emergency press conference later today to address the surging local dollar. The Taiwanese dollar, which surged almost 5% earlier today, is up 3% right now. And Karen, Elon Musk says artificial intelligence could help offset the loss of government workers.

That's according to a person who attended a closed-door session at the Milken Institute Global Conference, where we're told the world's richest man called the U.S. government inefficient and said AI should be used to replace functions currently done by some public workers. Elon Musk's comments come as he prepares to wind down his role leading the Department of Government Efficiency, or DOGE.

Bloomberg will bring you the biggest names and most important conversations from Milken live all day long. We'll be broadcasting a special edition of Bloomberg Business Week from the Milken Conference starting at 2 p.m. Wall Street time. Catch it on Bloomberg Radio, Bloomberg Television, and on the Bloomberg Podcasts page on YouTube.

It's 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. Jury selection is set to begin today in the trial of Sean Diddy Combs. Some potential jurors have already been asked to fill out questionnaires on objectivity as the music mogul faces five federal counts involving sex trafficking and racketeering.

Jury consultant Dr. Joellen Demetrius talked about what prosecutors could be looking for in their picks.

I would think that the prosecution is looking for possibly older people. I think they're looking for certainly law and order people. Combs has pleaded not guilty. Flights in and out of Israel have been disrupted after a missile attack near Tel Aviv's main airport Sunday. Houthi rebels have claimed responsibility. Israel blames a glitch in its Iron Dome for not preventing the strike.

President Donald Trump says he is directing his government to reopen and expand Alcatraz, the notorious former prison in the San Francisco Bay. It has been closed for more than 60 years. In a message on his Truth Social site last night, President Trump wrote he wants to reopen and expand the prison to house America's most ruthless and violent offenders.

Renewed concern about the Trump administration's actions targeting public health over the president's first 100 days. Two New York senators say the White House has broken their promise to their own GOP leaders to restore funding for HHS programs that provide health care for 9-11 first responders. Senate Minority Leader Chuck Schumer. The administration, Donald Trump and RFK, revealed their true intentions Friday night when they fired another 16.

Not only did they not restore those who our Republican colleagues, they promised, were going to restore, but then they fired new people. Schumer spoke alongside fellow Senator Kirsten Gillibrand.

The Trump administration is planning to release a proposal to modernize the U.S. air traffic control system. It will include upgrades to air traffic control systems and facilities and require billions of dollars in new funding from Congress. The need for the upgrade was highlighted by recent technology breakdowns and staffing issues at Newark Liberty International Airport. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. All right, Michael Barr, thank you.

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Time now for the Bloomberg Sports Update. Here is John Stashower. John, good morning. Good morning, Karen. There had never been a Game 7 played in Winnipeg. There's never been a Game 7 like what the Jets played with the Blues, who held a two-goal lead for 45 minutes until with under two minutes to play, Winnipeg scored and then scored again with three seconds remaining. The latest game-time goal ever in a Game 7. They went to overtime, then double overtime. Ari, P.O.

Looking for the tip. It's a pass. Hunter Piot wants it. He gets it. Piot shoots. Sportsnet Canada had the call of the Winnipeg game winner Adam Lowry scored the goal. He was born in St. Louis because his father played for the Blues. The Jets advanced. The Warriors advanced to the NBA second round after losses in games five and six. Golden State won at Houston 103-89. Thanks to some brilliant three-point shooting not from Steph Curry.

from Buddy Heald. He was 9 of 11 on threes, scored 33 points. Second round underway with an upset win by Indiana, 121 to 112 in Cleveland. The Knicks looking for an upset, lost all four games of the Celtics in the regular season. Here's Boston's Jalen Brown on two old rivals meeting in the playoffs. It's a great stage for basketball, you know, just all the history between, you know, Boston and New York.

It's excellent to be able to live or to relive in that. So I don't take that for granted. I think a lot of people will be excited watching this series just because of the history. The 16th playoff series between the two, the first since 2013. Game one tonight in Boston at the stadium. Tampa Bay beat the Yankees 7-5.

In St. Louis, Cardinals swept a doubleheader for the Mets, 6-5 and 5-4. In Scotty Scheffler's home of Texas, he won the Byron Nelson by eight shots. He tied the PGA Tour record, a score of 253-31 under par. John Staschauer, Bloomberg Sports, Karen and Nathan.

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 a moment investors knew was coming, but still came as a bit of a surprise. Warren Buffett waited till the end of his annual shareholder meeting to announce he is stepping down at year's end. A CEO of Berkshire Hathaway handing the reins to 62-year-old energy executive Greg Isherwood.

ABLE. BILL STONE IS CHIEF INVESTMENT OFFICER AT OMAHA-BASED GLENVIEW TRUST. We all knew this day was going to come at some point. Like I said, I think if you're a shareholder, you feel good that it happened before, I'll say it quote-unquote, had to happen.

And joining us this morning after we got that news, Matthew Palazzola, Senior Insurance Equity Analyst at Bloomberg Intelligence with us in our Bloomberg Interactive Brokers studios. Matt, it's great to have you with us. And I think it's worth just taking a moment to reflect on this enormous run of success, what Warren Buffett built over nearly six decades at Berkshire Hathaway. Good morning.

Morning, yeah. You know, if you look at the returns of Berkshire Hathaway, double the stock market over the time that Buffett has been in charge. So truly phenomenal run. And it raises the question, can Greg Abel repeat that? Are investors expecting him to?

I don't think investors are expecting him to repeat that. I mean, look, there's one Warren Buffett, certainly some of the magic of the company gets lost. But as we were hearing, and Buffett has been talking about this for years, he has been preparing people, he's too good of a steward of shareholder money to let it come to a point where it was some sort of emergency or something like that. So, he has been preparing for this for a long time.

So what can we expect from a newly led Berkshire Hathaway under Greg Gable? Do we expect many changes from the kind of ethos that Warren Buffett and Charlie Munger really put into the company? Yeah, I wouldn't expect many changes right away. I think perhaps over time we can see...

Maybe the company get a little more friendly to analysts, which would be great for me. But I don't think right away. I mean, part of the reason that Abel is taking over is because he is going to carry on that ethos of Berkshire.

Berkshire Hathaway, of course, is so big. I think, what is it, like the eighth highest market cap in the S&P 500? Does Warren Buffett's departure raise questions for you about the future of Berkshire Hathaway's makeup itself, whether it could be due for a breakup down the line? I don't think that will happen. I do think Berkshire Hathaway got away with a lot because Warren Buffett, right? And without that, I do think

shareholders probably have more of a standing to bring up questions and bring up things like a breakup or these businesses, you know, better on their own. The board will still be made up of, you know, very Berkshire long-term friendly people, Buffett's children. So I think, I don't think anything major like that happens, but I do think the prospect of people

bringing up these questions and the company having to address them in a more coherent fashion does come up now.

So in our last 30 seconds for now, Matt, what are we expecting over the next several months before Warren Buffett officially does hand over those reins at the end of the year? Yeah, like you said, so Buffett still has the rest of the year. Berkshire doesn't do analyst calls. They don't do quarterly conference calls. I would expect Greg Abel gets out there more in front of the press.

in between now and the end of the year. He has, for such a large job, had a relatively low profile. So I do think you'll probably see him doing a lot more interviews in between now and then. Probably not investor stuff, but more media. 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.

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There's no business like small business. Hiscox Small Business Insurance. Is this a negotiation or the new rules of the game? It could be either. It is up to the president how he wants to negotiate. A deal is going to be made with China. Nothing's over yet. There's been a lot of confusion up to now. A 90-day pause.

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