US-EU Speed Up Trade Talks; Trump's Latest Harvard Threat
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Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, the lift in futures comes on optimism on the trade front. The European Union says it has agreed to accelerate negotiations with the U.S. to avoid a transatlantic trade war. The move comes after President Trump extended his deadline to hit the EU with 50% tariffs by more than a month to July 9th. To allow for more negotiations, we get more from Bloomberg's Oliver Crook.

It has been very difficult to get any idea of where the kind of hard points of negotiation are. The EU has put forward a number of proposals, probably all somewhat too abstract for the Trump administration, which is really just concerned with big dollar figures and sort of big wins. And of course, the difficulty the EU has is it is an institution that is not singularly best optimized to negotiate with an administration that can move very, very quickly and very mercurially because there are 27 different member states.

Bloomberg's Oliver Crook says President Trump's 50 percent tariff threat would hit $321 billion worth of goods trade between the U.S. and the EU. Nathan, let's get the latest now on the trade war with China. Bloomberg News has learned Chinese President Xi Jinping's government is considering a new version of its Made in China 2025 campaign to boost production of high-end technological goods.

policymakers are also looking to maintain the share of manufacturing and gross domestic product at a stable level over the medium to long term. And Karen, President Trump is airing more frustration with Russian President Vladimir Putin. I'm not happy with what Putin's doing. He's killing a lot of people. And I don't know what the hell happened to Putin. I've known him a long time. Always gotten along with him.

but he's sending rockets into cities and killing people, and I don't like it at all, okay? The president says he is absolutely considering sanctions against Russia. That's as it launched its largest drone barrage yet against Ukraine over the weekend. The Kremlin is dismissing the president's comments as an emotional reaction.

Meantime, German Chancellor Friedrich Merz says Ukraine now has permission from its allies to strike deep inside Russia. He says that includes weapons provided by the U.S. Previously, the U.S. had authorized use of its Atakums missile system in Ukraine's border regions with Russia.

Nathan, President Trump is wrapping up his fight with Harvard University even further. In a Truth Social post, the president said he's thinking of diverting $3 billion in grants from the Ivy League institution to trade schools across the country. The president wrote, quote, what a great investment that would be for the USA. The Trump administration has already frozen $2.6 billion in federal research money for Harvard and

and moved to block it from enrolling foreign students. Harvard won a temporary court order against that ban. The university has called all these moves to change its governance and diversity practices an infringement on academic freedom. Let's turn back to markets now, Karen. Bonds are rallying worldwide. That's after Japan indicated that it's looking to stabilize its debt market after weeks of rising yields.

The move from Japan suggests it is trying to stabilize a market where relentless selling has pushed bond yields to record highs. A sale of 20-year debt last week got the weakest demand in more than a decade.

Nathan, shares of U.S. Steel are up almost 2% this morning. President Trump has reversed himself and appears to have given his blessing to a deal with the Japanese industrial heavyweight. And we get more with Bloomberg's John Tucker. John, good morning. Good morning, Karen. President Trump announced a planned partnership between U.S. Steel and Japan's Nippon Steel, claiming it would create at least 70,000 jobs and add $14 billion to the U.S. economy.

While steel workers like Glenn Thomas reacted to the news. I'm elated, overjoyed. I'm happy for all the families that are going to be able to keep sending their kids to college, paying their mortgages and feeding their families. However, investors, executives and diplomats are still unsure of what exactly the president agreed to.

His unexpected announcement on Friday stopped short of explicitly endorsing Nippon Steel's proposed $14.1 billion cash takeover of U.S. Steel, instead asserting that the company would remain in America. This follows 17 months of negotiations, and after a 21% jump on Friday, again, U.S. Steel shares this morning uprooted.

are up 1.7%. In New York, I'm John Tucker, Bloomberg Radio. Okay, John, thank you. One of the biggest events this week comes tomorrow when NVIDIA reports its quarterly results. The chip-making giant is seen as a bellwether for so-called growth stocks and the sustainability of the artificial intelligence boom. Its outlook will be crucial given macro risks and tariff uncertainty. We get more from Bloomberg Intelligence Global Head of Tech Research, Mandiv Singh. Overall, look, the market is still...

under-supplied, and NVIDIA chips are still the most performant when it comes to accelerators that you need for AI. So from that perspective, I mean, NVIDIA still has that moat when it comes to the AI accelerator market. Nandeep Singh of Bloomberg Intelligence notes NVIDIA shares have surged 39% since they had a 52-week low on April 4th. This morning, they're up nearly 3%.

We turn to the economy now, Nathan, and the head of the Minneapolis Fed says rates should stay on hold until more clarity emerges from the trade war. Neil Kashkari spoke with Bloomberg in Tokyo. Is it going to be clear enough by September? I'm just not sure right now. Ultimately, we'll have to see what the data says, but we'll also have to see how the negotiations are going.

Minneapolis Fed President Neel Kashkari is not a voting member of the policy-setting Federal Open Market Committee this year. Stick with Bloomberg for full coverage of the Federal Reserve. Today, we speak with Richmond Fed President Tom Barkin. That's at 9.30 Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast page on YouTube. Well, Karen, the head of the European Central Bank, Christine Lagarde, says the White House's erratic policy

policies are an opportunity for the euro. She suggests the U.S. could be undermining the dollar's role as the world's reserve currency. In a speech this morning, Lagarde said this could be the moment the euro goes global. Moments of change can also be moments of opportunity. The ongoing changes create the opening for a global euro moment. And this is a prime opportunity for Europe to take greater control of its own destiny and

But let's not fool ourselves. It is not a privilege that will be bestowed upon us. ECB President Christine Lagarde is calling for a closer single market and more joint EU financing to make the bloc more financially attractive. And we stay in Europe, Nathan. HSBC has fired more than two dozen of its top analysts. Bloomberg has learned the cutbacks are mostly in Europe and include global head of fixed income research, Stephen Major.

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. British police say an incident in which a minivan hit crowds celebrating Liverpool's soccer victory is not being treated as terrorism. Merseyside police said a 53-year-old man, believed to be the driver, has been arrested and they are not looking for anyone else.

Authorities say 27 people were taken to the hospital with two suffering serious injuries and another 20 were treated at the scene for minor injuries. Nick Searly is the chief fire officer for Merseyside Fire and Rescue. On arrival, the crews are met with numerous injured people and four persons trapped under a vehicle. Our crews rapidly lifted the vehicle, removed three adults and one child from beneath and passed them to our ambulance service colleagues.

The crash happened at the end of the team's bus parade through the city after winning the Premier League this season.

Former U.S. Representative Charles Rangel of New York has died. The outspoken, gravelly-voiced Harlem Democrat spent nearly five decades on Capitol Hill and was a founding member of the Congressional Black Caucus. Former New York Republican Congressman Peter King says despite his prominence, Rangel stuck close to his roots. We were in different parties, but we were good friends. He was loyal, he was a true patriot, and as far as I was concerned, he was Mr. New York.

A veteran of the Korean War, he defeated legendary Harlem politician Adam Clayton Powell in 1970 to start his congressional career. In 2010, the House censured Rangel following an ethics scandal, but he stayed in Congress until 2017. His family said Rangel died Monday at a New York hospital. Charles Rangel was 94.

Louisiana's Attorney General says that three more people who escaped from a New Orleans jail earlier this month have been captured, leaving two escapees at large. Rafael Guarniachi of the New Orleans Metropolitan Crime Commission is worried about public safety for a couple of reasons. The fact that 200 officers have been working trying to find this means that their other responsibilities have suffered.

Meanwhile, nine people face charges of assisting in the escape or hindering the apprehension of the prisoners. 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.

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. How can you free your team from time-consuming office tasks? Amazon Business empowers leaders to not only streamline purchasing, but better support their teams.

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Time now for the Bloomberg Sports Update. Here's John Stashower. John, good morning. Good morning, Karen. The Yankees spending the week in Southern California. Three games with the Angels, then the weekend World Series rematch with the Dodgers. In Anaheim, the Angels let off the game with a home run. It was 1-1, fourth inning. The Yankees had the bases loaded and their shortstop at the plate. We're going to center field and deep. Taylor back. Still back. It's over his head. And one hop up against the wall.

Grisham scores. Judd scores. Here comes Bellinger. He'll score. It's a bases-clearing double by Volpe. And the Yankees lead 4-1. Yes, network the call. Yanks won 5-1. Another strong start for Ryan Yarborough. After the home run, he allowed only one hit in six innings. Yanks, since May 5th, are 14-4. The Mets at Citi Field are 20-6. Shut out until the eighth inning. They tied the game and then beat the White Sox 2-1.

on a Francisco indoor sack fly bottom of the ninth. Red Sox, third loss in a row, 3-2 at Milwaukee. NBA playoffs, Oklahoma City lost game three at Minnesota by 42, but won game four by two, 128-126. Shea Gilgis-Alexander, 40 points. He was an assist shy of a triple-double in the West Finals.

Our 3-1 Thunder heading back to OKC. A huge game four tonight in the East. Indiana had the big comeback in the series opener. The Knicks in game three had their third straight road win where they were once down by 20. Their coach, Tom Thibodeau, asked about all the comebacks. I know you guys like roll your eyes when I say no lead is safe, but no lead is safe because I think with the three-point shot, people make up ground quickly, pace the game, make up ground quickly. So, yeah,

You see comebacks all the time, and if you let up just a little bit, that's what happened. Knicks in the playoffs, 6-1 on the road. Those six wins by a total of only 16 points. Stanley Cup playoffs, Carolina stayed alive. A 3-0 win at Florida. Novak Djokovic and Coco Gauff among those with first-round matches this morning at the French Open. John Staschauer, Bloomberg Sports, Karen 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. The European Union says it hopes to put trade talks with the U.S. on a fast track. That's after European Commission President Ursula von der Leyen wanted to lay on President Trump's threat of 50% tariffs on the bloc until July 9th. She asked for an extension on the June 1st date.

And she said she wants to get down to serious negotiation. And that was the president announcing that delay to reporters over the long holiday weekend. This morning, we're joined by Bloomberg's Oliver Crook. So, Oliver, this is quite the turnaround from when President Trump just last Friday was saying talks with the EU were going nowhere. And he announced that threat. So where do things stand this morning?

Well, listen, they may not have made a huge amount of progress since then. Again, Ursula von der Leyen got on the phone after that announcement on Friday that the U.S. was going to target the EU with 50 percent tariffs. That would kick in theoretically next Sunday. That was pushed back to July the 9th, the original deadline for the Liberation Day pause on tariffs. And right now what the European Commission is trying to communicate is that since that conversation, they're now on a quote-unquote fast track process.

with negotiations with the United States. We should say this is not a sentiment that has been reflected by the United States. We know the Trump administration has been very frustrated with the EU because they feel that their proposals are too abstract, not really bringing them what they want to hear. On the EU side of things, they feel that the Trump administration is not making their desires very clear and there's not a clear path forward. And this is what led to basically the Trump administration turning up the pressure on the situation to see if the Europeans can rustle something up.

What it seems like the state of play is now is the main trade negotiator here in the EU, Sefcovic, will be taking the lead on industrial items such as steel, aluminum, cars, pharmaceuticals, semiconductors, those sorts of things. And then that is going to be split to parallel talks that will deal with some other tariffs and then the non-tariff barriers.

And this, Nathan, is where things get really complicated from the EU standpoint, because remember, the Commission is negotiating for 27 different countries. The Trump administration doesn't just care about tariff levels. They care about these non-tariff barriers. A lot of those issues go into sort of domestic political law, whether it's on tax, whether it's on regulation. And that you cannot just do with the stroke of a pen from Brussels.

even without a stroke of a pen. All this raises the question, Oliver, of whether July 9th is enough time in and of itself. That's just a little bit more than a month away. Yeah, I think it is a very, very big question. And I think that the Trump administration's gamble on all of this stuff is that it's going to hurt their counterparts more than it's going to hurt them. And that'll probably be true for the European Union because they run a trade surplus of about $200 billion worth of goods with the United States. That being said, you know, according to the calculations that our economists do here at Bloomberg,

It could cost, in terms of U.S. GDP, if you do hit the EU with 50% tariffs, about 0.6 percentage points of growth, and it would also be inflationary for the United States. So I think it is in both interests to get this trade deal through. This is a trillion dollars worth of trade every year. This is the biggest trading relationship that exists in the

across the world. But that is also the reason that both sides need to be happy with the outcome, because there's so much money at stake here that both sides need to be satisfied with what they get out of this deal. And they're going to be living with it potentially for a very long time into the future. So in our last minute, Oliver, what are we looking for next, particularly when the U.S. is focused as well on trade negotiations with Asian nations as well as most in the foreground, China?

Yeah, I mean, something that I've been a little bit sort of confused by is why we're not leaning more on the European side on buying more weapons from the United States. You have in Germany, for example, this massive fiscal push. They basically took away this debt break, which limited how much they could borrow. They now can basically borrow infinitely to buy weapons and arms.

And there's really only one place you can buy that from. That could be one place you could make substantial progress in terms of closing the trade imbalance. LNG is another place we'll be looking there for any sort of concrete numbers. And of course, we know the Trump administration loves a big number. So if you were to say, hey, listen, we, the Europeans, are willing to buy, you know, a trillion dollars worth of defense equipment and LNG over the next 10, 20 years, potentially that gets you somewhere with the Trump administration.

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.

Thank you.

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